Ballmer strongly hints at Office for iPad and Android tablets

Microsoft CEO Steve Ballmer insinuated that the company is working on a version of Office for the iPad and for Android tablets when he addressed Wall Street analysts on Thursday.

Speaking about "upside opportunities" that exist for Microsoft, Ballmer talked about porting products to non-Windows platforms. "We don't have our heads in the sand," he said during the company's meeting with financial analysts, which was held in a Bellevue, Washington convention center and webcast live.

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In this context Microsoft is "working on everything that you think we should be working on," Ballmer said.

Windows is the preferred platform for Microsoft applications and remains supremely important, but executives have less "religion" than people think and keep their "eyes wide open" with regards to the opportunities for generating additional revenue by porting products like Office to other platforms, he said.

To be sure, Ballmer didn't refer specifically to Office for iOS and Android, but it seemed clear that this is what he had in mind, since this issue has been a constant source of criticism for the company, which is leaving a lot of money on the table by not offering full, native versions of Office for the Apple and Google mobile OSes.

In a question-and-answer session after his prepared remarks, he once again took up this theme, saying "our devices carry our services, and our services will be available on a number of people's devices."

He mentioned SkyDrive, Skype and OneNote, which are available in iOS and Android versions, as examples of the direction Microsoft is going. However, he also said that part of the difficulty lies with Apple and Google in how they run their respective app stores.

Skype, for example, is as "cross platform as could be, and we probably should use it to capture more functionality" but Apple frowns on allowing suites on its app store, he said.

"They know they have to avoid [competitors] getting too much traction with their services on their devices, but we're working away on it and it's very, very important to us," Ballmer said.

"Devices come with services, services have to find their way onto non-Microsoft devices and we certainly have to support that without religious bias, if you will," he added.

Earlier, during a panel discussion, Qi Lu, executive vice president of Microsoft's Applications and Services Group, had danced around a question about this issue, giving a quasi-professorial explanation for how Microsoft decides when and where to port software, but ultimately refraining from giving any concrete answer.

Many believe Microsoft has been reticent to offer Office for iPad in particular out of fear that doing so will hurt the value of Windows 8, which is optimized for tablets, and of the new Surface RT tablets, and instead help iOS and Apple. Neither the new Microsoft OS nor its new tablets have fared as well as expected.

Ballmer's comments were the most surprising in the four-hour meeting, in which he and his lieutenants spent most of the time making a case for why Microsoft, despite its challenges, is in good shape to recover from past mistakes and take advantage of market opportunities in the coming years.

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Ballmer: Three-layered plan will lead to 'One Microsoft'

September 20, 2013 03:15 PM ETIDG News Service - It's been two months since Steve Ballmer unfurled his plan to restructure Microsoft's operations, and inquiring minds would like to know what stage the process is at.

In fact, he was asked just that on Thursday during the company's meeting with Wall Street analysts, but Ballmer's answer wasn't entirely clear or specific.

The analyst who brought up the subject asked whether the process was completed and, if it's not, whether it would take several more quarters for all the pieces of the different teams to be in place and for everyone to know whom they report to.

Ballmer answered that there are three layers to the implementation of the plan, although he didn't explain what each layer involves.

"The first layer is obviously done," he said.

In that case, the first layer may have involved the drafting and announcing of the plan, completed in July.

At that time, Ballmer explained the realignment is designed to make Microsoft function in a more unified, cohesive manner so that it can be more agile responding to market opportunities and innovating.

As part of the restructuring, Microsoft dissolved its five business units -- the Business Division, which housed Office; Server & Tools, which included SQL Server and System Center; the Windows Division; Online Services, which included Bing; and Entertainment and Devices, whose main product was the Xbox console.

It replaced them with four engineering groups organized by function, around operating systems, applications, cloud computing and devices, and by centralized groups for marketing, business development, strategy and research, finance, human resources, legal and operations.

Terry Myerson was appointed to lead the new Operating Systems Engineering Group, while Julie Larson-Green was picked to helm the Devices and Studios Engineering Group. Qi Lu became chief of the Applications and Services Engineering Group, while Satya Nadella was chosen as head of the Cloud and Enterprise Engineering Group.

The Dynamics enterprise software apps team was left as it was and Kirill Tatarinov remained at the helm. Kevin Turner stayed in his chief operating officer role, as did CFO Amy Hood, General Counsel Brad Smith and HR head Lisa Brummel.

Tami Reller, who had led the Windows team with Larson-Green, was appointed marketing chief for the company. Eric Rudder was chosen to lead the Advanced Strategy and Research Group, while Tony Bates, former Skype president, was put in charge of the Business Development and Evangelism Group.

After declaring the first layer completed, Ballmer on Thursday went on to say that "there's not a lot of change in Kevin's world at the next layer," referring to COO Turner.

Reller, the marketing chief, is "mostly done" and Bates, the business development and evangelism head, is "mostly done I would say, on the business side."

