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I used the think the same thing, but it's not clear to me that Microsoft "needs" saving. They're growing the enterprise side of their business quite fast and th
by thematt 14y ago
I used the think the same thing, but it's not clear to me that Microsoft "needs" saving. They're growing the enterprise side of their business quite fast and the problem just seems to be that investors expect them to be the next Apple, whereas Ballmer is turning them into the next IBM.
They'll still make boatloads of money on the enterprise side and that'll be enough to keep them floating for decades to come, so I continue to wonder if there truly is a problem with their business strategy or if it's just misaligned expectations.
- roc 14y agoIf Ballmer was aiming for the next IBM, he'd have spun off Windows Phone as IBM sold off its PC business. They wouldn't be buying companies and pouring resources into it and pissing off the OEMs by pouring resources into Surface. And if they were just shooting for Enterprise++, keeping Windows Phone and Surface to keep enterprise device sales under their umbrella, they'd be spinning off the XBox and consumer media properties. But they're not spinning anything off. They're still expanding into new spaces. And they're fighting for consumer money harder than ever. I'd say the evidence suggests that, even though it could be wildly profitable if it went the IBM way, Ballmer still wants Microsoft to be all things to all people.
- noblethrasher 14y agoIsn't Microsoft more profitable than IBM? http://ycharts.com/companies/IBM/profit_margin http://ycharts.com/companies/IBM/profit_margin http://ycharts.com/companies/MSFT/profit_margin http://ycharts.com/companies/MSFT/profit_margin
- roc 14y agoAnd how much more profitable would they be without things like their Entertainment division, Bing, Ad company acquisitions, etc?
- bztzt 14y agoThey are doing this because they know that today's consumer market = tomorrow's enterprise market.