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August 23, 2013 07:29 pm GMT
The final shoe has dropped in the massive, wholesale re-organization of Microsoft which began this July, and saw all the department heads changed in an effort to focus efforts on hardware and services, and make the company’s various product groups work more closely together and be more cohesive. Yes, CEO Steve Ballmer is out, having announced he will retire within 12 months. Say what you want about Microsoft, but the company has held on through a time of tumultuous change in the technology industry. When Ballmer took over the CEO role from founder Bill Gates in 2000, the company was dealing with one of the largest antitrust battles in U.S. history, due to having used its dominant position in the PC market with Windows to take out competitors, like Netscape’s Navigator web browser, which competed against Microsoft’s Internet Explorer. Microsoft today has some successes in gaming, the enterprise and cloud, to be sure. For example, as TechCrunchnoted earlier this month,Microsofts cloud computing product, Azure, recorded $1 billion in revenue over the past 12 months it was reported in April, andOffice 365 is currently generating revenue at arun rate of $1.5 billionper year, and growing. And the Xbox 360 is far from dead. But the company has been struggling to shift with the sea change that is the end of the PC era, and the shift to mobile. PC shipments were down 14 percent year-over-year in the first quarter of 2013 – their worst decline ever – and they were down by 11 percent the next. Meanwhile, tablets may begin to outsell PCs by Q2 2014. But Microsoft’s own entrant into this space, the Microsoft Surface, hasn’t been selling. The company even had to take a giant $900 million writedown last quarter because of unsold Surface RTs, the ARM-based version of the Microsoft Surface tablet computer. Meanwhile, Microsoft’s performance in mobile computing, still leaves much to be desired, as well. The Windows Phone operating system, and the devices from the leading Windows Phone OEM, Nokia, are seeing expanded shipments, but the OS is still competing for third place in a smartphone market dominated by Apple and Google’s Android. While Ballmer may have gotten Microsoft through its days of antitrust battles still intact, instead of having to split up into different units, he hasn’t been able to help Microsoft take a leading position in the emerging post-PC era. To be fair, anyone
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/iR3UrebHNvk/
As The PC Era Ends, Microsoft's Next CEO Faces An Uphill Battle On Mobile
The final shoe has dropped in the massive, wholesale re-organization of Microsoft which began this July, and saw all the department heads changed in an effort to focus efforts on hardware and services, and make the company’s various product groups work more closely together and be more cohesive. Yes, CEO Steve Ballmer is out, having announced he will retire within 12 months. Say what you want about Microsoft, but the company has held on through a time of tumultuous change in the technology industry. When Ballmer took over the CEO role from founder Bill Gates in 2000, the company was dealing with one of the largest antitrust battles in U.S. history, due to having used its dominant position in the PC market with Windows to take out competitors, like Netscape’s Navigator web browser, which competed against Microsoft’s Internet Explorer. Microsoft today has some successes in gaming, the enterprise and cloud, to be sure. For example, as TechCrunchnoted earlier this month,Microsofts cloud computing product, Azure, recorded $1 billion in revenue over the past 12 months it was reported in April, andOffice 365 is currently generating revenue at arun rate of $1.5 billionper year, and growing. And the Xbox 360 is far from dead. But the company has been struggling to shift with the sea change that is the end of the PC era, and the shift to mobile. PC shipments were down 14 percent year-over-year in the first quarter of 2013 – their worst decline ever – and they were down by 11 percent the next. Meanwhile, tablets may begin to outsell PCs by Q2 2014. But Microsoft’s own entrant into this space, the Microsoft Surface, hasn’t been selling. The company even had to take a giant $900 million writedown last quarter because of unsold Surface RTs, the ARM-based version of the Microsoft Surface tablet computer. Meanwhile, Microsoft’s performance in mobile computing, still leaves much to be desired, as well. The Windows Phone operating system, and the devices from the leading Windows Phone OEM, Nokia, are seeing expanded shipments, but the OS is still competing for third place in a smartphone market dominated by Apple and Google’s Android. While Ballmer may have gotten Microsoft through its days of antitrust battles still intact, instead of having to split up into different units, he hasn’t been able to help Microsoft take a leading position in the emerging post-PC era. To be fair, anyoneOriginal Link: http://feedproxy.google.com/~r/Techcrunch/~3/iR3UrebHNvk/
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