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In April, Microsoft CFO Chris Liddell said the company was not feeling the effects of any economic slow down. Now its is, reports Global Equities Research analyst Trip Chowdhry.

We know of at least two internal IT projects (one worth $1.3 million and other $2.7 million) that have been canceled halfway through deployment. Contacts tell us every project is now getting reevaluated, and depending on the relevance to the core business, projects are either accelerated, delayed or canceled.

Microsoft chairman Bill Gates fought to kill the Microsoft-Yahoo merger. If million-dollar internal projects can't get funding at Microsoft, does anybody doubt the fiscally conservative founder might have worried Microsoft couldn't spare the cash to complete the deal? (Photo by Robert Scoble)