Ask elop: PC for Microsoft really matter?


this paper hunting contribute yong-jie sun cloud network readers

a few days ago, Microsoft released third quarter earnings in fiscal 2014, Microsoft to buy nokia deal completed formal the next day, and according to the contract, nokia CEO Stephen Elop (Stephen Elop) will be transferred to the Microsoft is located in Washington state of mond city (Redmond) of the headquarters of the United States to work, leading Microsoft hardware department, mainly responsible for mobile phone with mobile devices such as Surface, and will keep close cooperation with the Xbox departments.

perhaps elop closely related to their own responsibilities and mobile business, the nokia deal after the completion of the merger and acquisition of Microsoft said: now, most users no longer have a personal computer, also won’t happen in the future. Windows, Office, or other similar products are also won’t appear in their lives. For Microsoft, the PC business has been insignificant. So the PC for Microsoft as elop said really insignificant?

here we might as well look at Microsoft’s latest results. Revenue of $20.403 billion, compared with $20.489 billion over the same period last year basically unchanged; Net income was $5.66 billion, $6.055 billion over the same period last year fell 7%. Due to Microsoft’s third-quarter results beyond Wall Street analysts’ expectations, promote its after-hours shares rose more than 2%. From here, it’s not hard to find, Microsoft shares rose reasons, not because of how the excellent performance, but profit beat analysts’ expectations, in other words, is for Microsoft’s performance is not as bad, analysts had expected and thanks to Microsoft Windows for the enterprise market business revenue grew 4%, in April, contact Windows XP stop taking (partial enterprises upgrade before new Windows or buy a new PC), to say the Windows system based on PC is the key to the Microsoft earnings exceed expectations. Windows performance strong through the first quarter of this year, of course, the traditional PC market in the performance of the PC makers have also been confirmed.

according to Gartner statistics, in the first quarter of this year the global PC market shipments by 2%, while still in a downturn, but the decline was least seven quarters, and traditional in the top five PC vendors in the PC industry, in addition to Acer, both achieved year-on-year growth. Reason has, according to the analysis of the decline in the traditional PC industry after the tablet and smartphone and enterprise to replace PC longer cycle has bottomed out after the pain, and with the XP stop taking periodic upgrades and replacement, and resulting in the next 12 months, the traditional PC industry will bring new growth to Windows. Visible whether now or in the future for a period of time, the PC for Microsoft’s revenue and profit is very important.

maybe someone will say, Microsoft’s new results in the growth of Microsoft’s cloud computing products and Office have also played a part. For example in the third quarter to Office 365 Home users increased by 365 to 4 million, and from the data displayed on the consumer’s Office demand gradually from independent standard version of the software to pay by month/year subscription form. The Azure cloud computing services revenue rose more than 150%. But we want to say is, the blog, Azure cloud computing, they eventually the main operation and service of the major platform (or end) is what? PC platform, of course. If according to the views of elop, PC for Microsoft insignificant, that these applications and services running in where?

with apple iPhone revenue occupy about 50% of the overall revenue and became the mainstay of apple revenue and profit, the present structure of Microsoft’s revenue, business license (Microsoft server products, Windows, Office authorized) income also accounted for about 50%, which is mainly the authorization of Windows and Office, and these authorization for platform is still the PC. For the simple reason that Microsoft is currently in the mobile Internet of smartphones and tablets two taichung only single-digit share of the market determines the Pacific Ocean, system or application authorization for Microsoft’s revenue and profit contribution is quite limited. Combined with the recent Microsoft announced its 9 inches below equipment (mainly contains the smartphone and tablet platforms) Windows for free (only the application authorization and hardware revenue), make the PC (specifically authorized) based on PC Windows platform for Microsoft becomes more important.

here, someone will still come out, according to the family of Microsoft’s new CEO, have put forward the “mobile first, the cloud first” new development strategy. And, also said in the earnings call, PC was Microsoft foundation for the development of the company, but for Microsoft has now entered a new era, a bigger market than the PC market. These are not on Microsoft PC from insignificant? But we want to say is, first, also said that in a world of computing ubiquitous, hope Windows are everywhere. But from the current view, the Windows everywhere is reflected in the PC, and it is Microsoft eventually “mobile first, the cloud first” the cornerstone of, or even mobile first, the cloud first source of revenue and profit of one of the main platform.

in Microsoft’s earnings release at the same time, Google, amazon, and so on also have released the results, but, unfortunately, amazon’s shares fell 9.9% on the day, and the company since last October 9 low; Google’s class A shares compared to February 25, down 14.3%. Investigate its reason, amazon is because investors is commonly used for amazon to profit in the market diversification strategy questions and patience; Google is diversified expansion to its Nest (such as mergers and acquisitions, driverless cars, hot air balloon connected to the Internet, Google glasses such as advanced but in the short term it is difficult to bring the actual revenue and profit promotion project), especially the number of paid links its core business is lower than the industry expected, advertising price decline is higher than the industry had expected. In all core business growth is lower than expected or transformation of the industry and diversified too far from the core business (for the core business to promote the growth of limited or difficult into new core business) is the enterprise is not the real reason for the capital market has.

so, transformation, or diversification, core business is the fundamental health growth. It quite like elop in claiming the PC for Microsoft has insignificant puts it at the same time, through the mobile phone business, is a in front of the for Microsoft’s eye can get the opportunity of a wave of 1 billion users, Microsoft will way for the user to provide access to the Internet, but Microsoft is struggling to obtain the new 1 billion users, slow progress, Microsoft has more than 1 billion users (mainly PC) is particularly important and precious. Because it is the Microsoft today “mobile first, the cloud first” the success or failure of the strategic transformation. The so-called skin don’t save, hair stand is this truth. Thus, elop on PC for Microsoft insignificant conclusion is wrong, for its mobile devices unit of eccentric Microsoft consciousness of them (the importance of the leadership of department), or as in the former CEO of nokia soon abandoned Symbian (analogous to early to say today the PC is not important) and quicken the destruction that nokia really couldn’t see the strategic focus of enterprise survival and development, in either, elop the conclusion for the future of Microsoft is dangerous.