IMHO that was the most intriguing question raised after Satya Nadella’s appointment as the new CEO of Microsoft. This was also the only question mark hanging over this decision from the future of Microsoft point of view. In other regards there was just only one serious warning (IMHO again): Kedrosky [Bloomberg] to Microsoft: Stop Killing Partners (see embedded below). Otherwise the unanonimous opinion was that Satya Nadella as CEO and John Thompson as chair, with Bill Gates now going to be involved at the product level and Steve Ballmer just taking a seat on the board (both even compensated by an upcoming in March new director on the board, G. Mason Morfit from ValueAct Capital, representing the activist shareholders advocating break-up/spin-off moves), as the new top-level setup is indeed not only the best but the only possible thing for the huge and complacent software company (note that Nadella is not referring to Ballmer’s “devices and services” mantra, it’s gone).
Inherent to this companion post: John W. Thompson, Chairman of the Board of Microsoft: the least recognized person in the radical two-men shakeup of the uppermost leadership [‘Experiencing the Cloud’, Feb 6, 2014]. Without reading that misunderstandings like Nadella, Gates: Right Team For Microsoft? [InformationWeek, Feb 6, 2014] will be rampant, despite the reality that everybody should talk about the Nadella-Thompson combo as the uppermost leadership. Keep in mind also that out of the current 10 directors on the board (with Morfit 11) of Microsoft 8 (with Morfit 9) are independent directors (i.e. representing the vast majority independent shareholders), and only Gates and Ballmer are remaining as non-independent ones, representing their joint, somewhat more than 8% stake in Microsoft plus that of existing and the still loyal ex-softies (if any). So both of them could quite easily be outvoted … etc.
The upcoming new director, Morfit will specifically (“actively”) advocate the reduction of focus on Windows and the acceleration of efforts to unchain products and services from the operating system. In fact he had an agreement for regular meetings with “selected directors and management to discuss a range of significant business issues” back in August 30, 2013. Note also that he will join the board in March which is actually the time when the next fiscal year plan is presented and approved by the board. This is within the full fiscal year planning process, mainly consisting of the so called MYR (MidYear Review), PRISM (PRIority Setting Meeting), and WWSMM (WorldWide Sales & Marketing Memo) phases. Note as well that for the new CEO appointment this date was the very last one, as the PRISM, preceding the board approval, should be headed by the next fiscal year CEO.
Key words and phrases describing the essence of this post:
Microsoft complacency
Satya Nadella as CEO
John Thompson as chair
Bill Gates as technical advisor
Microsoft break-up
Microsoft spin-offs
Stop Killing Partners
consumer and business computing
Microsoft enterprise business
Microsoft consumer business
Microsoft as “mobile-first, cloud-first” company
the notion of the modern enterprise
removing obstacles to innovate
Gates as a product person
new activist director on the board of Microsoft
thriving in a mobile and cloud-first world
zero in on unique contributions
set of high-value activities
empowering users and organizations to “do more” as Microsoft’s core value
product innovation not compartementalized by consumer and business
Satya Nadella: His first [pre-recorded by MS] interview as CEO of Microsoft [Microsoft Feb 4, 2014]
Satya Nadella’s first interview as CEO of Microsoft, at the company’s campus in Redmond, Wash. Learn more about Satya at http://msft.it/msceo
Watch also:
- Highly recommended Susan Hauser [CVP, EPG Group of Microsoft] interviews Microsoft CEO Satya Nadella [Microsoft, Feb 4, 2014; published on Microsoft Youtube channel, Feb 5, 2014]: [Microsoft, Feb 4, 2014: “Satya Nadella is a strong advocate for customers and partners, and a proven leader with strong technical and engineering expertise. Nadella addressed customers and partners for the first time as CEO during a Customer and Partner Webcast event.”]
Microsoft CEO Satya Nadella speaks with Susan Hauser in front of a group of customers and partners about his background and the opportunities he sees for the company’s continued growth and innovation.
