Amidst the cheers on the trading room floor that sent
Microsoft shares 9% higher on Friday, the tech world seems to have gotten its
wish. Steve Ballmer will leave
Microsoft's
CEO
chair within the next 12 months.
As one of the tech world's longest sitting CEO's and target for all things evil about
Microsoft it's easy to misread today's news.
Yes, he's leaving and yes he's been the guiding hand of
Microsoft through 3 major versions of windows, two game consoles and a cloud
strategy. But Microsoft CEO's don't operate
in a vacuum anymore and the company's reigns
are firmly held in check by a board of which Bill Gates is still the chairman.
There have been calls for a younger, more hip
CEO
who will drive Microsoft's new devices and services strategy and put Microsoft
on par with the Facebook's of the world.
The problem is, nobody relies on Facebook to run their
business applications. Social networks are
a just a tool in a larger business strategy.
One that Microsoft has admittedly been slow to adopt just like its
haphazard cloud strategy that was late to the game and confusing to its market.
Ballmer's evangelism for Microsoft often bordered on the
fanatical even in the face of opposition from the market but he never acted
alone. The departure of a number of
Microsoft execs and the recent reorganization of the company's business units
didn't happen without the board's blessing.
Microsoft may not be the lean, hip company it was back in
the days of Gate's tenure but it really can't be. Most business runs at least in part on
Microsoft products. That the company
has been able to maintain itself as the
standard by which all others (including open source) are judged is no accident.
If Ballmer can be blamed for anything it's an ever changing
mixed message and desperate bid to monetize anything even remotely connected
with Microsoft. In the grand scheme of
things it doesn't matter who sits in the CEO chair.
Microsoft now is what IBM was in the 1980's. Decent products but not very sexy.
In a recent conversation with a friend of mine, he suggested
a possible solution for Microsoft's stodgy, un-hip image.
Be like Toyota...
Toyota's Scion brand is specifically targeted at young
hipsters with a lineup of products no Camry owner would be caught dead in. That's smart.
The brand has successfully preserved the parent company's traditional
market share while attracting a younger demographic they wouldn't have
otherwise.
That's the direction Microsoft needs to move in. Let's face it, You aren't going to sell many Cadillac's
to the twenty something demographic.
Microsoft needs to separate itself from the consumer markets by placing
its consumer strategy in an abstraction.
Only then can Microsoft concentrate on its core business customers while successfully engaging consumer
markets. You can't have the same message
for both but if you separate the businesses you can have your cake and eat it
too.
