As Satya Nadella took over the helm at Microsoft, shares significantly increased and is trading by almost 2-year high, soaring about $55. In Ballmer’s term, shares slightly bounced between $24 and $30 per share. It appears that Microsoft is striking back.
During the administration of Gates and Ballmer, Microsoft remained satisfied and addicted to the revenues made by its cash-cow products’ legacy – Windows and Office. In terms of product innovation, the corporation is pressured as it lacks search option and social media.
Meanwhile, Microsoft has tried to play catch-up in search with Bing, however, the search engine was not able to raise the value in pulling users away from Google. Vista and Windows nearly shut down the Windows, and a lot of efforts were put into fixing the damage.
Windows 9 was skipped after the Windows 8 was released, and was followed by a number 9. Subsequently, the corporation does not share the affection of the Beatle for the Windows 9, or it wished to distance between the disturbed 8 and 10.
Microsoft’s Mobile Hardware
The undertaking of the corporation in mobile hardware was terrible. After the Nokia’s handset business was acquired, about $7.6 billion write-off resulted, along with the elimination of jobs amounting to 7,800. Thus, the Microsoft Mobiles division agonized with losses of almost $8 billion, with sales drops of 50% and lay-off about 8,000 staffs overall.
After Ballmer waived his leadership, most of the stakeholders were content. However, when Nadella was recognized as his successor, there were no response. Conversely, many have said that Satya was not a “household-word” executive at all.
Yet, Satya has been quietly transforming the corporation into an innovative Cloud-based. Under his management, Office 365 was introduced. It is a cloud based a lot like the legacy product that many benefits as it can be used in work and web hosting service known as “Azure” that currently competes with rivals, Amazon and Google.
Furthermore, his aim is to move the Microsoft to be the next major player in the IoT market, which is estimated to settle at $1.6 trillion in the next couple of years.
Under Gates and Ballmer’s management, a few believe that it was then described as combative and aggressive into PCs, including the previous Microsoft’s glory. On the other hand, Nadella’s leadership is different as it has taken a quieter move, highlighting futuristic goals.
Nadella’s approach with developers and competitors appears cooperatively, unlike with a hard-charging dictator. He has uttered a willingness to listen that has been the key missing from the corporation.
Outside-in to Inside-out
Satya has succeeded in moving Microsoft from an inside-out and top-down company culture, mainly on customer-focused, including employee-and-partner-friendly, and innovative in a very short period of time.
Apparently, the “empire” or Microsoft appears to strike back its own character, Obi-Wan Kenobi. It transforms the corporation to engage more on innovations and market-focused organization that look a lot like Jedi rather than the Empire.
A Better Transformation
With Nadella’s leadership, the Microsoft’s expectations for sales and profit were soaring. In addition, offered products turned out to be more catchy on customers and developers especially the Windows 10.
Ahead of the potential move of Microsoft on Cloud, as well as in the Internet of Things, and Kindler, stockholders and capital markets are thrilled. It has created a kinder approach on partners, competitors and customers.
Many believe that Nadella’s two-year performance is positive. CNN Money even directly posed the question, “Is Microsoft CEO Satya Nadella better than Bill Gates?”
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