[Contributor Profile: Susan Hauser, Corporate Vice President,
Enterprise and Partner Group, Microsoft]
As a teaser Q: [6:43] How do you think about consumer and business, and how do you see them benefiting each other?
A: You know, one of the things that when we think about our product innovation, we necessarily don’t compartementalize by consumer and business, we think about the user. In many of these cases, what needs to happen is experiences. That’s for sure have to have a strong notion of identity and security, so I.T. control, where it’s needed, still matters a lot, and that’s something that, again, we will uniquely bring to market. But it starts with the user. The user obviously is going to have a life at home and a life at work. So how do we bridge that as there more and more of what they do is digitally mediated? I want to be able to connect with my friends and family. I also want to be able to participate in the social network at work, and I don’t want the two things to be confused, but I don’t want to pick three different tools for doing the one thing I want to do seamlessly across my work and life. That’s what we are centered on. When we think about what we are doing in communications, what we are doing in productivity or social communications, those are all the places where we really want to bridge the consumer and business market, because that’s how we believe end-users actually work. [8:01]
Read also:
- Microsoft Names Nadella CEO: New Era or New Error? [BARRON’S, Feb 4, 2014]
- Facebook or Microsoft: Whose Dominance [i.e. Monopoly] Will Last Longer? [The New Yorker, Feb 4, 2014]
- Microsoft breakup talk starts [IOL, Feb 4, 2014]: “Jettisoning units such as Xbox video-game consoles and the Bing search engine … should go further by also splitting off Windows and smartphones to focus on providing services to business customers … Eighty percent of the value of Microsoft is on the enterprise side and it’s not being valued that way today. The consumer side of the business gets a disproportionate amount of attention. … Shareholders may find an insider advocate in Mason Morfit, the president of activist investing firm ValueAct Holdings LP. Morfit, who’s set to join Microsoft’s board in March, wants the company to reduce its focus on Windows and accelerate efforts to unchain products and services from the operating system”
- Top 5 items on new Microsoft chief’s to-do list [Associated Press, Feb 5, 2014]: “ … some of the most pressing items on Nadella’s to-do list as he reshapes Microsoft into a “mobile-first, cloud-first” company: Integrate Nokia’s mobile device business … Fix Windows and unite the company’s various operating systems … Set a hardware strategy … Pick a management team … Work with the board, including Bill Gates …”
- Microsoft’s new CEO gets handsome pay package [USA TODAY, Feb 4, 2014]: “Overall, he could receive about $18 million as a first-year CEO, more than double what he received as head of the Microsoft’s cloud computing operation in 2013.”
Highly recommended follow-up: Nadella’s Speaks as CEO: Bloomberg West (02/04 video) [Bloomberg TV, Feb 4, 2014] (only the first [18:10] long out of total [41:55] )
Feb. 4 (Bloomberg) –- Full episode of “Bloomberg West.” Guests include Habit Design’s Michael Kim [former Microsoft], Kilbourne Group’s Doug Burgum [former Microsoft], Department of Health and Human Services’ Kurt Delbene [former Microsoft], FCC’s Jessica Rosenworcel, Kapor Center’s Nicole Sanchez, Code2040’s Laura Weidman Powers, Bloomberg Contributing Editor Paul Kedrosky and Bloomberg’s Megan Hughes. (Source: Bloomberg)
Next the details are coming in the following sections:
ICT industry reports
Reuters reports
Bloomberg reports
Microsoft video text messages for the world and its employees
1. ICT industry reports:
Microsoft names Satya Nadella CEO [Computerworld [of IDG] YouTube channel, Feb 4, 2014]
Microsoft has named Satya Nadella its next CEO. The company’s cloud and enterprise chief, Nadella will replace Steve Ballmer after a five-month search. [Nick Barber IDG News Service]
Short Take: Satya Nadella’s cloud priorities for Microsoft [Network World Videos [of IDG] YouTube channel, Feb 4, 2014]
Keith Shaw chats with Network World’s Brandon Butler about Satya Nadella, who was named the new CEO of Microsoft on Tuesday. Butler discusses the challenges and opportunities for Microsoft in the cloud market with Nadella now in charge.
