Microsoft reboots again

[Rogifan]

Last year we had Ballmer's 'One Microsoft' devices and services strategy (and along with it a 2700+ worded memo to employees). One year later we get another extremely long memo from Nadella and devices and services is renamed mobile and cloud. If I worked for Microsoft I'd be a little worried about needing these long memos to communicate what Microsoft is all about. And then getting two of them within a year of each other.

http://www.microsoft.com/en-us/news/ceo/index.html

Seems to me things would be a lot clearer if Microsoft spun off its hardware business. Getting into the devices business is a distraction IMO. It's difficult to be both horizontal and vertical. I still think their Nokia purchase was more about saving Windows Phone platform than wanting to get in the phone hardware business. Spin off XBox, Surface and Windows Phone devices into a separate company and let Microsoft focus on what it does best - software and services.

 

[deluxeshredder]

Microsoft just can't stop "rebooting".

 

[maflynn]

I still think their Nokia purchase was more about saving Windows Phone platform than wanting to get in the phone hardware business.

Partly to save the platform and partly to mimic apple. They see the wisdom of a tightly integrated OS and hardware.

 

[Rogifan]

Partly to save the platform and partly to mimic apple. They see the wisdom of a tightly integrated OS and hardware.

That's the problem. Ballmer felt Microsoft needed to mimick Apple. I don't think Nadella does. Making a touch version of Office for iOS and Android first proves it.

It's interesting that this quarter Apple and Microsoft report earnings on the same day (July 22). I'm seeing some predictions of layoffs at Microsoft. I would not be surprised if they announce org changes and layoffs with their earnings release. I'm sure the stock will jump on that news as Microsoft is kind of bloated, but I'll bet if they announced a spinoff of their hardware business the stock would jump even more. I would not be surprise if within the next 5 years Microsoft sheds it's hardware business.

 

[jav6454]

Microsoft's Entertainment Division (the people that make X-Box and the likes) are their most profitable in terms of hardware. That alone should be a company.

I think Microsoft as a company has so much to offer if they focus on what brought them to their heights. That focus should be on software on many devices.

Although, it would be pretty much interesting to see a Windows line of laptops (branded by Microsoft's a la Apple style with their Mac line). You never truly know your software's potential until you mate it with extremely integrated hardware. This is what Apple has so far been doing; very well mind you.

Bringing Office to iPad and Android is great decision. Microsoft would have lost marketshare to other productivity apps out there seeing as they would have been alienating a vast majority of devices that are widespread use.

 

[triptolemus]

'Dat Memo!

D: Well, how did you know I wrote that memo?

MJF: How did I know you wrote that memo? Who else could write that memo, Davidson? That memo was famous. That memo was a masterpiece. Clear, concise, to the point. That was the best damn memo I ever read! In fact, that memo wasn't even a memo. That memo was literature.

D: Well, thank you.

MJF: You're welcome.

B: If you have finished your book report, could you explain what your point is?

MJF: The point is, we gotta be bold. That's my point.

 

[maflynn]

It's interesting that this quarter Apple and Microsoft report earnings on the same day (July 22). I'm seeing some predictions of layoffs at Microsoft. I would not be surprised if they announce org changes and layoffs with their earnings release.

I saw that and was surprised to a degree.
I guess Nadella is looking to sharpen its focus and cut out some of the bloat that creeps into an organization.

 

[roadbloc]

Nadella is new as CEO still. The fact that he still has changes to make in order shape the company how he desires it is hardly surprising.

 

[JackieInCo]

Microsoft announced today that they are cutting 18,000 jobs.

 

[satcomer]

Microsoft announced today that they are cutting 18,000 jobs.

I am starting to think they are trimming their Old Nokia staff and old Nokia workers.

 

[rdowns]

I am starting to think they are trimming their Old Nokia staff and old Nokia workers.

