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With the appointment of Satya Nadella as the new CEO and the tech giant recently acquiring Nokia, it is sure that Microsoft has big plans in mind. No doubt Nadella’s credentials all point towards the firm’s future direction as a software house as his most recent role was heading up the Cloud OS platform team at Microsoft, which is used to power all of the firm’s cloud services such as Office 365 and Dynamics, and also consumer services, including Xbox Live and Skype.
But while the experience with products such as Skype and Xbox Live might indicate a consumer focus, there is no iota of doubt that Nadella is a corporate man. However, the problem is he has to understand that the world has moved on from the stereotype model Microsoft often resorts to. Microsoft’s recent set of financial results for the period ending December 31, 2013 also shows that consumer licensing is on the decline, as fewer individuals choose Windows over alternative options such as Android, iOS and Chrome.
Conversely, Microsoft is showing gains in the hardware side, especially with its popular Xbox One console. The firm sold 7.4 million Xboxes into the retail channel from October to December last year, and overall consumer and device revenue grew by 13% to $11.9 billion.
So Nadella should understand that though software, cloud and mobile are his key focus areas, hardware brands like Nokia devices and Surface tablets cannot be kept aside.
Ranjana Jaiswal is a student of All India Management Association, New Delhi