CNET News: Microsoft names Satya Nadella as CEO [CBS News via CNET YouTube channel, Feb 4, 2014]
Microsoft didn’t have to look far in its six-month search for a new CEO. The company has tapped Satya Nadella to replace Steve Ballmer. Nadella, who has been at Microsoft for 22 years, will become the third CEO in Microsoft’s four-decade-long history. As CNET’s Kara Tsuboi reports, Microsoft’s new chief faces some serious challenges
Inside Scoop: Why Microsoft named Satya Nadella CEO [CNET YouTube channel, Feb 4, 2014]
In this Inside Scoop, CNET’s Kara Tsuboi and Executive Editor Charlie Cooper discuss Microsoft’s new CEO, who replaces the outgoing Steve Ballmer. Hear why Satya Nedella is right for Microsoft, why Microsoft’s job is right for him.
Analysis: Satya Nadella is Microsoft’s new CEO [GeekWire [of Seattle, WA] YouTube channel, Feb 4, 2014]
It’s a historic day at Microsoft: Satya Nadella is in as CEO, Steve Ballmer is officially retired and Bill Gates is set to spend more time on the Redmond campus. GeekWire’s Todd Bishop and John Cook analyze the big news and talk about Microsoft’s future. More here: http://www.geekwire.com/2014/analysis-new-ceo-bill-gates-means-microsofts-future/
A tribute to Microsoft’s Steve Ballmer [The Verge YouTube channel, Feb 4, 2014]
With Satya Nadella officially Microsoft’s new CEO, it’s time to say goodbye to one of the most enthusiastic personalities in technology. Make no mistake, he will be missed. A loving tribute. Video by Billy Disney.
10 Ways CEO Satya Nadella Should Change Microsoft, Business, Culture [eWeek, Feb 4, 2014]
Limit Gates’ Influence
Stop Pretending Windows 8 Works
Become More Hardware-Centric
Fix Xbox One Flaws
Spend More Time in the Clouds
Strongly Question the Nokia Play
Get Away From Bing
Become Smaller, More Agile
Announce Windows 9 Sooner Rather Than Later
Prove It’s a New Microsoft
Nadella seen as best choice for Microsoft’s new CEO… except in one crucial area [BGR, Feb 4, 2014]
Satya Nadella brings technical skill and enterprise strength, but what’s the consumer story? [Ars Technica, Feb 4, 2014]
…
The late 2000s were characterized by Microsoft dropping the consumer ball. The company didn’t notice that the iPhone had made the smartphone a mass-market, consumer device, and the company did not appear to anticipate that the smartphone’s success in the consumer space would in turn lead to success in the enterprise space—even though this kind of cross-pollination is a large part of what made Microsoft the behemoth it is. The same story was repeated with the release of the iPad and the consumer-oriented tablet.
There is pressure from Wall Street for Microsoft to abandon the consumer market. Sell off Xbox [regarding that see also Phil Spencer: Microsoft's New CEO Supports Xbox One [Cinema Blend, Feb 4, 2014]], Nokia, Bing, and retreat to the cozy confines of the enterprise market and become another IBM. I would argue that this is a mistake. Should Microsoft abandon the consumer market, the next generation of school-leavers will be raised on Google Apps, iPads, Chromebooks, and OS X.
This won’t merely disrupt Windows on the desktop. It will damage the long-term viability of Office, and beyond that, of Windows on the server as a development platform. This is not to say that these businesses will evaporate entirely, but they’ll be greatly diminished.
Importantly, Nadella appears to recognize this. At the company’s 2013 Financial Analyst Meeting, Nadella said, “This notion that this is an enterprise product and this is a consumer product I think is not the way we will approach things. We’ll think about these products as sort of meeting end user needs and enterprise IT needs, and how to balance that.”
