News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
You are here: Home / Enterprise I.T. / Should Microsoft Consider Co-CEOs?
Is your endpoint data protected?
Do Microsoft Earnings Call for Co-CEOs?
Do Microsoft Earnings Call for Co-CEOs?
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
OCTOBER
25
2013



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:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Protect 100% of your Data The prevalence of laptops and mobile devices in the enterprise makes corporate data increasingly vulnerable to loss and breach. And yet, workforce productivity is now inextricably linked to mobility. Click here to access the white paper "Top 10 Endpoint Backup Mistakes" to learn more about how to confidently protect data across platforms and devices while also providing features designed to enhance the end user experience.
MORE IN ENTERPRISE I.T.
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Dairy Queen is known for its hot fries and sweet treats, but it just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
Intel Intros Lightning-Fast PC Processors
Call it extreme. Intel just took the covers off its first-ever eight-core desktop processor, which is aimed at hardcore power users who expect more than the status quo from their computers.
 
HP Previews ProLiant Gen9 Data Center Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 

Mobile Technology Spotlight
Samsung Maps Its Way with Nokia's 'Here' App for Galaxy Phones
Korean electronics giant Samsung has opted to license Here, Nokia’s mapping app -- formerly known as Nokia Maps -- for its Tizen-powered smart devices and Samsung Gear S wearable.
 
Google Successfully Tests Its Own Delivery Drone
While top technology companies are engaged in an "arms race" to develop drones that can quickly deliver goods to anyone anywhere, Google has revealed it successfully tested its own version.
 
Will iPhone Finally Catch Up with NFC Mobile Payment Ability?
Apple's latest version of the iPhone may have a mobile wallet to pay for purchases with a tap of the phone. The iPhone 6 reportedly is equipped with near-field communication (NFC) technology.
 

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 | CRM Systems | 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

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.