A New Microsoft?
Companies are always trying to re-invent themselves. When all else fails, they shuffle the deck and see if something new falls out of it. In the recent past Microsoft has done quite a bit of shuffling and finally, it seems that good things are happening.
The old, traditional Microsoft that most of us grew up with has historically lived by one driving philosophy: Windows now, forever, and only. When Windows ruled the Earth, Microsoft held sway over much of the IT industry. Windows is primarily a desktop OS, and by late last year, as the undeniable truth became obvious to all, that the importance of desktops and their OS’s was receding, Microsoft embarked on a new path. Finally.
The old order as led by Steve Ballmer continued to perpetuate the old way of thinking. In times past, Microsoft was a bit of a bully, pushing and forcing its will upon the world simply because it could. In recent years though, the bully seemed more like a cranky old man, increasingly less relevant in the new world of cloud, mobility and tablets.
Though Microsoft was and still is a very profitable company, the tech industry can turn winners into losers in very short order. Ask Blackberry. Microsoft had already reorganized around a ‘devices and services’ strategy, but with limited success. The $900 million dollar failure of the Surface tablet seems to have been the final straw for Ballmer.
Enter Satya Nadella.
A new CEO rarely brings about a fundamental shift in the culture of a company. This is especially true when the new CEO is a product of the old culture. But so far, this appears to be the case with Satya Nadella. His short tenure has already had a profound impact on the direction of the company and its public perception. His accomplishments (so far) include:
- A new ‘Cloud First, Mobile First’ philosophy. This seems so obvious, yet it is such a radical departure for a company built around “Windows and Office”.
- The release of the Office suite for iPad. Give Ballmer credit for developing this on his watch, but why continue to sit on it? Now that it’s out, look for Office365 sales to explode.
- Renaming Azure from ‘Windows Azure’ to ‘Microsoft Azure’. Small, but a clear indication of the new thinking in Redmond.
Even WindowsPhone 8.1 is getting positive reviews. If you are at all familiar with Microsoft’s history in the phone market, this is nothing short of a miracle. It’s too soon to know if the acquisition of Nokia will be a bust or a breakthrough, but for the first time, there is hope for Microsoft in a product category it desperately needs.
Microsoft seems to have finally accepted the fact that it no longer rules the computing universe by fiat. It can no longer wield Windows as a bludgeon to get its way in all things. And it doesn’t have to. It is a company full of smart people, good products and compelling offerings, especially via Azure and Office365.
A new CEO, a new day, and Microsoft seems to be off to a great start.