Likely but they said they'd do it over a year. Really bad move IMO. Why have people worry about their jobs for a year? Good people will leave. Do it all by the end of the summer and get back to business.

 

[Rogifan]

Likely but they said they'd do it over a year. Really bad move IMO. Why have people worry about their jobs for a year? Good people will leave. Do it all by the end of the summer and get back to business.

Yes, that's terrible. If you're going to lay people off the best way to do it is quickly. Otherwise you're just pissing all over company morale. Why would I want to give 100% if I didn't know whether I was one of the 18,000 or not?

 

[satcomer]

Likely but they said they'd do it over a year. Really bad move IMO. Why have people worry about their jobs for a year? Good people will leave. Do it all by the end of the summer and get back to business.

They will properly do the " trimming" in early December, just before the Holiday Season.

 

[smoledman]

If MS thinks that flogging Office and tiles will gain it success in mobile, they have more hard knocks coming. They have no taste or introspection to realize what they've done wrong and why the world has rejected them.

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Yes, that's terrible. If you're going to lay people off the best way to do it is quickly. Otherwise you're just pissing all over company morale. Why would I want to give 100% if I didn't know whether I was one of the 18,000 or not?

MS can't even do layoffs properly.

 

[Michael Goff]

If MS thinks that flogging Office and tiles will gain it success in mobile, they have more hard knocks coming. They have no taste or introspection to realize what they've done wrong and why the world has rejected them.

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MS can't even do layoffs properly.

The world has rejected them? That's what you're going with?

 

[Naimfan]

The world has rejected them? That's what you're going with?

Well, the mobile world has not exactly embraced Microsoft . . .

 

[Michael Goff]

Well, the mobile world has not exactly embraced Microsoft . . .

Well, yes, Microsoft isn't doing well in the mobile world. They might never do well in the mobile world. The idea that the entire world abandoned Microsoft, though, is laughable at best.

 

[Naimfan]

Well, yes, Microsoft isn't doing well in the mobile world. They might never do well in the mobile world. The idea that the entire world abandoned Microsoft, though, is laughable at best.

I agree with your last sentence.

However, in context, smoledman's comment is referring to mobile. To extrapolate from his comment, which specifically references mobile, that it applies to everything else Microsoft does, is not supported by his text.

 

[smoledman]

I agree with your last sentence.

However, in context, smoledman's comment is referring to mobile. To extrapolate from his comment, which specifically references mobile, that it applies to everything else Microsoft does, is not supported by his text.

Exactly, the world rejects Microsoft mobile attempts. Also MS refuses to engage in any introspection as to why. I bet you could put Steve Jobs(circa 2001) in charge of MS right now and he'd figure out a way to get them relevant in mobile within 3 years.

 

[thekev]

Likely but they said they'd do it over a year. Really bad move IMO. Why have people worry about their jobs for a year? Good people will leave. Do it all by the end of the summer and get back to business.

If the departments that will experience cutbacks are known, some of those guys might also apply for different positions within the same company.

 

[smoledman]

If the departments that will experience cutbacks are known, some of those guys might also apply for different positions within the same company.

Why would MS hire back somebody they just **********?

 

[thekev]

Why would MS hire back somebody they just **********?

I congratulate you on dodging the board's profanity filter. Anyway they're probably cutting certain teams. If they are going to cut a team and someone applies for a different position within the organization, why wouldn't they be considered for it? You are making the assumption that this involves 18,000 bad or mediocre employees.

 

[Michael Goff]

Why would MS hire back somebody they just **********?

They hired back a lot of the people they fired during their 5800 cut, but in different areas.

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I agree with your last sentence.

However, in context, smoledman's comment is referring to mobile. To extrapolate from his comment, which specifically references mobile, that it applies to everything else Microsoft does, is not supported by his text.

My bad.

 

[maflynn]

Why would MS hire back somebody they just **********?

Companies do that all the time, they let people go less on ability and more on numbers as things shake out they try to re-hire those that they want back