Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Microsoft/Windows
Register for a certification exam.
Average Rating:
Rate this article:  
Do Microsoft Earnings Call for Co-CEOs?
Do Microsoft Earnings Call for Co-CEOs?

By Jennifer LeClaire
October 25, 2013 10:25AM

    Bookmark and Share
Redmond should probably consider bringing in heavy-hitters on the enterprise IT side and the consumer side in an effort to drive sustained growth on both sides of the corporate fence. Although Microsoft probably isn't considering co-CEOs to replace retiring chief Steve Ballmer, it’s almost certainly a prudent route.
 



Call it the Tale of Two Companies. Microsoft announced revenue of $18.53 billion for the quarter ended September 30, 2013. Net income was $5.24 billion. But how Microsoft drove those numbers gives the appearance of two companies operating inside one brand, with one far outshining the other.

Specifically, commercial revenue grew 10 percent to $11.2 billion while devices and consumer revenue grew 4 percent to $7.46 billion. Windows OEM revenue declined 7 percent on the consumer side while Surface revenue growth was a paltry $400 million. Microsoft is still painting a pretty picture, but is it time to change the paradigm of the C suite to balance the company’s growth?

“Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers,” said Steve Ballmer, chief executive officer at Microsoft. “Our new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices.”

The Nature of the Beast

We caught up with Rob Enderle, principal analyst at The Enderle Group, to get his take on the bifurcation of Microsoft and what the company should consider as it seeks a new CEO. He told us with a blended company like Microsoft there are going to be units that perform and units that don’t.

“Microsoft is one of the few companies that tries to do both enterprise and consumer business and virtually nobody is doing both well. It’s a black and white choice,” Enderle said. “You pick one and focus on it and whichever one you aren’t focusing on performs poorly.”

As Enderle sees it, fixing that problem isn’t just a Microsoft issue -- it's an issue for any company that tries to operate with Redmond’s breadth. He reminds us that Apple’s venture into the enterprise was one of Steve Jobs’ few failures during his last decade running the company. He called it the nature of the beast: it’s difficult to address both audiences successfully because they are just so different.

Breaking Up Is Hard to Do

With that in mind, should Microsoft consider the co-CEO model and bring in heavy-hitters on the enterprise and consumer side in an effort to drive sustained growth on both sides of the corporate fence? Enderle said he doesn’t think that’s the plan but it’s probably a prudent route.

“Both markets are unique enough and the companies that do well in both -- with Apple doing well in consumer and IBM doing well in the enterprise -- are focused on those specific markets. IBM didn’t do well in consumer and Apple never did well in IT,” Enderle said.

“So it showcases that if you are going to try to do both you need executive management that’s focused on the particular market and have the agencies underneath them to make that work. Given that example, Microsoft almost needs to turn into two companies,” he added.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Microsoft/Windows
1.   Microsoft Buys InMage Recovery Tech
2.   'Reinvent Productivity,' Nadella Urges
3.   Microsoft Revamps Office 365 Plans
4.   Windows 7 Ends Mainstream Support
5.   Another IE-Focused Patch Tuesday


advertisement
Review: Microsoft's Surface Pro 3
Is it a tablet and laptop replacement?
Average Rating:
Windows 7 Ends Mainstream Support
But extended support still available.
Average Rating:
Another IE-Focused Patch Tuesday
One critical for Internet Explorer.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Report: Chinese Hackers Hit U.S. Personnel Networks
Hackers from China broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees.
 
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.