Steve Ballmer steps down from Microsoft board

SAN FRANCISCO — Former Microsoft chief Steven Ballmer on Tuesday said he is stepping down as a member of the software giant’s board of directors.

Ballmer made his decision public a month after his successor, Satya Nadella, announced unprecedented job cuts at the US technology firm as it worked to adapt to a “mobile first, cloud first” world.

“Given my confidence and the multitude of new commitments I am taking on now, I think it would be impractical for me to continue to serve on the board, and it is best for me to move off,” Ballmer said in a publicly posted letter to Nadella.

“I bleed Microsoft – have for 34 years and I always will.”

Nadella, in a responding letter posted online, thanked Ballmer for his contributions to Microsoft and said he supported the decision to leave the board.

Ballmer said he would be devoting time to new endeavors that include teaching and the Los Angeles Clippers NBA team he acquired earlier this month.

Ballmer paid a record $2 billion for the Clippers.

Microsoft last month announced its biggest job cuts ever as new chief executive Nadella called for a new focus at the US tech giant while integrating the Nokia phone division.

The company said it would slash 18,000 jobs from its global workforce over the next year, the majority from the Nokia handset unit acquired this year.

Nadella, who became CEO earlier this year, seeks to reinvigorate a company that had been the world’s largest but which has lagged in recent years as Google and Apple have taken leadership of the tech sector.

source: interaksyon.com

Microsoft’s CEO may unveil Office for iPad on March 27: source

Microsoft Corp Chief Executive Satya Nadella may unveil an iPad version of the company’s Office software suite on March 27, a source familiar with the event told Reuters, and use his first big press appearance to launch the company’s most profitable product in a version compatible with Apple Inc’s popular tablet.

Nadella, who replaced longtime CEO Steve Ballmer earlier this year, will address the media and industry executives in San Francisco on March 27.

Investors for years have urged Microsoft to adapt Office for mobile devices from Apple and Google Inc, rather than shackling it to Windows as PC sales decline. But the Redmond, Washington-based software giant has been reluctant to undermine its other lucrative franchise, its PC operating software.

Microsoft gives up some $2.5 billion a year in revenue by keeping Office off the iPad, which has now sold almost 200 million units, analysts estimate.

Tech blog Re/code first reported news of Nadella’s event. Microsoft said in an invitation to reporters that Nadella will discuss “news related to the intersection of cloud and mobile” but declined to comment on the specifics of the CEO’s appearance.

Microsoft has had iPad and iPhone versions of Office primed for several months now, sources told Reuters, but the company has dallied on their release due to internal divisions, among other things.

Although Nadella is expected to discuss his thinking in depth next week, the company has already signaled that it will adopt a more liberal attitude toward putting its software on different platforms.

Microsoft said earlier on Monday that it would make OneNote, its note-taking software, available on Mac, a move interpreted by observers as a shot against Evernote, the popular note-taking application that has both Mac and Android compatibility.

Aside from Evernote, Microsoft also faces budding challenges from startups that have released mobile-friendly alternatives to Word, Excel and Powerpoint.

source: interaksyon.com

Steve Ballmer says goodbye as Microsoft struggles to modernize

SEATTLE/NEW YORK — Steve Ballmer, a passionate salesman who has been a central figure at Microsoft Corp for more than three decades, unexpectedly announced his retirement as chief executive on Friday, ending a controversial 13-year reign in which the world’s largest software company lost its position as the dominant force in computing.

The surprise move sent the company’s share price up 7 percent, reflecting a widespread view that Ballmer is not the man to reverse the fortunes of a company that remains highly profitable but has failed to navigate the transition to the mobile computing era.

Ballmer’s planned exit comes just weeks after the company announced a major reorganization and delivered an earnings report that showed across-the-board weakness in the business, including dismal sales of the company’s new Surface tablet and a lukewarm reaction to the crucial Windows 8 operating system.

Microsoft said it had engaged the executive search firm Heidrick & Struggles and would consider both internal and external candidates to succeed Ballmer – underscoring the lack of a succession plan at a company where many talented executives have been squeezed out over the years. Ballmer will stay on for up to a year until a new CEO is found.