But recognizing the duality is one thing. Responding appropriately to it is another. Making sure that Microsoft doesn’t make the same mistakes, and that it actually leads the consumer space rather than belatedly following others, will require strong, consumer-focused voices and leadership within the company. It’s not surprising that Microsoft’s new CEO does not cover all these bases. It’s unlikely anyone could, such is the diversity of what Microsoft does.
With Nadella’s promotion, it’s not entirely clear where this consumer focus and understanding will come from. Microsoft may be pinning its hopes on a new more active role for Bill Gates. Gates has stepped down as chairman (replaced by John Thompson, formerly of Symantec) but will now spend up to one-third of his time working with product groups and defining the “next round of products.”
But whether Gates can provide this guidance isn’t so clear. In broad strokes, Gates’ Microsoft was an early pioneer of both tablets and smartphones (and even smart watches). In each case, however, the company failed to adapt those early visions to accommodate new technology and new consumer preferences. Admittedly, Gates wasn’t involved in the day-to-day running of the company when these oversights were made, but even as chairman, one would think that he could have pointed out that Microsoft was missing a trick—assuming he recognized it.
Satya Nadella is a good choice for Microsoft CEO, and while it’s day one on the job, he’s so far saying the right things: recognizing the importance of the consumer space, promoting a “mobile first, cloud first” view where devices are important and where hardware, including Nokia, is part of Microsoft’s future. Wretched cliché as it may be, only time will tell if Nadella has what it takes to move the company forward.
The biggest Microsoft question: What about Bill? [Gigaom, Feb 4, 2014]: “… Make no mistake, Nadella is a great choice as CEO. I’m just not sure he needs the company co-founder and former CEO as a shadow.”
Satya Nadella at the Accel Partners Symposium [SiliconANGLE YouTube channel, Feb 2, 2014]
Microsoft today announced Satya Nadella as the new CEO of Microsoft. We had reported on Friday last week that Sundar Pichai from Google was another top consideration thanks to his firsthand knowledge of the increasingly influential consumer web, but it was Nadella that won out in the end.. Nadella is known for his experience in the enterprise, helping to rework much of Microsoft’s infrastructure for long-reaching products including Bing and Xbox. But is Nadella too safe of a choice for Microsoft? Would an outsider like Pichai have been better suited to lead Microsoft into the new consumer web?
Microsoft, like its peers and rivals in the industry, is betting big on the modern data center, but with Nadella at the helm, is the Redmond company landing on the wrong side of the cloud? Is this too much of an analog play and not enough of a shake-up play?
In conjunction with the announcement, Microsoft founder Bill Gates will step down from his position as Chairman of the Board and be replaced by our own SiliconANGLE theCUBE alum John Thompson. Gates is allocating a third of his time to mentor Nadella. The duo has much to discuss, reshaping Microsoft for the data center of the future. Cloud services remains at the center of an industry-wide revolution, and Nadella’s already shared his thoughts on the subject.
Just this past summer we had Nadella on theCUBE at the Accel Partners Symposium, live from Stanford University. Nadella discussed with theCUBE host Jeff Kelly the notion of the modern enterprise: a re-imagination of what infrastructure means and what applications mean inside of the enterprise. According to the new chief, there is a tectonic shift happening in the enterprise, and Microsoft is a part of that shift. From a business perspective, a key to infrastructure is being in touch with the applications.
“We’re building a new operating system for the modern enterprise to be able to deploy these modern applications. That is how I conceptualize it,” Nadella stated.
The four mega trends constitute the future of a modern enterprise infrastructure. But that can make for an awfully complex public, private and/or service provider cloud. So how does Microsoft and Nedella approach that problem of complexity?
Nadella says to start with the design point — public, private and service provider cloud. He believes it’s the true fruition of distributed computing.
“So these four things, identity, management, virtualization and application platform I think is the co-investment you’ve got to make to help enterprises truly adopt the cloud while its complex but you have to tame the complexity,” Nadella explained.
