Microsoft 3.0: Pushing productivity across platforms and devices
By Gadjo Cardenas Sevilla
Microsoft CEO Satya Nadella's e-mail to employees last week served as the company's manifesto for a new era. Titled 'Bold Ambition & Our Core', the lengthy document sets the foundation for a new Microsoft, one that's moving away from Steve Ballmer's 'Devices and Services,' focused company to a more universal 'mobile-first and cloud-first,' company that embraces the opportunity to be the lead productivity and platform company.
We've seen the writing on the wall, under Nadella Microsoft has become a more altruistic technology giant, one that released their crown jewel, Microsoft Office, to the iPad, the device whose immense popularity threatened to bury the PC as a thing of the past.
Old Microsoft held on to Office for iPad for years like a crazed Gollum caressing the precious One Ring. Meanwhile, untold millions in revenue resulting from Office for iPad sales on iOS could have made Microsoft even wealthier and made Office products even more ubiquitous than they already are. This is changing, Office is on the iPad and it is one of the hottest selling apps and it looks like Office for Android isn't far behind.
At our core, Microsoft is the productivity and platform company for the mobile-first and cloud-first world. We will reinvent productivity to empower every person and every organization on the planet to do more and achieve more.
- Satya Nadella
By focusing on mobile-first, a place where Microsoft falls a far third behind rivals Apple and Google, Microsoft has to push hard and fast to provide its plethora of services and solutions to rival platforms and go back to its roots as a software juggernaut. It must do this to remain relevant, while Windows Phone continues to grow.
As for Windows Phone, there's a lot of work to be done here. The Windows Phone 8.1 OS is impressive and feels like a good alternative to existing mobile OS's but there doesn't seem to be enough choice in terms of handsets, at least in Canada. Microsoft just acquired Nokia, so we should see some new revelations in time.
The new Microsoft also sanctioned the release of Android powered Nokia X smartphones to saturate emerging markets and the entry level. Something that would have been unheard of under Bill Gates or Steve Ballmer's leadership. These are all smart plays, moves that might prove profitable for Microsoft in the long run.
Today I want to synthesize the strategic direction and massive opportunity I've been discussing for the past few months and the fundamental cultural changes required to deliver on it.
The great thing about Nadella as Microsoft CEO is that he wastes no time to single out the problems Microsoft is facing in various fronts, and his letter is his way of telling Microsofties and the public at large, that the company is changing, not just its focus, but also the culture needed to succeed in the long term.
For me, this is more important than any one announcement or product, since it will encompass the way Microsoft is perceived moving forward.
The renewed focus in productivity is a great pivot for Microsoft since it is already well-established in creating the best, or at least, most widely used office and corporate solutions. Google and Apple focus on a lot of lifestyle featured solutions and how technology can improve a user's life and make things easier.
Microsoft is taking a different tact and being the company that will help users get things done and stay productive no matter what device or platform they are on. Now, that's a key strategic advantage.
Not that Apple and Google don't have similar solutions, because they do, but Microsoft is the most recognized company in this area because they've really built a business around productivity. The plan now is to translate this to mobile and the cloud across the board.
This is better than rushing smartphones, tablets and PCs to market to counter the latest hardware and software from its competitors. These are strategies Microsoft has tried and which cost them in the the past (read: Zune, Kin).
XBox is a pillar of Microsoft's business, one that it is still learning to position and monetize properly. Nadella stressed the importance of Xbox as its digital life beachhead (see below). it is also a great platform of cool and hip products and solutions that balance out the more serious and mundae productivity push the company is making.
We are fortunate to have Xbox in our family to go after this opportunity with unique and bold innovation. Microsoft will continue to vigorously innovate and delight gamers with Xbox. Xbox is one of the most-revered consumer brands, with a growing online community and service, and a raving fan base.
The best part of Nadella's letter is the renewed focus on customers. Microsoft has long stated that, unlike in the past, they are really listening to what people are saying.
They've made moves to reflect this. Major moves.
The Start button and now menu have crept back into Windows 8.1. The Surface Pro 3 addresses many of the issues that made earlier versions non-starters, and a lot of the feature improvements came from frustrated customers. They also unbundled the unpopular Kinect 2 accessory from the Xbox One and lowered it to more consumer-acceptable price points.
Even how Office 365 is now being priced, packaged and sold, seems to reflect what people are willing to pay for, rather than what Microsoft wants them to pay. it's a good start and great example for other companies. No matter how big you are and how smart you think you are, your customers know best and their feedback and criticism are extremely valuable.
So, it isn't every day that a new CEO sets down the ground rules and unveils a grand plan. Nadella's move is ballsy, any failure near and far could blow back, but so what. Everything is on the table. It is an admirable move, and one that's reassuring to most people doubting Microsoft's direction.
By being open about the company's focus and the desire to create an environment where, "tired traditions will be questioned" and where "our priorities will be adjusted," shows that Microsoft's leadership understands what needs to happen for the company to continue its success. We hope this bold ambition trickles downwards and that we get to see and experience the new Microsoft of Nadella's clear and focused vision in their products and services.