A close friend and confidant of co-founder Bill Gates since the company’s earliest days, the 57-year-old Ballmer formally notified the company two days ago of his intention to retire, according to a regulatory filing. In an interview with the trade publication ZD Net, director John Thompson said the search for a successor had in fact been underway for some time.

“We are well down the path in the search,” said Thomson, who is leading a search committee that also includes Gates.

Still, the timing of the announcement and the lack of a succession plan suggest the recent setbacks may have spurred the company’s board to act. Gates remains chairman of the board, which has historically followed his lead.

Ballmer himself acknowledged his decision was abrupt.

“There is never a perfect time for this type of transition, but now is the right time,” he wrote in a memo to employees. “This is an emotional and difficult thing for me to do. I take this step in the best interests of the company I love.”

Ballmer has faced criticism from investors for years as rivals led by Apple Inc and Google Inc came to dominate huge new markets in smartphones, tablets, Internet search and cloud computing even as Microsoft remained reliant on the traditional personal computer.

Activist investing fund ValueAct Capital Management LP said in April that it had taken a stake in the company and shortly after began agitating for a change in strategy and a clear CEO succession plan.

Microsoft, like Apple, has been under pressure from shareholders to hand back more of its cash hoard, which now totals $77 billion.

“This might accelerate more shareholder-friendly capital returns of that cash treasure trove, which would help in the revaluation of the stock to more appropriate levels,” said Todd Lowenstein at fund firm HighMark Capital Management, which holds Microsoft shares.

There are no obvious candidates to succeed Ballmer at a company that has only had two CEOs in its 38-year history. Ballmer had once indicated that he intended to stay at least until 2017.

Ballmer can claim some important successes: revenue tripled during his tenure, profits doubled, and the company scored a big success with the Xbox videogame business. The Windows and Office franchises remain highly profitable, and Microsoft is well-entrenched as a vendor of corporate computing products and services.

At the same time, though, repeated forays into mobile phones, tablets and music players have come to grief. The Surface tablet, aimed at the hugely successful iPad, alienated longtime hardware partners even as it failed to generate significant sales, and a phone partnership with Nokia has thus far yielded little for either company.

At the same time, the company has lost billions trying to compete with Google in the Internet search business. Some of Microsoft’s corporate computing businesses are also under threat from the industry-wide transition to cloud-based services.

The recent reorganization was aimed at reshaping Microsoft – once primarily a purveyor of packaged software – into a company focused on devices and services, essentially mimicking Apple.

Yet most industry watchers felt it was too little, too late, with some calling on the company to back away from the consumer products sector and focus on serving businesses.

In the ZD Net interview, Ballmer rejected that approach. “Nobody has ever managed to figure out how to build a device for a user that was just enterprise or just consumer,” he said. “These core experiences do span ‘consumer and enterprise.’”

Passion at the top

Ballmer, a forceful, often emotional leader, was regarded a great salesman rather than a brilliant technologist.

A physically imposing presence with a booming voice, his motivational efforts were the stuff of legend: a clip of a semi-hysterical Ballmer screeching and dancing around the stage to rally Microsoft employees has been viewed nearly five million times on YouTube.

Yet the antics sometimes acquired an air of desperation as Apple and other rivals produced industry-changing innovations that Microsoft couldn’t match.

“That is the most expensive phone in the world and it doesn’t appeal to business customers,” Ballmer laughed in a TV interview after the launch of Apple’s iPhone in 2007. Five years later, iPhone sales alone were greater than Microsoft’s overall revenue.

A Michigan native, Ballmer studied applied mathematics and economics at Harvard, where he met Gates. Several years later Gates persuaded him to drop out of Stanford Business School to become Microsoft’s first commercial manager and the company’s 30th employee.

To induce him, Gates offered Ballmer part ownership of the company, and when Microsoft incorporated a year later, Ballmer had almost an 8 percent stake. That formed the foundation of his wealth which is now valued at $15 billion by Forbes magazine.

Ballmer remains one of the largest holders of Microsoft stock, with about four percent of the company. His net worth, ironically, soared by nearly a billion dollars on Friday as the stock market celebrated his departure.

source: interaksyon.com

Rivals Microsoft and Oracle team up on push into cloud

SAN FRANCISCO/SEATTLE — Microsoft Corp said on Monday it would support Oracle Corp software on its cloud-based platforms, a tie-up aimed at improving the rivals’ chances against nimbler Web-based computing companies chipping away at their traditional businesses.