So what does that mean for Microsoft? Is Nadella the man to lead them into the consumer web and the Internet of Things? It feels like a bit of a safe bet for Microsoft. How can that be for a Fortune 50 company who just reported a killer? As our Editor-in-Chief John Furrier reported last Friday in his Breaking Analysis segment, it’s about getting the data right.
Buried in the news of Nadella being named CEO is the news we mentioned above that John Thompson will be the new Chairman of the Board. Interesting tidbit, when on theCUBE in 2011 Furrier asked Thompson about the “middle fat part” developing within the market as it relates to real-time data. Given this consumer-driven market powered by the Internet of Things, Thompson hints at his own vision for Microsoft, one that rings true nearly three years later as he works closely with Nadella on Microsoft’s board:
“Our focus is on the global 2000. They have one thing in common, performance and uptime sensitive. We think this market is about a $1.7-$1.8 billion market. We have literally barely scrapped the surface on that. This is a phenomenon that we think will only catch more wind in its sails,” said Thompson.
2. Reuters reports:
From: Microsoft names India-born Nadella as next CEO, Gates to advise on technology [Reuters edition in India, Feb 4, 2014]
Microsoft Corp named 22-year company veteran Satya Nadella as its next chief executive officer on Tuesday (February 4), and said co-founder Bill Gates would step down as chairman and advise the new CEO on technology, marking an epochal change of control at the company that drove the PC revolution.
Nadella, a 46-year old born in India who led the creation of Microsoft’s Internet-based, or “cloud” computing services, is only Microsoft’s third CEO in 39 years, taking over from Steve Ballmer, who inherited the job from Gates in 2000.
The move ends a five-month search process at the Redmond, Washington-based company, triggered by the August announcement of Ballmer’s decision to retire. That was longer than many investors had expected.
Gates said Nadella’s experience in cloud computing made him the right man to lead Microsoft, as the company struggles to find its feet in the new arena of mobile computing. As he relinquishes the chairman’s title, Gates will stay on the board and assume a new role as technology adviser to Nadella.
Shares of the world’s largest software maker were up 0.2 percent at $36.54 on the Nasdaq on Tuesday morning.
Nadella, who describes himself as a cricket and poetry lover, called the appointment “humbling” in an email to the company’s employees. In a videotaped statement he said he would focus on “ruthlessly” removing any obstacles to innovation at the company.
Nadella named Microsoft CEO, Gates nearby [Reuters YouTube channel, Feb 4, 2014]
Microsoft veteran Satya Nadella will have to find a way to re-invent the 40 year old software giant as its core businesses continue to erode and founder Bill Gates stays on in the newly created role of technology advisor. Bobbi Rebell reports.
Transcript:
Satya Nadella’s new job is a big one- as only the third CEO in Microsoft’s almost four decade history- he takes over at a critical time- and he himself makes it clear in this Microsoft video- he won’t put up with anything that gets in his way:
SOUNDBITE: SATYA NADELLA, CEO, MICROSOFT (ENGLISH) SAYING: “The first thing I want to do and focus on is ruthlessly remove any obstacles that allow us to innovate.” One obstacle, some say, was Bill Gates in his role as Chairman. He’s stepping down – but says he will now spend one third of his time advising Nadella on technology.
A good move all around says analyst Patrick Moorhead. SOUNDBITE: PATRICK MOORHEAD, PRESIDENT AND PRINCIPAL ANALYST, MOOR INSIGHT AND ANALYSIS (ENGLISH) SAYING:
“He’ll have a less powerful role in terms of managing the business of the board but he is narrowing the scope in on something I don’t think anybody can argue with, in that he is going to give insights to products and at its core, Gates is a product person.”
That’s good because products are a big problem. For example, the company is still struggling to find its feet as mobile computing evolves.
SOUNDBITE: PATRICK MOORHEAD, PRESIDENT AND PRINCIPAL ANALYST, MOOR INSIGHT AND ANALYSIS (ENGLISH) SAYING:
“You have Apple, Samsung and Google who are gaining a ton of share and a ton of mindshare for the future and I think Nadella needs to take a hard look in the mirror and really evaluate whether Microsoft can win there.”
