Microsoft Breakthrough: The absence of mobile interconnection Ballmer opened a reorganization prescription

After missing the wave of mobile internet, the loss of monopoly advantage of Microsoft in the IT sector is not as big as before, the market value is not only by the old rival Apple sharply off, but also by the rising star of Google catch-up, Ballmer himself even last year by Forbes magazine as the worst CEO of the United States.

However, Microsoft is still a very profitable company, can make a net 6 billion dollars a quarter, but the absence of mobile Internet does bring it a deep crisis.

The biggest reorganization of Ballmer's time?

News of Microsoft's imminent mass restructuring has been abuzz over the past week.

Microsoft CEO Ballmer is likely to unveil his restructuring plan to Microsoft executives on July 1, according to AllThingsD6, the US technology blog, 24th. If the news is true, it will be the biggest internal "operation" that Ballmer has had in 13 years of Microsoft reins.

Many Microsoft executives are in the dark about the restructuring of the company. Ballmer only discussed the reorganization with his immediate subordinates and Microsoft board members. Some industry rumours suggest that Microsoft's restructuring could create four separate divisions, including business, hardware, applications and services, and operating system departments. At the same time, 3 Microsoft executives will be promoted to power centers, including server and Tool department President Satia Nadra, Skype Communications Department President Tony Betz, and Interactive Entertainment Department President Tang Matrick. In addition, Microsoft Online Services business President Lurkey and Windows Phone Business President Trie Meiersen role will be changed.

The reporter called Microsoft China's corporate communications director Licheng Snow, she said Microsoft China will not respond to market rumors, there is no news can be disclosed.

It is noteworthy that last October, Ballmer had proposed Microsoft "equipment + Services" in the new direction, so some insiders expect that Microsoft will be targeted to the positioning of the organizational structure, simplifying the organization or even a revolution to improve efficiency and responsiveness.

An investor who has long been interested in Microsoft's comments, in his view, is not groundless. "If the rumors are true, it means that Microsoft is aware of its deep crisis, wants to change, even if there is no restructuring, such rumors at least reflect the outside world of Microsoft's current anxiety and dissatisfaction." ”

Mobile Internet Absentee

"If it's not meaningful to make organizational changes, I'm afraid it's a new bottle of old wine," he said. "Senior Internet personage in the industry Xie that Microsoft's transition to meet the bottleneck, is not the implementation level of the problem, but the top strategic issues."

He argues that Microsoft's transformation faces many pressures, with the traditional windows and office business gradually declining to face the challenges of Apple's iphone, ipad and Google's Android smart terminals in terminals, especially in mobile.

Market Research institute IDC Statistics show that the first quarter of Android phone shipments of 162 million, market share of up to 75%, Apple iphone 37.4 million, iOS market share of 17.3%, and Windows Phone shipments of only 7 million, Market share only 3.2%.

The only consolation is that Windows Phone grew at its fastest pace, with Windows Phone shipping growing 133.3% per cent compared with the same period last year, while Android was 79.5%,ios 6.6%.

It's worth noting that, while Microsoft is trying to woo more vendors and expand the Windows Phone ecosystem, Nokia is still the absolute mainstay. According to Nokia's first-quarter results, Lumia mobile phones shipped 5.6 million units, which means Nokia contributed to the share of Windows Phone 80%, Windows Phone is still a fragile growth of the small ecology.

For Microsoft's current awkward position in the mobile Internet, Zhang, the chief executive of the media consultant, is somewhat saddened: "The Windows operating system itself is not bad, we have done the evaluation, the three operating systems, on security, the ease of application development, Windows is the best, the worst is Android." Moreover, Windows Monopoly PC market for many years, the market for Windows application development talent is the most, please an iOS development engineer monthly salary may be 30,000, looking for a Windows developer may be 5000 yuan on the line. ”

There is no shortage of products, but why is Windows Phone still in the doldrums?

In Zhang's view, Microsoft's crux lies in its inability to reverse traditional it thinking. "Mobile phone manufacturers in cooperation with Microsoft, all have to pay to Microsoft licensing fees, the specific amount of vendors are relatively confidential, but it is said that each Taiwan to pay more than 100 yuan, which is quite expensive, a 8 million pixel above the quality of the camera, the cost is only 30 pieces. "According to the details of ZTE's cooperation with Microsoft, which was disclosed by the former media, the licensing fee paid to Microsoft by each Windows Phone is 20-30 dollars."

"This is typical of the PC era, I sold you the system, you pay me, but the mobile internet era is not so play, Google up is free." Why pay for a company that is free? Zhang rhetorical question.

In his view, Google represents the Internet-style business model: Free strategy, Happy enclosure, gathered users to consider the profitability of the problem, and Microsoft is familiar with the traditional model is the charging model, selling a single earn a single, the gap between the two is huge.

To block Android, Microsoft, which is not on Windows Phone, has adopted a strategy to charge Android phones with patents, and Google's Android system involves Microsoft's patents, so even though Google itself doesn't charge manufacturers, But manufacturers need to pay Microsoft a 3-6-dollar license for each mobile phone, which is now the main revenue for Microsoft in the mobile Internet sector.

"Microsoft cannot assemble vendors, Windows Phone sales don't work, most app developers don't develop App,app for just 3% of the market, consumers don't pay, and manufacturers are less willing to do windows phone," said the investment community. This is a vicious circle. ”

Export, cloud computing

The absence of mobile internet has led to a break in Microsoft's dominance of the operating system in the PC era, and the market trend is that PCs are being replaced by mobile terminals.

Global PC shipments fell 14% per cent in the 2013-year quarter, the biggest drop in 20 years, while tablet sales soared by 142%, IDC data showed. Although Microsoft has also launched a tablet computer surface, but sales are dismal, market share is only 1.8%, and Windows Phone is a pair of boat.

According to Microsoft's latest quarterly earnings, although Microsoft's best-known product is the Windows operating system, Windows accounts for only 27.8% of Microsoft's revenue, less than 30%; Enterprise Services, the server and Tools Division (24.6%) and the business sector (30.8%) Created more than half the revenue, which is Microsoft's real cash cow.

"The company will be the top priority in the future, from Microsoft's recent actions and Nadra status is likely to further enhance the view, Microsoft is betting Treasure cloud computing." The investment community said.

A senior IT operator in Shanghai told reporters, "after missing the mobile internet, cloud computing is more important to Microsoft, now the traditional server to become a cloud server, many things do not need to open the software, can be directly completed online, if Microsoft does not change, enterprises gradually abandon Microsoft's server and office, That's terrible. ”

Microsoft has done a lot better on cloud computing than in the mobile-internet world.

According to Forrester Research, a foreign market researcher, Amazon has a market share of 71% per cent of the enterprise customers currently using cloud computing services, compared with about 20% of Microsoft's public cloud Windows Azure, and for the next 1 years, Microsoft's market share is likely to rise to 35%. In May, Microsoft also introduced its publicly-owned cloud platform into China as the first foreign cloud to enter the country.

A person who worked at Microsoft told reporters, "Microsoft's style is different from Apple, Apple Focus, Microsoft has to pull a long line, the two actually have pros and cons, the front is more resistant to risk." Moreover, although the consumer market looks shiny, but the market volatility, money is not profitable, business will be more stable and profitable. ”

In the wake of cloud computing, the capital markets have also seen positive feedback on Microsoft's share price, which has risen nearly 30% per cent in nearly three months.