How Microsoft will seize China's market opportunities

September 25, the global CEO Satia Nadra (Satya Nadella) for the first time to visit China, its visit to China is a positive signal in the industry. The new CEO has given confidence to the previously "slightly confused" Microsoft China Team, which shows that direct communication rather than listening to reports is the best way for Microsoft's global management to "understand and learn" the Chinese market. The position and value of the world's largest market will be given new meaning through more intuitive communication.

In a short two-day trip, Satia Nadra a speech at Tsinghua University, with the "Innovation Cup" Chinese students exchange, for Microsoft "Microsoft New Horizons" project unveiled, and with the Shenzhen and Microsoft's hardware eco-circle partners to exchange. It is not hard to imagine that in China for more than 20 years, Microsoft will look at and understand the Chinese market with a new perspective.

Prior to that, September 18, Microsoft again announced the global layoff plan, and previously involved in Nokia China's 25,000 people's layoffs, has cast a shadow on its transformation process. "Restructuring our workforce is the first step towards building the right organization for our vision," Satia Nadra said. "The word" adjustment "may be too strong, but the sharp layoffs mark a reduction in Microsoft's commitment to the mobile device market.

A strong sense of crisis replaces confidence. In a way, Microsoft's cut of 10,000 Nokia employees in China after just 3 months of embracing Nokia has not had much positive impact on its Chinese business. But new opportunities remain in China, and the biggest partners are in China. At present, Microsoft has a complete organizational structure in China, as Azure and other services such as the Xbox and other hardware products in China's Landing and release, changing the Chinese market is only a strategic focus rather than profit center, Microsoft China is still the main goal in the future. In fact, Microsoft has been trying to new business model to meet the needs of the Chinese market.

In Microsoft's new strategy, the software giants will focus more on cloud services and enterprise-class business. and "cloud computing" will continue to play an important role in Microsoft's China business. Given the complexity of the plan, attracting partners and corporate users with a more affinity interface will help Microsoft shift from the profit model of the software license era to the mobile Internet-centric profit model. This change requires not only the adjustment of strategies but also the efficient implementation.

Based on this, Nadra encourages employees to make a comprehensive change: "Microsoft needs to re-examine its own soul". What makes up Microsoft's soul? At the beginning of the venture, this intangible power comes from Bill Gates ' mastery of technology and Ballmer marketing skills. Still, neither has changed Microsoft's meagre gains in the Chinese market.

It's not hard to see the challenge facing Satia Nadra, in addition to the deployment of lengthy product lines and complex internal resources to adapt to the new strategy, in addition to reconciling the traditional software license revenue model with the free mode of the Internet age, in addition to addressing the development of mobile terminals in a world famous software development model, It also includes a new understanding, definition and investment in the Chinese market.

The size of the Chinese market determines the significance of China's strategy, but to calculate the input-output ratio of Microsoft in China, especially the "efficiency" in the process of technology development and market, we will find that in order to "result-oriented, to use people well, and to inspire the vitality of innovation into excellent market results", Microsoft still has huge space to cross in China.

There is no doubt that Microsoft's chances are in China. But how to do things faster and better after a big simplification of business requires judgment and foresight and a greater need for mind. In addition to trying to meet Microsoft's surging demand in China, Satia Nadra should also help Microsoft's Chinese staff overcome previous doubts and frustrations. As he himself said: "It is not easy, but we will do our best." ”