See more opinion from him in Gates will have a less powerful role – Patrick Moorhead (6:10) video
They also missed the boat on social media- says Bruno Del Ama- who runs the Global X social media Index fund:
SOUNDBITE: BRUNE DEL AMA, CEO, GLOBAL X FUNDS (ENGLISH) SAYING: “Tremendous amount of growth. Very difficult to do organically and so if they want to do something there in a meaningful way they probably have to acquire.”
Microsoft has also been facing a slow erosion of its PC-centric Windows and Office franchises.
Investors have been clamoring for a big move- and a break up makes sense says Chris Baggini of Turner Investments.
SOUNDBITE: CHRIS BAGGINI, SENIOR PORTFOLIO MANAGER, TURNER INVESTMENTS (ENGLISH) SAYING:
“I think he has to split the company up. It’s really a mishmash of very mature businesses and some growthier businesses and unfortunately we’ve seen this before where the more mature businesses languish with very low growth rates and the growthier businesses really don’t get valued the way they should. So they have a data center business which is very strong, they can break out their consumer business and separate that out and leave an enterprise business which is a very strong cash flow business.” Shares were slightly higher on the official announcement- the stock had rallied when rumors of Nadella’s promotion leaked last week.
Satya Nadella: Microsoft still “very relevant” [Reuters YouTube channel, Feb 4, 2014]
Microsoft’s new CEO Satya Nadella stresses the Microsoft software ‘experience,’ as he discussed plans for new hardware in the form of devices and services. Rough Cut (no reporter narration)
Breakingviews: Microsoft’s disappearing old guard [Reuters TV YouTube channel, Feb 4, 2014]
Feb. 4 – Bill Gates is no longer chairman and the company has named a new CEO. Breakingviews columnists, Rob Cox (also Global Editor) Robert Cyran and Jeffrey Goldfarb (also Assitant Editor) discuss why these changes are an important signal for the future of Microsoft.
At the end of the discussion they are asking:
Will Satya Nadella finally break up Microsoft?
Tweet us your thoughts @Breakingviews
Microsoft founders recede into middle distance [by Robert Cryan on the Breakingwiews blog of Reuters, Feb 4, 2014]
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Microsoft’s founding fathers are finally receding into the middle distance. Satya Nadella’s experience makes him a solid choice to succeed longtime Chief Executive Steven Ballmer. Better still, he will have greater room to maneuver as Bill Gates steps down as chairman. Nadella will need to grapple with his predecessors’ bad decisions, like the Nokia deal, and he’s unlikely to pursue a breakup. But he can focus on what the company does best.
While many candidates entered the frame, it was always going to be a difficult post to fill. Microsoft spans everything from its omnipresent operating system to enterprise software to consumer hardware. It’s also threatened by upstarts and a shift in technology away from PCs. Finding a manager that understands technology, all these markets and has skills in revitalizing a mature behemoth was close to impossible.
Worse, the decision to buy Nokia’s handsets arm for $7.2 billion in the midst of the search showed that Microsoft’s board was wedded to the sprawl built by GATES AND BALLMER. Few credible outsiders wanted to step into a position where they had little say over the company’s direction.
In this light, Nadella’s choice is probably as good as the company could make. He has worked for Microsoft since 1992, so he knows the place. His most recent task was to run Microsoft’s cloud and enterprise group. This is one of the fastest growing divisions at Microsoft and represents the company’s future – selling software on demand to companies. He doesn’t have sales experience or much interaction with investors, which is important for a $303 billion market cap company. But Microsoft’s bench has enough depth to make up for these shortfalls.