Reprinted with permission from IDG.net. Story copyright 2012 International Data Group. All rights reserved.

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Twitterers have their say on Steve Ballmer, Microsoft ... and Batman?

Computerworld - As reports on Steve Ballmer's plan to retire from his Microsoft CEO post raced across the Internet this morning, Twitter lit up with tweets poking some fun and hand wringing about the fate of Microsoft.

Microsoft Friday disclosed Ballmer's plan to retire from the company at some point in the next 12 months. Ballmer joined Microsoft in 1980 and has been CEO since 2000.

The announcement comes just weeks after Ballmer unveiled a "far-reaching realignment" of the company to hasten its move to become a devices and services business.

"We need a CEO who will be here longer term for this new direction," Ballmer wrote in an email to employees today.

The surprise announcement brought a burst of activity to Twitter -- Steve Ballmer and related hashtags have been trending high for hours. Many of the tweets gave Ballmer a verbal punch before he heads out the door.

"Was Ballmer the Vista of CEO's?" asked @jeffsussna. "Why is he leaving now? There's still something of the company left yet to ruin," added @linuxuser3. And @zoltandulac tweeted, "Steve Ballmer is actually now doing the best thing he can do for Microsoft - leaving!"

Others noted that the surge in Microsoft's share price following the announcement added some $560 million in value to Ballmer's 333.3 million shares of Microsoft stock as of early this afternoon.

"Looks like Ballmer finally figured out how to make Microsoft stock go up," tweeted @spolsky. Twitterer @ggoodale tweeted, "I can only hope my retirement announcement will be as profitable for me as Steve Ballmer's was."

Another tweet, this one from "Sorta like cheering when the long talker leaves the dinner party. Steve Ballmer will retire; stock rises," @profitandlaws noted.

Others took note that the announcement comes at the same time actor Ben Affleck was cast to play Batman in the Man of Steel sequel. "Why cant Ben Affleck replace Steve Ballmer instead?" tweeted @firasatdurrani.

Some twitterers also lauded Ballmer's work at Microsoft. "And you forget that Steve Ballmer was the sales guy that helped make Windows what it is in the first damn place," tweeted @robertmclaws.

Sharon Gaudin covers the Internet and Web 2.0, emerging technologies, and desktop and laptop chips for Computerworld. Follow Sharon on Twitter at @sgaudin, or subscribe to Sharon's RSS feed . Her email address is sgaudin@computerworld.com.

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Update: Missteps may have hit a tipping point for Ballmer

IDG News Service - An accumulation of blunders under Steve Ballmer's leadership may have hit a tipping point this year, leading to Friday's groundshaking announcement that Bill Gates' former right hand and heir, as well as Microsoft's fiercest cheerleader, will step down as CEO within the next 12 months.

In recent years, Ballmer has been the target of critics over a variety of issues, including their dissatisfaction with the company's stock performance, Google's dominance in search advertising, the perception that Microsoft reacted late to cloud computing and its weak position in the tablet and smartphone OS markets.

"There have been a whole series of market shifts that Microsoft has either missed entirely or misjudged their importance," said Al Gillen, an IDC analyst.

Rebecca Wettemann, a Nucleus Research analyst, said Ballmer should have exited the stage several years ago, because he has lacked the vision to see market fluctuations and failed to properly execute on opportunities.

"This gives Microsoft a chance to start a new chapter and hire a CEO who has vision to lead the market, and not follow it, which is what Microsoft has been doing," she said. "It must be someone who isn't looking just at how we move people to the next version of Office, but how we innovate to drive value to customers."

Most recently, Ballmer has been in hot water over Windows 8, a major upgrade of its flagship OS that many perceive as a flawed release. Billed as a product of historic importance, Windows 8 represents Microsoft's attempt to improve Windows' anemic participation in tablets and smartphones, where Android and Apple's iOS dominate.

However, Windows 8, which began shipping in October, has been heavily criticized due to its radically redesigned user interface, which is based on tile icons and optimized for tablets and other touchscreen devices.

Windows 8 also has a more traditional Windows desktop interface for running legacy applications, but many consumer and enterprise users have complained that toggling between the two interfaces is clunky and inconvenient. There has also been an outcry about the removal of the Start menu and button.

Microsoft plans to release an update for the OS, called Windows 8.1, in October. It addresses these complaints and several others, but there is a concern that the fixes may be too little, too late to salvage the OS's reputation and that it might end up being a fiasco like Windows Vista.

Some critics maintain that attempting to build a single OS for desktops, laptops and tablets was a strategic mistake because Microsoft has ended up instead with a product that isn't good enough for any of those devices. Apple's strategy, by contrast, has been to have Mac OS for its desktops and laptops, and iOS for the iPad, iPhone and iPod.

Microsoft CEO since 2000, Ballmer wrote in an email to employees that Microsoft's \"best days are ahead.\" Ballmer will stay in command until his successor is found.Reprinted with permission from IDG.net. Story copyright 2012 International Data Group. All rights reserved.

