New Microsoft CEO faces big choices post-Steve Ballmer - Indian Express

Reuters : Seattle, Mon Aug 26 2013, 13:26 hrs Steve Ballmer, who announced his retirement from the head of Microsoft Corp on Friday, had the misfortune to follow Bill Gates at the helm just as the company hit the end of its explosive growth period. The next CEO of Microsoft Corp has one big decision to make: press on with retiring chief executive Steve BallmerSteve Ballmer 's ambitious plan to transform the software giant into a broad-based devices and services company, or jettison that idea and rally resources around its proven strength in business software. Ballmer's grand design - unveiled just six weeks before Friday's surprise announcement that he would retire within a year - calls for 'One Microsoft' to pull together and forge a future based on hardware and cloud-based services. Related: India-born Satya Nadella in running for Microsoft's top post after Steve Ballmer But poor sales of the new Surface tablet, on top of Microsoft's years-long failure to make money out of online search or smartphones, have cast doubt on that approach. For years, investors have called on Microsoft to redirect cash spent on money-losing or peripheral projects to shareholders, while limiting its focus to the vastly profitable Windows, Office and server franchises. Activist investor ValueAct Capital Management LP, whose recent lobbying of the company may have played a role in Ballmer's decision to retire earlier than he planned, is thought to favor such an approach. In the last two years alone, Microsoft has lost almost $3 billion on its Bing search engine and other Internet projects, not counting a $6 billion write-off for its failed purchase of online advertising agency aQuantive. It took a $900 million charge for its poor-selling Surface tablet last quarter. For now at least, Microsoft seems intent on pursuing Ballmer's vision. John Thompson, Microsoft's lead independent director who is also heading the committee to appoint a new CEO, said on Friday the board is "committed" to Ballmer's transformation plan. The eventual choice of that committee - which has given itself a year to do its work - should provide a clue to how committed the board really is, and how open to outside advice. ... contd. ALSO READ Surplus spectrum: Hearing against Sunil Bharti Mittal, Ravi Ruia on October 28 Lakshmi Mittal's billionaire kin spends £50 mn to transform historic London mansion Barclays upgrades Larsen & Toubro to 'overweight' BSE Sensex continues rising streak for 3rd straight day, up 182 pts Please read our terms of use before posting comments TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s). via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFSSCClYWzrIqG6d0nDo2slc7f3Lg&url=http://www.indianexpress.com/news/new-microsoft-ceo-faces-big-choices-poststeve-ballmer/1160281/

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