The Bankwatch

Tracking the consumer evolution of financial services

Microsoft … it is time to eliminate 66% of your workforce and refocus

Off topic for this blog, but I have been watching Microsoft for so many years, and watch them stagnate.  The answer is clear.  Ballmer must go.  Bring in a fresh face, and pull a Steve Jobs … not what everyone thinks, meaning UX creativity.

Microsoft reports modest gains

Microsoft’s quarterly profit increased by a modest 6 per cent from a year earlier as sales of its flagship Windows operating system were depressed by flagging growth in the PC industry.

The world’s largest software company by revenues said sales in the fiscal first quarter rose 7 per cent to $17.37bn, held back by a mere 2 per cent gain on Windows to $4.87bn. The division including Office software grew by 8 per cent to $5.62bn.

 

Time to pull Microsoft apart, and break it down to its roots.  Microsoft was about an operating system.  Everything else they have tried with the exception of games has been a loss.  The 10 year stock price tells the tale.

Jobs took Apple from 13 pc’s down to 1.  He eliminated Apple printers.  He pulled Apple down to the niche that was the then current reality.  It involved enormous layoffs. The rest is history.

Microsoft needs to dramatically refocus and reduce back to their core competency.  Ballmer will not let that happen so it needs new leadership.  Once you get Microsoft back to, lets say 1/3 of current size, then lets see what can be done with a company that will still create similar profits to today, but with a very focussed smaller group.  Its called strategy 101 and why the board are not asking for this is beyond me.

Written by Colin Henderson

October 20, 2011 at 23:16

Posted in Uncategorized

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