Friday, July 12, 2013

Microsoft Reorganization

Make no mistake about it Microsoft is in a world of hurt fighting for life in the mobile internet era of computing.  The reorganization announcement yesterday confirms the transformative nature of the effort being put forth in Redmond, WA.

http://news.cnet.com/8301-10805_3-57593289-75/steve-ballmer-remakes-microsoft-one-more-time/?part=rss&tag=feed&subj=News-Microsoft

The question that will remain unanswered for many months is whether the reorganization, even one that reduces energy-sapping internal turf battles, catalyzes any major, disruptive innovations, increased product velocity or newfound customer love to the company.

The launch of Windows 8 was not just an incremental change to Windows.  It was an effort by Microsoft to remain relevant in a world increasingly reliant solely on the internet for all goods and services.  The business models Microsoft have relied on for decades are dying and the company will die with it if it fails to change.

This one will be interesting to watch over the coming few years.  Can they innovate in meaningful ways to leapfrog their competitors such as Apple?  They may have to if the company is going to survive in the long term.  In the short term there is plenty of money in the bank so some gambles are possible, and major gambles as well.

While Microsoft was dominant, almost completely so, many of us were saying it would be healthy if we had real competition for Microsoft.  Now that the tables have turned isn't the same still true?  The market leader needs stiff competition to remain cutting edge and that translates in to more and often cheaper products for the consumer.  Good, good, good.

J.W. Gant

**UPDATE**

Excellent reading stating the opinions of an expert in corporate culture and the exact kind of changes Microsoft is attempting.  The bottom line?  Don't bet on success for Microsoft.
http://www.computerworld.com.au/article/521298/ballmer_chance_changing_microsoft_don_t_bet_it/?

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