The bigger question is where Nadella will take Microsoft. He didn’t give many hints in his opening memo to employees. The right course would be to focus on enterprise software, which is what Microsoft does best. A breakup or spinoff of the consumer and hardware operations would be welcome. But with Ballmer still on the board and holding some 4 percent of the company, and Gates remaining as the board’s technology adviser to “devote more time to the company,” such radical redrawing will be hard to accomplish any time soon.
But the message is unmistakable. The old guard is slipping into the background. That gives Nadella room to slowly turn Microsoft toward a more focused, and potentially valuable, future.
3. Bloomberg reports:
Microsoft Names Satya Nadella CEO, John Thompson Chair [Bloomberg YouTube channel, Feb 4, 2014]
Feb. 4 (Bloomberg) — Bloomberg News’ Matt Miller reports that Microsoft has promoted Satya Nadella to CEO, while John Thompson assumes Bill Gates’ role as Chairman of the Board on Bloomberg Television’s “In The Loop.”
Reporting related to that:
- Microsoft’s Nadella Named CEO to Transform PC Pioneer [Bloomberg, Feb 5, 2014]: “ ““He’s really the complete package — he has incredible intellect but he also combines that with a deep curiosity and willingness to learn,” said Doug Burgum, who sold business-software developer Great Plains to Microsoft in 2001 and oversaw Nadella while at the Redmond, Washington-based company. … Nadella keeps an eye on the moves of nimbler startups and has pushed Microsoft executives to learn from what people outside of Redmond are doing, a person with knowledge of his management approach has said. At a technology conference in Paris in December, he spent time with local startups like video-on-demand company Video Futur Entertainment Group SA.”
- Microsoft Signals New Era With Thompson as Chairman [Bloomberg, Feb 4, 2014]: “ “Thompson’s going to be a major voice for the company,” James Staten, an analyst at Forrester Research, said in an interview. “They wouldn’t have made him chairman, if he didn’t have strong opinions about how to drive the company forward. And Satya is looking for strong partners on the board.” … Thompson and Nadella will oversee a transition to a new organizational structure and integrate the $7.2 billion acquisition of Nokia Oyj (NOK1V)’s handset unit. The management transition at Microsoft follows the worst decline on record for personal computers in 2013, when shipments dropped 10 percent and are projected to languish through 2017. Thompson knows what it’s like to be at the head of a struggling incumbent. While at Symantec in 2005, he orchestrated the ill-fated $10.2 billion purchase of Veritas Software Corp., in an effort to push into data storage. When Thompson stepped down as CEO four years later, Symantec was contending with slowing growth amid an economic downturn and rising competition. … Thompson likes to tell people he spent “27 years, 9 months and 13 days at IBM” before joining technology security company Symantec as CEO in 1999. He took the company from $600 million to $6 billion in sales over his decade-long tenure, before stepping down in 2009. … A new director set to join the board next month is Mason Morfit, president of activist shareholder ValueAct Holdings LP. He’s eager to see Microsoft emphasize its business software and Internet-based cloud services rather than consumer technology, people familiar with the situation have said.”
- Microsoft Gets Style Shift With Nadella Replacing Ballmer [Bloomberg, Feb 5, 2014]
- Microsoft CEO Pick Leaves Losers Grappling With Fallout [Bloomberg, Feb 5, 2014]: “With Microsoft’s board disclosing today that it picked Satya Nadella as CEO, that leaves internal candidates such as Executive Vice President Tony Bates and Chief Operating Officer Kevin Turner among those who failed to get promoted, people with knowledge of the search have said. Stephen Elop, the former CEO of Nokia Oyj who was set to join the software maker after it closes a $7.2 billion deal for Nokia’s handset unit, was also on the shortlist, among others. … The CEO candidates were informed that they didn’t get the role last week … Turner plans to stay at the Redmond, Washington-based company, said a person close to the COO. And while Bates and Elop both have ambitions to be CEO, they are also set to continue at Microsoft for the time being since success in their current jobs may be the best way to attract other offers, said people close to the executives, who asked not to be identified because the information is private.”
