Microsoft on Friday announced that its chief executive, Steve Ballmer will be stepping down and taking retirement from his position within next 12 months. After working hard for 33 years with the Company, when Ballmer announced this news which he might not be enjoying very much – Wall Street indeed rejoiced, given the fact that the share price for Microsoft went up by as much as upto over 7%.
Being a second largest shareholder of the company Ballmer has also managed to make millions during the process. With having more than 333 million shares of Microsoft – at yesterday’s closing price of $32.39 per share Ballmer has reportedly managed to make as much as $769 Mn in a day.
Moreover the company has also announced that it is already on a hunt for a new successor who will be replacing Ballmer.
In a statement on Microsoft’s Web site, Ballmer indicated that his plan to retire was already in work but that he postponed it to give the company a stable hand at the top through the reorganization. “There is never a perfect time for this type of transition, but now is the right time,” said Ballmer. “We have embarked on a new strategy with a new organization and we have an amazing Senior Leadership Team…We need a CEO who will be here longer term for this new direction.”
Microsoft has already set up a committee to find a suitable replacement of the current leader. The committee chairmen Mr. John Thompson stated that the board will be committed to effectively transform Microsoft to be a “successful devices and services company”.
In the early summer Microsoft started with the idea of implementing a new outlook. The tech player wanted to have major focus to devices and services, as the PC market has consistently been falling.
Ballmer was at the root of the PC sales as he pushed through a market who barely knew about softwares except for the intellectual minds of developers. Market shift towards mobile devices and business services; such as Cloud Services, and even Mac/iPhone compatibility seems to be the right time to bring about a change at the top level as well.
From company’s inception till ‘Ballmer’
With Microsoft – having managed to crack a perfect software during its time of inception – the company, for many year – has spent a long time at the helm of computer giant. As in 70’s and 80’s its Windows operating system became a default option for computer manufacturers. If a Dell or a HP want their PCs to be circulated in the market they have to install Microsoft software pre-installed.
But the world – for Microsoft has changed in last few decades – with increasing popularity of Smartphones and Apple’s regime, which Microsoft missed to understand at right time. However, to gain some business,Microsoft in 2001, signed a deal with Nokia and released windows phone in the market. But the sale was never enough to regain its market credibility and position. Shares of Microsoft have fallen by more than a third since Mr Ballmer’s appointment in 2000.
So What’s next for Microsoft ?
With Microsoft’s products having established itself as a conglomerate, the company seems to have lost its focus. As today its quite hard to answer whether it develops software (Windows) or a manufacture hardware products (tablets and XBox under its own surface brand). For now – the company – and perhaps it’s news boss – should rather keep its focus primarily on its core products, Windows 8 and Windows phone – i.e an update and revolution to the company’s operating system and an answer in rivalry to Google and Apple respectively.
To contact Author, email Aashutosh@wirefootindia.com or Devesh@wirefootindia.com