When a new chief executive officer comes on board, he usually does a bit of cleaning. It happens with just about any companies. It happened when Larry Page took over. It happened when Steve Jobs returned to Apple and it sure as heck happened when Tim Cook took control of Apple with major changes. Now, it's Microsoft's Satya Nadella's turn. However, while the previously mentioned changes instituted by those CEOs appear orderly and planned, it is difficul to put Nadella's latest changes in that category nor does it appear we'll see the end of it and see Microsoft on the verge of a new era.
First, there is
the executive resignations including the former CEO of Nokia Stephen
Elop. In all, four senior executives were shown the door. Now, comes
news that Microsoft is planning to layoff more than 1,200 employees from
its ad display division. It spoke to the failure to compete with other
ad companies, in particular, Google (Bloomberg).
Microsoft is selling to Uber its image collection group within Bing.
If Bing was healthy and competitive, it's unlikely this transaction
would have taken place. Taken a long with layoff in the display ad
group, you have to be worry whether Bing is working out worse than
Microsoft is letting on.
Having said that, a lot is
riding on Windows 10 to reinvigorate the PC market, and to a lesser
extent, the mobile phone market where Microsoft is struggling against
Android and iOS. So far, things are looking well in the Windows beta
stages. Microsoft desperate needs Windows to continue its dominance and
bring in much needed revenue to cover the rest of the company to give
Nadella time to grow other Microsoft's core businesses.
has done a great deal of harm during his reign. Sure, Microsoft made
tons of money but on core products like Windows and Office while the
rest of the company languished or simply failed to innovate. For the
moment, it appears that Nadella is a more astute CEO who knows the
culture under Balmer has to go. However, it'll take time as the latest
changes has not instill confidence in the market or among its
Whether you're an Apple or Google fan,
you have to appreciate the competitive value that Microsoft represents
in multiple markets. And as always, more competition the better.
Still, it would be nice if Microsoft had something more to share than what appears to be all bad news.
Monday, June 29, 2015
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