- Who Is Satya Nadella and Why Is He Microsoft’s CEO? (video) [Bloomberg TV, Feb 3, 2014]: “Feb. 4 (Bloomberg) — Kurt Delbene, former president at Microsoft Office, and Bloomberg Contributing Editor Paul Kedrosky discuss Microsoft’s choice of Satya Nadella as its new CEO on Bloomberg Television’s “Bloomberg West.” “
- Nadella as CEO Good for Microsoft’s Future: Subotky (video) [Bloomberg TV, Feb 4, 2014]: “Feb. 4 (Bloomberg) — Jason Subotky, a portfolio manager at Yacktman Asset Management Co., talks about Microsoft Corp.’s decision to name Satya Nadella chief executive officer. Nadella will replace Steve Ballmer effective immediately after a five-month search, Microsoft said in a statement today. Subotky speaks with Scarlet Fu, Jon Erlichman, Matt Miller, Paul Kedrosky and Anurag Rana on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)”
- How Can Nadella, Gates Shape Microsoft’s Future? (video) [Bloomberg TV, Feb 4, 2014]: “Feb. 4 (Bloomberg) — Kurt Delbene, former president at Microsoft Office, and Bloomberg Contributing Editor Paul Kedrosky discuss how the shakeup in Microsoft’s c-suite can shape the future of the company on Bloomberg Television’s “Bloomberg West.” ”
Microsoft Preps Insider Satya Nadella for CEO Promotion [Bloomberg YouTube channel, Jan 31, 2014]
Jan. 31 (Bloomberg) — Bloomberg West Editor-At-Large Cory Johnson discusses reports that Microsoft will promote enterprise and cloud chief Satya Nadella to CEO on Bloomberg Television’s “Bloomberg Surveillance.”
Reporting related to that: Microsoft Said to Be Preparing to Make Satya Nadella CEO [Bloomberg, Jan 31, 2014]
Microsoft Prescription: More Bill Gates? [Bloomberg YouTube channel, Feb 3, 2014]
Feb. 3 (Bloomberg) — Bloomberg Businessweek’s Peter Burrows and Crawford Del Prete, executive VP & chief research officer at IDC, discuss the possible future role of Bill Gates at Microsoft on Bloomberg Television’s “Bloomberg West.”
Reporting related to that:
- Microsoft’s New Power Isn’t Gates, Nadella: Walia (video) [Bloomberg TV, Feb 3, 2014]: “Former Microsoft Executive Hardeep Walia discusses the search for a new Microsoft CEO on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)”
- Microsoft Begins New Era With Nadella, Gates (video) [Bloomberg TV, Feb 3, 2014]: “Feb. 4 (Bloomberg) — Bloomberg senior West Coast correspondent Jon Erlichman breaks down the management changes at Microsoft on Bloomberg Television’s “Market Makers.” ”
- Bill Gates to Assume Role as Technology Adviser [Bloomberg TV, Feb 4, 2014]: “Feb. 4 (Bloomberg) — Microsoft named Satya Nadella CEO, tapping an insider steeped in business technology to speed turnaround at a software maker that helped usher in the personal-computing age only to be left behind as the world shifted toward the Web and mobile devices. Bloomberg Contributing Editor Paul Kedrosky, Bloomberg’s Matt Miller and Jon Erlichman speak on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)”
Kedrosky to Microsoft: Stop Killing Partners [Bloomberg YouTube channel, Feb 4, 2014]
Feb. 4 (Bloomberg) — Bloomberg Contributing Editor Paul Kedrosky and senior West Coast correspondent Jon Erlichman discuss Microsoft’s track record of working with partners and the relationship between the new CEO and Chairman of the Board on Bloomberg Television’s “In The Loop.”
4. Microsoft video and text messages for the world and its employees (in addition to the pre-recorded interviews embedded in the beginning of this post):
Microsoft Chairman John Thompson on CEO Satya Nadella [Microsoft Feb 14, 2014]
John Thompson, Chairman of Microsoft Corporation, talks about the appointment of CEO, Satya Nadella.
<