The two industry leaders have competed for decades to sell technology to the world’s largest companies. But they face growing pressure from new rivals selling often-cheaper services based in remote data centers, and they are rushing to adapt.

The two companies have long collaborated out of the public eye to meet customers’ needs, Microsoft Chief Executive Steve Ballmer said on a conference call. “In the world of cloud computing, I think behind-the-scenes collaboration is not enough.”

The tie-up does not resolve major competitive challenges the two tech pioneers face in the cloud market, but their cooperation was seen as a symbolically important step.

“Is it a game changer today? Not at all. It shows both companies are serious about their cloud endeavors. The fact that historical competitors are now friends speaks to how big the cloud opportunity is. And it opens up potential avenues of growth down the road,” said Daniel Ives, an analyst at investment bank FBR.

Under the agreement, customers will be able to run Oracle software on Microsoft’s Server Hyper-V and on Windows Azure platforms, the companies said.

Microsoft will offer Oracle’s Java, Database and WebLogic Server to Windows Azure customers, while Oracle will also make Linux available to Windows Azure customers, the companies said in a news release.

Ironically, the pact means Microsoft is effectively promoting Linux and Java-based software, longtime rivals to its own Windows platform. But the software maker stands to benefit from getting any customer to pay for its datacenter services, regardless of the underlying software being used.

No. 3 software maker Oracle last week missed expectations for software sales for the fourth quarter, sending its shares plunging. Investors worried that the company may have trouble competing with software providers like Salesforce.com and Workday, as well as Amazon.com, which has also become a major player in cloud computing infrastructure.

Top software maker Microsoft’s large-scale cloud computing initiative, called Azure, has failed to catch up with Amazon’s cloud offering, called AWS (Amazon Web Services), which blazed the trail in elastic online computing services in the cloud.

The rivalry between Oracle and Microsoft dates back several decades and has been marked by a personal rivalry between the companies’ best-known cofounders: Larry Ellison and Bill Gates.

In 1995, as the Windows franchise was taking off, Ellison began a high-profile but unsuccessful effort to promote a less expensive competitor to the personal computer known as the Network Computer. Gates began aggressively attacking Oracle’s core database business in the late 1990s, infuriating Ellison as Microsoft’s less-expensive SQL Server gained market share.

In recent years, both have come under attack from a wave of younger companies, like Workday and Salesforce, which charge a single subscription fee for software and support, at far lower margins than for Oracle’s traditional products.

Ellison told analysts on last Thursday’s quarterly conference call that Oracle had forged alliances with Microsoft and Salesforce.com, which uses Oracle’s technology, and said he would announce details this week.

Over the past five years, shares of Amazon.com, which rents remote computing and storage to other companies, have surged 237 percent. Salesforce.com, founded by former Oracle executive Marc Benioff, has risen 105 percent.

During the same half decade, Oracle’s stock has risen 38 percent and Microsoft’s shares are up 21 percent.

source: interaksyon.com

Microsoft pushes new Windows to developers

SEATTLE — Days after launching Windows 8, Microsoft Corp is mounting a strong campaign to win over the software developers it needs to kick-start its new operating system.

A lack of apps is Microsoft’s Achilles heel as it attempts to catch Apple Inc and Google Inc in the rush toward mobile computing.

Windows 8, the new Surface tablet and a range of Windows-based phones – all unveiled in the past week – are designed to close that gap, but the world’s largest software company still needs to convince developers to recreate the thriving ‘ecosystem’ that made PCs so successful.

“Please go out and write lots of applications,” Microsoft Chief Executive Steve Ballmer pleaded with 2,000 developers on Tuesday, kicking off an annual, four-day meeting at its campus near Seattle.

The event, called ‘Build,’ is the equivalent of Apple’s Worldwide Developer Conference and Google’s I/O event.

Microsoft gave each paying attendee one of its Surface tablets and 100 gigabytes of free space on its SkyDrive online storage service. On top of that, handset partner Nokia threw in a free Lumia 920 smartphone running Windows Phone 8.

