What You Should Know About Satya Nadella's Microsoft

 
 
By Don Reisinger  |  Posted 2015-07-09
 
 
 
 
 
 
 
 
 
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    What You Should Know About Satya Nadella's Microsoft
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    What You Should Know About Satya Nadella's Microsoft

    By Don Reisinger
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    Nadella Is Thinking About Microsoft's Future
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    Nadella Is Thinking About Microsoft's Future

    By laying off 7,800 people, Nadella may not be doing the popular thing, but he is doing what Microsoft needs right now. The company has not, and never will be, a mobile handset maker. When Microsoft announced that it was acquiring Nokia, its decision was a shock and mystery. Now, Nadella is confirming what the rest of the world already knows: Microsoft is not in the business of making smartphones.
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    Trampling Ballmer's Legacy
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    Trampling Ballmer's Legacy

    One thing Nadella seems to have no issue trampling, however, is Steve Ballmer's legacy. Although he has never publicly commented on his predecessor's mistakes, he has tried to right the many wrongs. Nadella has converted Microsoft to a cloud company, written off the Nokia deal, and fired some of Ballmer's top lieutenants. Nadella is saying, in his own way, that Steve Ballmer didn't cut it as a CEO in his last few years in the job.
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    Nadella Isn't Changing Tack on Mobile
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    Nadella Isn't Changing Tack on Mobile

    Although Nadella's decision to lay off 7,800 people suggests his company is moving away from a mobile track, that's only partly the case. Microsoft is still committed to Windows Phone and being a "mobile-first" company. The layoffs suggest that Microsoft is simply only looking to get out of building devices and spending the significant cash it takes to be successful in that market.
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    It Truly Is About Software
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    It Truly Is About Software

    In a statement on July 8, Nadella didn't explicitly say that smartphone production is dead at Microsoft, but he came close. He said that "in the near term," he'll provide a "focused phone portfolio," but over time, he's planning for a "reinvention in mobility." The statement is part of a broader tale: Microsoft is still all about software and services. Whether it's Windows, Azure or Office 365, Microsoft's future is all about software and services and not hardware in any market, let alone mobile.
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    The Cloud Is Critical
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    The Cloud Is Critical

    The cloud is a critical component in the Satya Nadella-run Microsoft. Every chance he gets, Nadella says that his company is a "mobile-first, cloud-first" firm that wants to reinvent both markets. There's no reason, based on Nadella's recent moves, to suggest he's stepping away from the cloud. Quite the contrary, Microsoft's future may rest solely in its ability to appeal to cloud customers.
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    Windows 10 Is Only So Important
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    Windows 10 Is Only So Important

    Following that, it's worth noting that while Windows 10 is very important to the future of Microsoft, it's not nearly as important as it once was. Years ago, Windows was the be-all, end-all to Microsoft. Now, it's just a software platform that's a vehicle for the company to peddle its cloud services. Look for Windows 10 to take a backseat to all of Microsoft's initiatives in the cloud.
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    The Future Is Not in Being Apple
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    The Future Is Not in Being Apple

    If the layoffs and Nadella's recent comments about Microsoft's future say anything, it's that the Microsoft CEO does not see his company as another Apple, making hardware and controlling the software experience from cradle to grave. Quite the contrary, Nadella wants to run a platform-agnostic company that services users across operating systems. That's quite un-Apple-like and shows again that the iPhone maker is becoming less and less a competitor in Nadella's eyes.
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    The Enterprise Appears to Be a Concern
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    The Enterprise Appears to Be a Concern

    Microsoft's enterprise focus is more laser-like than ever. The company's many moves and decision to pivot on Windows 10 and make it a free upgrade while retaining some of the top features in Windows 7 was a tip-of-the-hat to the enterprise. Nadella has also touted his company's plans for bring-your-own-device (BYOD) initiatives and building out CRM systems. The enterprise, Nadella seems to believe, is critical to his company's future.
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    Google Is Only Marginally Worrisome
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    Google Is Only Marginally Worrisome

    Microsoft isn't giving up on Bing, as evidenced by the company's recently announced partnership to run AOL's search and ad services and the service's integration into Windows 10. Nadella's focus has been on mobile and the cloud and not about competing with Google on search and ads and operating systems. Unlike Ballmer, who saw Google as a major threat, Nadella seems to believe that the search giant is only of marginal concern.
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    PC Makers Still a Piece of the Pie
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    PC Makers Still a Piece of the Pie

    Nadella hasn't talked much about PC makers since he became CEO, but that doesn't mean he believes they're unimportant. Quite the contrary, Microsoft has made every concession necessary to keep its PC partners happy and keep them churning out Windows devices. With Windows 10, Microsoft is expected to enhance its partnerships with third-party PC makers, realizing all too well that when customers buy hardware with its software on it, Microsoft can pitch its cloud services down the pipeline. PC makers hold far more clout in Redmond than one may think.
 

Microsoft CEO Satya Nadella just a few weeks ago wrote about his company's new mission and where he wanted to take the once-software-focused company in the future. And now, he has announced that he's slashing up to 7,800 jobs. The majority of those positions will come from Microsoft's mobile phone unit acquired with Nokia Devices. The layoffs came with Microsoft announcing that it would need to write down $7.6 billion for its Nokia purchase, making it one of the most catastrophic decisions in the company's history. However, Satya Nadella seems willing to take his beatings where he must and accept that past mistakes must be overcome. His decision to cut so many jobs suggests that Microsoft is firmly in his grips and he's ready to tackle the mistakes of past company leaders. What else should you know about Nadella's Microsoft? In the following slides, we'll examine the impact Satya Nadella has had on the marketplace and explain why he's had such a profound effect on Microsoft in a short time.

 
 
 
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 
 

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