Read too much: Microsoft, is in a departure from the ballmer strategy?


the author: yong-jie sun

recently, as Microsoft CEO satya? , (Satya Nadella) sent to Microsoft employee memo exposure and then announced the most massive layoffs in Microsoft’s history, caused the industry to, under the leadership of Microsoft’s strategy of interpretation, some even, memos and layoffs email decoding, and deduce from that, is a departure from the original ballmer to formulate strategy. For example “equipment + service”; Windows position is no longer important, mergers, nokia was a mistake, and so on. So, in a departure from the ballmer really strategy?

the first watch industry took pains to memorandum, reading. In the first 2000 words in the memo, Della did not even mention Windows, even mentioned, Microsoft’s chief executive satya? , (Satya Nadella) only few words mentioned Windows, and this memorandum mentioned in only, at 60%, and thus concluded that, send out the message that is different from Mr. Ballmer, namely Windows in Microsoft’s strategy, is no longer important.

coincidentally, just after released, memos, Microsoft’s shares rose 3.84%, hit a 14-year high. It seems to be for the analysts determine provides powerful evidence. But is it really the case?

is the same in the previous, market research firm IDC, according to data from the second quarter of this year the global PC market shipments fell by only 1.7%, far better than expected, even the analysis thinks, the PC industry has started to rebound. Is based on this, in the PC industry Wintel combination of Intel unveiled its strong second-quarter earnings. The PC client department in the second quarter on revenue of $8.7 billion, rose 9%, year-on-year growth of 6%, quarterly sales hit a new record. Intel said before because of a PC upgrade cycle factors, the company’s financial situation will be more than expected, the second quarter PC client business requirements will add another $700 million, which is the business from the first increase since the end of 2009. And the fact is known to all, Intel performance well means that Microsoft Windows department will also usher in a strong quarter. I’m afraid this is the Microsoft shares are at new highs in 14 years the largest drivers.

to contact Microsoft to Build 2014 developers conference held before and after Microsoft WPC, in addition to the official launch WP8.1 and Winodws 8.1 Update and the status quo and future opportunities of Windows and hope that the fact of the ubiquitous Windows still move weight in Microsoft’s strategy. But the reality is, compared with the PC era of Windows, Microsoft instead, speed up the rhythm of the launch Windows. For example, Windows 8.1 release time later than Windows 8 to 12 months, Windows 8.1 Update 6 months later than Windows 8.1. Many in the industry are predicted, code-named Threshold Windows 9 release time is spring rather than fall next year.

this, Raymond James analyst pointed out that in the study, many people early in the Microsoft Windows that sentenced the death penalty in the PC era, but in fact, Microsoft has a potential is on this basis, provide investors with a lot of transformation, make Windows can support Microsoft applications and services, it has also become one of the many platform of delivering these services. Windows will not, in other words, as many had thought become a thing of the past, but will be integrated into a broader platform for the software, help Microsoft more ambitious mission, for the customer, especially for enterprise customers to provide services.

this watch, Windows not only relationship with Microsoft now, also is the foundation of Microsoft into the future and Bridges.

the second is aimed at Microsoft, E-mail, the industry believes that, for Microsoft before m&a nokia has been negative, and the mass layoffs, especially layoffs comes mainly from m&a to nokia, extrapolating the nokia mobile phone business, think that m&a is failed, and Microsoft isn’t attaches great importance to the hardware in the future.

as we wrote before analysis, if Microsoft doesn’t merger and acquisition of nokia, I’m afraid that there is no chance, today in preaching and his “mobile first” and “cloud” priority strategy. At least on “mobile first”, Microsoft in both systems, applications and hardware (the phone itself), Microsoft will rely on time due to excessive before nokia, but because of the high degree of uncertainty on nokia’s choice and division at any time. Microsoft’s acquisition nokia to some extent, therefore, is to let Microsoft in the mobile market, and become one of the three great mobile ecosystem, while the market share is still small. So-called green hill in to stay, not afraid of no firewood.

when it comes to, for the position of hardware, from Microsoft before the layoffs and kill off Nokia Nokia X based on Android, the next 18 months ending Nokia Asha, S40 function machine business, full to the company based on Windows Phone smart phones, not only shows the importance of the above Windows, at the same time, given the current Windows Phone fee has been removed, but the followers still very realistic, Microsoft hardware as the carrier to promote their Windows (including the revenue and profit from the hardware) is particularly important. The same full falls in the tablets. This is why Microsoft has always been to vigorously promote their Surface of the main causes of the tablet.

as for job cuts itself, IDC analysts don’t think related layoffs shows that, to buy nokia mobile phone business. First of all, Microsoft did not disclose the business department of the number of layoffs. In fact may be most is overlapping with Microsoft. Accordingly, cuts cannot be interpreted as, reject Microsoft smartphone makers. Importantly, even if not a buyout by Microsoft, equipment and services department in accordance with the nokia mobile phone business poor performance, nokia will through a thin body. And because, in our opinion, Microsoft cut nokia before the main mobile phone line, and at the same time to cut the nokia employees is normal, since nokia mobile phone business can’t for now Microsoft’s open source, so the throttle is the inevitable choice, and Microsoft shares rose, Microsoft this undoubtedly also played a key role.

to this, the industry may question, since Windows, hardware for Microsoft is so important, then, “mobile first” and “cloud” priority strategy and how to explain? We believe that, at present the “mobile first” and “cloud” priority strategy and ballmer’s strategy of “equipment + service” is not a contradiction or opposition. Imagine if have no Windows Phone (including system and the Phone itself), why move first? The so-called “cloud first” itself is not based on the system, application, or more specifically, based on the Windows ecosystem (including mobile, PC, server, data center, etc.) of the service?

so we will be more willing to, “mobile first” and “cloud” priority strategy as in ballmer’s strategy of “equipment + service” on the basis of an extension, rather than negative. Skin don’t save, hair stand. If because of the one-sided understanding and repudiates ballmer’s strategy of “equipment + service”, the “mobile first”, and “cloud” priority strategy will become a madrassa reflected, non-existent.