Friday, July 11, 2014

Microsoft's Changing Focus

The old adage that what gets you there can't keep you there seems to run across every industry and every company.  It seems especially so in the technology industry where the pace of change ever increases.  And for Microsoft, in particular, what got them there, licensing Windows and Office content on every computer, isn't keeping them there either.  They have been usurped by companies like Apple, Google, and others who keep reinventing themselves and delivering new products and services.  According to Satya Nadella, new CEO of Microsoft, now it is Microsoft's turn. 

His memo to Microsoft employees lets them know that they are no longer a device or services company; rather, "Microsoft is the productivity and platform company for the mobile-first and cloud-first world."  With this new direction, many wonder where Xbox fits in this new strategy.  Should it be sold off or is there a place in this new business model.  For now, given its current success, no changes are planned.

For the rest of Microsoft, employees are wondering if it means layoffs especially from its acquisition of the Nokia mobile phone business.  Can Microsoft turn this new mission into a reality and once again claim market share?  What new tools and apps does Microsoft have to attract more customers to their platform?  Many believe that Nadella has the skill set to make this turn around happen.  In the end, the technology industry continues to evolve quickly and Microsoft could be the ones to lead consumers through the next turn.