Microsoft is reinvented for Apple

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The CEO of Microsoft, Steve Ballmer, has written a letter to its shareholders something already an open secret: Microsoft is bringing its business model and closer to Apple. In the letter, the manager makes it clear that his future is in the hands of hardware and online services, just like the apple company. Although not only she, Google and Amazon also run in the same direction.

Microsoft is a company of devices and services. “With these words printed in a letter to the shareholders of the company, Steve Ballmer makes clear that the software giant’s strategy is changing and that their business model is going to look increasingly Apple further, focusing more on the production of appliances. In the letter, the manager makes it clear that his future is in the hands of hardware and online services, just like the apple company. A final confirmation of the spin business in the world’s leading producer of software.

Although Ballmer does not clarify what Microsoft plans to manufacture hardware, it does say that “there will be times when you build specific devices for specific purposes” in the style of the Xbox or tablet announced Surface, which will be released on October 26. A comment that leaves the door open for Microsoft to launch its own smartphones, as speculated insistently.

“We want to create the best experiences in hardware, software and services, and thus unify all devices that people use every day,” Ballmer insists on the letter. The confession of directors to shareholders shows a company that aims to mimic the business approach that drove Steve Jobs at Apple. A strategy-that of strengthening the integration of hardware and software services, which has been brilliant, with hits like the iPod, the iPhone and iPad, or associated with Apple iTunes Store.

The head of Microsoft, who took the baton from Bill Gates in 2000, also said that his company will continue to work with traditional hardware partners (HP, Dell, HTC and Samsung, among others) to offer a wide range of Windows PC tablets and phones, but makes clear that Microsoft’s role in the so-called war of ecosystems is changing, “because the value of our software will be seen depending on how people use the devices and services both at work and in life staff. And this is a major change, “he said.

Ballmer and his entire team seems to be clear that creating its own ecosystem (adding software, hardware and services) is key to being a major player in the future of the technology industry. In this regard, said that this “affects the way the company is run and how to take products to market.”

The manager, who said that there are more than 1,300 million Windows users, adding that Microsoft is facing a great opportunity for next year and the next decade. “This is a new era paraMicrosoft, an era that presents an incredible opportunity for us, for the eight million developers who make applications for our devices and for the more than 640,000 partners we have in the world.” Thus, although the devices may be more than half an end Ballmer of view not to lose them.

Google and Amazon, online

Neither Apple nor Microsoft are now the only companies to try their luck creating an ecosystem that drives your business. Amazon does with its Kindle digital book reader, the Kindle Fire tablet and multiple content services and cloud storage. Google also, that besides a powerful operating system (Android) and numerous online services, has purchased a landmark mobile manufacturer, Motorola.

For analysts is clear that all these technology titans seek multiple goals with this strategy. One, make sure that the devices are marketed perfectly support their applications and services. Other, winning independence from device manufacturers, gain greater control over the value chain and increase revenue from the sale of the devices themselves, as noted by Ivan Gonzalez, director of Pentheus. In the case of Apple, Google and Microsoft, it also seems clear that they want to ensure that their programs are everywhere.

The standard fee of Steve Ballmer declined by 4% during the fiscal year to $ 1.3 million, due to slower internet business and falling revenues Windows division. Ballmer received a bonus of $ 620,000 compared to 682,500 last year, while his salary remained in the vicinity of $ 685,000.

It is the only movement around the direction of Microsoft. The tech giant also confirmed the resignation as a member of its board of Reed Hastings, CEO and co-founder of Netflix. The manager, who has been an independent director of Microsoft for almost six years, will be in office until the shareholders’ meeting to be held in November. Hastings said he had decided to reduce the number of boards on which is present to concentrate on Netflix.

A forced change and controversial

Something’s happening in the technology industry for software companies and Internet like Google, Amazon and Microsoft are taking steps towards becoming firmer the hardware business. A twist that seems forced, but at some risk to Microsoft. “All this must be understood in a market where the convergence of devices, applications and content is an unstoppable trend, and where the boundaries between products and services offered by different providers are blurred,” says Ivan Gonzalez, director of Pentheus. This expert warns, however, a risk: “That until recently complementary providers, such as hardware and application, come to compete also, and alliances between them may prove increasingly difficult.”

Indeed, the imminent launch of Surface, Microsoft’s tablet, has been publicly criticized by some Microsoft partners such as Acer. A normal reaction if you consider that to date the company led by Ballmer lived basically licenses to sell products like Windows and Office that came preinstalled on the PC. And there, in that model, hardware manufacturers were key partners.

Despite Ballmer’s letter, which shows a more radical turn toward Microsoft devices, the company has proven itself capable of launching hardware market, albeit with mixed results. Certainly, the firm will seek to replicate the success of its Xbox console, which has generated a number of subscribers to its online services, and forget failures like Zune or its Kin phones.

 

Ballmer and Hastings

The standard fee of Steve Ballmer declined by 4% during the fiscal year to $ 1.3 million, due to slower internet business and falling revenues Windows division. Ballmer received a bonus of $ 620,000 compared to 682,500 last year, while his salary remained in the vicinity of $ 685,000.

It is the only movement around the direction of Microsoft. The tech giant also confirmed the resignation as a member of its board of Reed Hastings, CEO and co-founder of Netflix. The manager, who has been an independent director of Microsoft for almost six years, will be in office until the shareholders’ meeting to be held in November. Hastings said he had decided to reduce the number of boards on which is present to concentrate on Netflix.

He has over 5 years of experience as Online Media and Marketing Consultant, which allow him to enable companies to enhance and meet their Digital marketing goals. He has experience as both in-house and Agency Digital Marketing Experts. Ha has spent the most recent 4 years of his career focusing building Strong terms of Digital Marketing for his clients. In addition to his strengths on Building Brands and Serving Online Marketing strategy for his clients.

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