Nadella memo hints at big Microsoft product changes


"We will deliver digital work and life experiences that are reinvented for the mobile-first and cloud-first world," says Satya Nadella (MSFT - unchanged) in a lengthy memo. "We will reinvent productivity for people who are swimming in a growing sea of devices, apps, data and social networks."

Nadella suggests major strategic and cultural changes will be part of the package. "Organizations will change. Mergers and acquisitions will occur. Job responsibilities will evolve. New partnerships will be formed. Tired traditions will be questioned." That last line might be a shot at some of the criticized practices of the Steve Ballmer era.

Nadella adds Microsoft will "streamline [its] engineering process and reduce the amount of time and energy it takes to get things done." He promises engineers "will see fewer people get involved in decisions and more emphasis on accountability."

At the same time, Nadella affirms Microsoft's commitment to the Xbox, and argues technologies developed by the Xbox unit have strengthened Windows, Skype, and other products.

Microsoft has already shown a greater willingness to support rival platforms since Nadella became CEO in February, and has also shaken up its executive ranks. A massive reorg meant to strengthen cross-product collaboration was launched a year ago.

From other sites
Comments (16)
  • Jacob09481
    , contributor
    Comments (22) | Send Message
     
    I see X-Box's role in the Microsoft organization the same way as NASCAR is to Ford and GM. A fun little promotional endeavor that also spurs some very competition-focused R&D. Glad Nadella confirms he wants to keep it. Happily long $MSFT.
    10 Jul 2014, 11:33 AM Reply Like
  • Justin Jaynes
    , contributor
    Comments (3152) | Send Message
     
    I agree - I've seen very few well put together arguments regarding the Xbox. It's more of a "Xbox isn't really that great, it's my opinion it should be gone."

     

    Was long $MSFT, sold too soon.
    10 Jul 2014, 11:53 AM Reply Like
  • Deja Vu
    , contributor
    Comments (1774) | Send Message
     
    Gates put Satya in as a cats paw. But Satya, being a very wily pol, who owes all to political skill rather than any inherent ability, is going to break free of Bill and cast him out like a used tissue. I don't think Bill appreciates whom he is dealing with. Satya's political skills are formidable.
    10 Jul 2014, 12:22 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4385) | Send Message
     
    The more he shakes things up at Microsoft, the better. The memo is impressive. It lays out a path that the old arrogant Microsoft would fail miserably at. Only a Microsoft that truly is "customer obsessed" and humble enough to ask, not tell, the customer what he wants will be able to pull it off.
    10 Jul 2014, 01:01 PM Reply Like
  • techy46
    , contributor
    Comments (10688) | Send Message
     
    Microsoft needs to use Lumia, Surface and Xbox device product lines to offer a complete consumer and enterprise cloud and server based mobile experience. If their partner ODMs want to offer the same then the software pieces and service are available to all. Microsoft, like Apple and Samsung, can not offer all devices in all flavors but they can set the standards higher then the Dells and HPs have traditionally done. It's going to be real interesting to watch AT&T swallow DTV and Microsoft swallow Nokia. Who's going to offer the device that's the home game and media server proving a cloud VCR for content to mobile devices?
    10 Jul 2014, 01:52 PM Reply Like
  • Ruffdog
    , contributor
    Comments (2963) | Send Message
     
    MSFT
    11 Jul 2014, 08:53 AM Reply Like
  • Ongyou
    , contributor
    Comments (11) | Send Message
     
    For the love of all that is holy to developers, buy Xamarin already and give it to us for free with Visual Studio. Monopolize the IDE market and get other devs to use your products. And then keep expanding VS's capabilities to cover all manner of devices (home automation and more) in conjunction with modified device OS's and existing hardware (XBox One as home theater center).

     

    But be cautious of throwing everything in the cloud and becoming a giant PaaS/IaaS/SaaS company because the infrastructure cost will backlash for smaller businesses and individual users that are used to 3-5 year lifecycles at cost X instead of X/year. Case in point, Office 365 at $150/yr for a small business compared to $300 total for Office 2013. It may be more profitable to go XaaS for everything, but that's not necessarily what your customers (big & small) want....
    10 Jul 2014, 02:10 PM Reply Like
  • MarketDummy
    , contributor
    Comments (136) | Send Message
     
    Xamarin built onto VS would be sweet, but personally I'm thinking that Satya has even bigger plans for an "all devices" solution. How about an Xbox "app" for ios/android that runs any win (.NET) game? The framework is already on ARM so it's not a major step to make happen. Well, then, why not a "Windows" app that runs any .NET program on any device! That's what .NET should have been 10 years ago were it not for the Windows-only focus previously.
    10 Jul 2014, 03:49 PM Reply Like
  • june1234
    , contributor
    Comments (4043) | Send Message
     
    Were going to take the PC and rename it PC2 or son of PC.
    10 Jul 2014, 02:20 PM Reply Like
  • Island_Dweller
    , contributor
    Comments (619) | Send Message
     
    Even if his vision encounters difficulties, hindrances, and outright failures, you've got to admire his transparency compared to his predecessor.
    10 Jul 2014, 07:33 PM Reply Like
  • Shaduc
    , contributor
    Comments (2790) | Send Message
     
    Why I will not buy a Microsoft related product.

     

    No Microsoft Store (nor Best Buy) in Cn or HK for after sales service.
    10 Jul 2014, 09:41 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (12926) | Send Message
     
    Unless Microsoft gets serious and offer Office on Windows tablets for free, they will see the mobile platform slip from their nets. They already lost it and are clueless as to the reason. Google gives a lot for free with their tablets. Apple offers strong integration and apps shared on devices. Microsoft charges for the only reason to buy a Microsoft Tablet... Office. And not only that, it's a monthly fee. Uggghhh. Microsoft remains clueless.
    10 Jul 2014, 11:35 PM Reply Like
  • Shaduc
    , contributor
    Comments (2790) | Send Message
     
    "Google gives a lot for free with their tablets."

     

    With the Cn govt utter block of google.com services renders their OS products fairly useless!
    10 Jul 2014, 11:39 PM Reply Like
  • wil3714
    , contributor
    Comments (2264) | Send Message
     
    "Unless Microsoft gets serious and offer Office on Windows tablets for free, "

     

    Its already free, its been free
    11 Jul 2014, 03:54 AM Reply Like
  • toraji
    , contributor
    Comments (809) | Send Message
     
    Did you ever go to outlook.com? FREE office there al you need to have is a Microsoft account/email address.....
    11 Jul 2014, 09:10 AM Reply Like
  • Paul T. Lambert
    , contributor
    Comments (267) | Send Message
     
    Sounds as though they will be executing their vision, their strategy, their plans, and their employees.
    26 Jun 2015, 02:33 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs