Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • Mobile
    • PC Hardware

    What Ballmer’s Exit From Microsoft Means: Analysts Weigh In

    By
    Pedro Hernandez
    -
    August 23, 2013
    Share
    Facebook
    Twitter
    Linkedin
      Steve Ballmer

      In an unexpected move, Microsoft CEO Steve Ballmer announced Friday, Aug. 23 that he was retiring within 12 months, giving up the chief executive post that he has occupied for more than 13 years. “There is never a perfect time for this type of transition, but now is the right time,” said Ballmer in an Aug. 23 statement issued by the software giant.

      Ballmer’s sense of timing doesn’t align with that of many analysts and his critics, whose calls for him to step down have grown progressively louder over the years.

      According to Gartner Vice President David Cearley, “Steve had become a lightning rod for all of Microsoft’s problems—particularly with investors. Recent poor performance, weak interest in Windows 8 and the massive write-down related to Surface intensified this and activist stakeholders.”

      The timing of Ballmer’s retirement “is going to create additional challenges for Microsoft. The shift to a ‘devices and services’ strategy and the recent reorganization create a level of uncertainty about Microsoft’s future,” Cearley told eWEEK. “This only adds to that uncertainty.”

      There is a silver lining. “On the positive side—bringing in a new leader provides Microsoft an opportunity to reset its relationship with many constituencies,” he said.

      The Ballmer years were also marked by opportunities lost. Zeus Kerravala, a ZK Research analyst, told Reuters, “Since he took over in 2000, it is fair to say he missed a number of transitions: mobile, tablets, cloud.” Ballmer, he argued, is a PC guy operating in a post-PC world.

      “Ballmer’s strength is traditional PC computing. He was a great guy for his era but times have changed and a new leadership is needed,” remarked Kerravala.

      It’s a lesson that Microsoft’s competition, indeed the industry at large, should heed, Trip Chowdhry, managing director for Global Equities Research, wrote in an analyst note. Drawing parallels to Apple’s current leadership, he wrote, “Both Microsoft and Apple had strong leaders before Ballmer and Cook—they were Bill Gates and Steve Jobs; and both Ballmer and Cook have been struggling.”

      Chowdhry asserted that both chief executives “seem to reward politics over performance” and have allowed complacency to take root. Damningly, they “don’t understand the full Innovation Equation, which is having both Innovative products and having Demand/Market Creation perfected,” he concluded after hinting that Cook may soon follow in Ballmer’s footsteps.

      Nonetheless, Ballmer remains in charge until a committee, which includes his predecessor Bill Gates, selects a new CEO. His reorganization and corporate realignment efforts are expected to continue apace.

      “I don’t see this as a repudiation of the ‘one Microsoft’ or the ‘devices and services’ strategy. Steve continues to be heavily involved in the company and in the selection of his successor. If anything I see it doubling down on the shift in Microsoft culture and business model,” said Cearley at Gartner.

      Cearly added, “We have to see who the successor is to see what real impact there will be on the strategy.”

      Vivek “Vic” Gundotra, former general manager of Platform Evangelism at Microsoft and the current senior vice president of engineering for Google, gets Chowdhry’s vote.

      Citing an April 17 research report from his firm, he wrote, “Vic is probably the only executive, who can bring the much-needed fresh perspective to Microsoft, while still having a deep understanding of Microsoft Culture. Vic is a perfect blend of being a Microsoft Insider and bringing a fresh perspective from Google.”

      Avatar
      Pedro Hernandez
      Pedro Hernandez is a contributor to eWEEK and the IT Business Edge Network, the network for technology professionals. Previously, he served as a managing editor for the Internet.com network of IT-related websites and as the Green IT curator for GigaOM Pro.

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×