The unprecedentedly generous give-away signals the intent of what Microsoft openly calls “evangelism.” Most developers at the meeting, who paid up to $2,000 to attend, are already converted to the Windows religion. But this year there is a feeling that Microsoft can re-establish itself as a relevant platform for developers.

“The sessions are overflowing. Everybody wants to learn,” said Greg Lutz, product manager at development tools company ComponentOne, who is attending the conference.

“The Surface is really exciting. It’s been interesting to see people that would normally be critics of Microsoft surprised to see how good it is,” said Lutz, whose company makes features that developers can use in apps, such as calendars or charts.

Microsoft recognizes it needs apps to flesh out its new online Windows Store and make Windows 8 machines more attractive to users, said Russ Whitman, chief strategy officer at Ratio Interactive, a design agency that helps companies create apps.

“The catalog (of apps) is where they are weak, there’s no doubt,” he said. “But if Microsoft stays focused on quality not quantity, they can win.”

Developer doubts

When Windows 8 launched on Friday, some major content providers had prominent apps in the Windows store, such as Netflix Inc, the New York Times and Rovio’s Angry Birds Space. But big names such as Facebook and Twitter were missing.

Twitter moved to rectify that on Tuesday, announcing that a native Windows app would be rolled out “in the months ahead.” Dropbox, a fast-growing cloud storage service, also announced it would soon have a Windows app, as did online payment firm PayPal and sports network ESPN.

But Facebook, which now has more than 1 billion users, has not yet made public any plans for a Windows app, despite the fact Microsoft is a minor shareholder.

And Microsoft still has to overcome indifference from many developers who do not see demand from users or simply do not have the resources to build Windows apps alongside iOS and Android.

“Windows 8 is getting good reviews and the tile user interface is a great fit with our geo-visual content,” said Jason Karas, CEO at website Trover, where users can share photos of interesting discoveries. “It’s on the roadmap for Trover, but we are still a very lean team, so we’re hesitant to support a third platform until we have all the innovations we want to see in iPhone and Android in place.”

Microsoft has yet to persuade other influential online services, for example car-rental firm Zipcar or real estate information firm Zillow, to develop for Windows 8.

To get more developers on board, Microsoft is spending this week demonstrating how it is making it easier to develop apps for Windows and get them into the real world.

A key part of that is a new set of tools tying in its Azure cloud service, which allows Windows apps to easily harness data stored in remote servers.

“Some of the new changes are pretty incredible and are going to make developing, especially some of the mobile apps, much easier,” said Mike Cousins, a software developer following the conference by webcast from Calgary, Canada.

“It just makes it super-easy to integrate mobile clients into your application,” said Cousins, who is developing Shuttr, a site for photographers to display and sell their work. “It’s been reduced from probably a week’s work to minutes.”

400 million new machines

Microsoft’s best argument to developers is the sheer size of the Windows user base.

Microsoft sold 4 million upgrades to Windows 8 in its first four days, a mere fraction of the 670 million or so machines running Windows 7. Ballmer said there would be 400 million new devices running Windows next year, including PCs, tablets and phones, and the company would be marketing heavily to consumers.

That is an attractive audience for developers, and Whitman at Ratio Interactive said he saw many new faces at Microsoft’s event this week who previously were more interested in web-based apps and other platforms.

“There’s a new generation of developers that can build on Windows 8 that have been building using JavaScript and HTML,” he said. “Seeing some of those developers show up and talk about building apps using other languages is pretty cool. It’s a whole different group than Microsoft has traditionally been able to court.”

One Wall Street analyst said developers may even be tempted to switch back to Microsoft after working with Apple’s iOS platform.

“There does seem to be some excitement about the new operating system and many of the new devices that are coming to market,” said Jason Maynard, an analyst at Wells Fargo Securities. “We have heard some developers talk about ‘re-Microsofting’ and moving from their Macs for app development.”

Cousins said that once developers see the user base for Windows 8 grow, the momentum will start to have an effect.

“All the new PCs people buy will be Windows 8, and people will start demanding Windows 8 apps from companies, and then they will start making them,” he said. “I think we’ll see a wave of apps coming out pretty soon.”

source: interaksyon.com