I think the devices + services model is basically something that Ballmer wasn't really prepared to do. Microsoft isn't designed for that. It's designed around p

I think the devices + services model is basically something that Ballmer wasn't really prepared to do. Microsoft isn't designed for that. It's designed around packaged software and selling to large enterprises on 2-4 year replacement cycles. In hardware, it's a lot about supply chain management, something that Apple is basically the best in the world, far better than even Dell. A $900,000,000 write down is proof that MSFT doesn't understand supply chain management. Amazon understands how to manage these things, and that's why they often launch in the US first, then worldwide later. Google relies on hardware vendors to manage the supply chain and also has super limited distribution of their own devices to reduce risk. One early report on the Surface said the Surface people didn't even talk to the Xbox people during development. So, it's not much of a surprise that the distribution didn't go well if they didn't really talk to the one team at MSFT that has done global hardware distribution. In software services, you have to roll out updates more often. Microsoft is trying harder, but they need to get major releases out yearly and minor updates every couple months. Microsoft is going to do better at catching up in software services than hardware, but they aren't there yet and it's unclear that Ballmer and co. are totally willing to shift to a more web/net oriented mindset. Office 365 is probably the best example of executing on software services at scale and making a lot of money, but they got rid of guys like J Allard and Ray Ozzie who were pushing for devices and services almost 10 years ago. Ultimately, Ballmer is not a devices guy or a services guy. He's a very very smart businessman who cut his teeth selling boxed software and to large enterprises. Things that weren't large enterprise or boxed software Windows were never going to get the same kind of support under him simply because that's not his perspective by default. It is going to be a real challenge for Microsoft to find someone who can rebuild MSFT for the future.