Satya Nadella faces reinvention challenge at Microsoft

  • Yashwant Raj and N.Madhavan, Hindustan Times, Washington/New Delhi
  • Updated: Feb 06, 2014 15:25 IST

Software used to be a product on desktops. It is now increasingly a service you rent on the Internet – or the cloud.

Satya Nadella, Microsoft’s new Hyderabad-born CEO has to address this tectonic shift that takes away from his company’s PC era monopoly. His appointment brings back technology focus from the marketing-oriented Steve Ballmer, who led the company for 13 years.

“I am glad they picked an engineer,” said a former high-level Microsoft executive, who asked not to be identified. “They badly need a good product.”

Revenues from the ubiquitous Windows platforms is down roughly 30% since 2010. The MS Office product is growing at stagnant rates. Giants like IBM and Amazon lead “cloud” services in which Microsoft is a latecomer. Google search is leap years ahead of Microsoft’s Bing.

A shaky marriage with Nokia to sell Windows mobile devices – up against Apple and Google Android-led Samsung, and a lacklustre start to Surface, its tablet PC, add to the woes. In gaming the Xbox is up against the mighty Sony.

Nadella, luckily for the company, has a solid grounding in cloud computing, which is where the future is. But he also has to think of various divisions. Tongues are wagging about a company break-up.

“He needs to start from scratch and think about what the company should be,” wrote Marc Andreessen, co-founder to the Netscape browser .

As Bob Darrow wrote on industry site GigaOm, “the company is trying to navigate a tricky transition from its client-server cash cows — Office and Windows — to a cloudier SaaS (software as a service) model.”

It might help Nadella that Microsoft is sitting on $83 billion (Rs 5.2 lakh crore) in cash.

http://www.hindustantimes.com/Images/popup/2014/2/gfx-indian-ceos.jpg
From Around the Web
Sponsored by Revcontent

also read

Government aware of sectors generating black money, says Jaitley
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome