The days of the old Microsoft expire
In February, Microsoft got a new CEO – the third in its 39-year history. They became Sathya Nadella. As we already reported, the first call of the Nadella to his employees was: «the Time is critical for both Microsoft and for the entire industry. But we will go to great success. Our task is to grow in the mobile world and in the world of cloud technology.»
Six months later, the company is ready with a new strategy and plans to again take a place among the fierce competition in the technological market.
Last week, Satya Nadella sent again a message to its employees, which describes in detail how he sees the future of the company. In this way the former Vice-President of cloud and corporate services of the company have hinted that Microsoft is going to break with the past and begin major changes in the work. Namely, the company will strengthen its strategy of «devices and services» aimed at «productivity and platform».
As himself said Nadella in an interview with TechCrunch, «devices and services» is the equivalent of what he constantly repeats, namely, «cloud services and mobile technology in priority» (cloud-first and mobile-firs). And the term «productivity and platform» is actually a new and unique things that Microsoft can contribute to the market.
The idea is to make something unique often matched with the simple fact that large technology companies are competing with a growing set of services, it happens that they start to look very similar to each other. Nadella wants to avoid that.
Nadella notes that Microsoft lives in a world of heterogeneity of platforms. With these words they reinforces the idea of the company to enter the market. This means that the company will seek to cover as many devices and software products companies will have to become comfortable for various platforms. But if Microsoft intends to compete on all platforms, as do many others, that will make Microsoft, not to be like everyone else?
According to Nadella, the company should make better apps not only for Windows phones, but for all operating systems. One of the main trumps is Microsoft Office, which can easily be used as a leading mobile applications. The success of Office for iPad is a good sign that, at least for now, the strategy of Nadella is correct. In the near future the version of Office is expected for Android.
But productivity is only one of the main goals of the company. Can it lead to the growth of Microsoft? In a sense, Yes. If Office 365 will be distributed to different platforms, the application can lead to an increase in users of other services from Microsoft and at the same time increase the user base of Windows Phone. And it’d also mean an increase in the number of developers that make their apps for it.
When we talk about clouds, it should be clear that the price per megabyte they quickly fell to nearly zero. Of course, one of the main reasons for this is the war between Microsoft, Google and Amazon.
Should I wait for this in the field of cloud computing? In accordance with Satya Nadella, the adoption of cloud computing happens so violently that we were in a situation where they become too accessible, cheap and widespread. Therefore, the major players in the market will continue to depress prices, and some of them will even play at a loss just to get more market share.
We have yet to figure out what will be the price drop, but to understand the market, it should be recalled that Amazon has recently released cloud-based service that offers business customers up to 200 GB for $ 5 per month.
In another market, such as Spotify, can not afford to reduce prices to avoid competition with Xbox Music because of Spotify costs are highly dependent on contracts with the record companies. But when we talk about «the cloud», companies which play the market, have tens of billions of dollars and can afford to undercut the market, provided that it will bring them dividends.
In a few words, Nadella says, as he sees the company in the future: responds quickly to market demands with better quality products and more competitive. This is no easy task. Not only because Satya will need to justify their own vision, but to convince more than 100,000 Microsoft employees to do the same. I wonder whether he will achieve success.