"There are a lot of possibilities," Rosoff said. "They may be setting up for an acquisition, they may just be really conservative. ... Some combination of small acquisitions or maybe a larger acquisition is definitely possible. It depends on where they think their biggest weakness is."

He suggested Microsoft would serve itself well by making an acquisition in the mobile space, where Apple is still far ahead. While Microsoft floundered this quarter because of declines across its entire business, Apple reported a strong one mainly because its iPhone continues to do well, Rosoff said.

Despite Microsoft's disappointing quarter, analysts are hopeful the forthcoming Windows/Office product cycle and the commercial availability of the Windows Azure cloud platform in November, among other product launches in the next two quarters, will revive the company's growth.

"Windows 7, Windows Server 2008 R2, Bing, Xbox 360 console update and new Halo content, Office 2010, and the Azure Cloud Platform provide a platform for renewed innovation vigor beyond anything we have seen from Microsoft for multiple years," according to a note released Friday by Goldman Sachs.

The firm noted that although Microsoft is introducing a raft of products at a time when IT spending is low, the new products, combined with even a modest rebound in IT spending, could have a significant impact on boosting Microsoft revenue for the remainder of its 2010 fiscal year, which ends June 30, 2010.