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Microsoft CEO Steve Ballmer to retire in 12 months

Steve Ballmer will retire as Microsoft CEO at some point in the next 12 months, the company said on Friday in a surprising announcement that comes weeks after he drafted a major business reorganization that's being implemented now.

"There is never a perfect time for this type of transition, but now is the right time," Ballmer said in an email to his employees. "My original thoughts on timing would have had my retirement happen in the middle of our company's transformation to a devices and services company. We need a CEO who will be here longer term for this new direction."

[ InfoWorld's Woody Leonhard names Ballmer's most likely successor. | For quick, smart takes on the news you'll be talking about, check out InfoWorld TechBrief -- subscribe today. | Find out what topics and issues affect tech's biggest names and news makers in the IDGE Insider CEO interview series. | Read Bill Snyder's Tech's Bottom Line blog for what the key business trends mean to you. ]

He noted that it is a time of important transformation for Microsoft. "Our new senior leadership team is amazing. The strategy we have generated is first class. Our new organization, which is centered on functions and engineering areas, is right for the opportunities and challenges ahead," Ballmer wrote.

"This is an emotional and difficult thing for me to do. I take this step in the best interests of the company I love; it is the thing outside of my family and closest friends that matters to me most," he wrote, adding that Microsoft has "all its best days ahead."

The company's board of directors has created a special committee to find his replacement.

The committee includes Microsoft founder and current chairman of the board Bill Gates and is headed by John Thompson, the board's lead independent director, Microsoft said. Both internal and external candidates will be considered.

The new CEO must turn Microsoft into a successful devices and services company and must work with the company's leadership team to achieve this in an highly competitive industry, Microsoft said.

Ballmer has been CEO Microsoft since 2000. He joined Microsoft in 1980 and was the company's first business manager. After that, he held different roles in the company, including senior vice president of sales and support, senior vice president of systems software, and vice president of marketing.

Loek is Amsterdam Correspondent and covers online privacy, intellectual property, open-source and online payment issues for the IDG News Service. Follow him on Twitter at @loekessers or email tips and comments to loek_essers@idg.com

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Perceived missteps may have hit a tipping point for Ballmer

An accumulation of blunders under Steve Ballmer's leadership may have hit a tipping point this year, leading to Friday's groundshaking announcement that Bill Gates' former right hand and heir, as well as Microsoft's fiercest cheerleader, will step down as CEO within the next 12 months.

In recent years, Ballmer has been the target of critics over a variety of issues, including their dissatisfaction with the company's stock performance, Google's dominance in search advertising, the perception that Microsoft reacted late to cloud computing and its weak position in the tablet and smartphone OS markets.

[ InfoWorld's Woody Leonhard names Ballmer's most likely successor. | Read the full text of Ballmer's announcement email. | For a quick, smart take on the news you'll be talking about, check out InfoWorld TechBrief -- subscribe today. | Stay abreast of key Microsoft technologies with InfoWorld's Technology: Microsoft newsletter. ]

"There have been a whole series of market shifts that Microsoft has either missed entirely or misjudged their importance," said Al Gillen, an IDC analyst.

Rebecca Wettemann, a Nucleus Research analyst, said Ballmer should have exited the stage several years ago, because he has lacked the vision to see market fluctuations and failed to properly execute on opportunities.

"This gives Microsoft a chance to start a new chapter and hire a CEO who has vision to lead the market, and not follow it, which is what Microsoft has been doing," she said. "It must be someone who isn't looking just at how we move people to the next version of Office, but how we innovate to drive value to customers."

Most recently, Ballmer has been in hot water over Windows 8, a major upgrade of its flagship OS that many perceive as a flawed release. Billed as a product of historic importance, Windows 8 represents Microsoft's attempt to improve Windows' anemic participation in tablets and smartphones, where Android and Apple's iOS dominate.

However, Windows 8, which began shipping in October, has been heavily criticized due to its radically redesigned user interface, which is based on tile icons and optimized for tablets and other touchscreen devices.

Windows 8 also has a more traditional Windows desktop interface for running legacy applications, but many consumer and enterprise users have complained that toggling between the two interfaces is clunky and inconvenient. There has also been an outcry about the removal of the Start menu and button.

Microsoft plans to release an update for the OS, called Windows 8.1, in October. It addresses these complaints and several others, but there is a concern that the fixes may be too little, too late to salvage the OS's reputation and that it might end up being a fiasco like Windows Vista.

Some critics maintain that attempting to build a single OS for desktops, laptops and tablets was a strategic mistake because Microsoft has ended up instead with a product that isn't good enough for any of those devices. Apple's strategy, by contrast, has been to have Mac OS for its desktops and laptops, and iOS for the iPad, iPhone, and iPod.

"If Windows 8 had been a huge success and the business was growing by leaps and bounds, and Microsoft was winning share in the tablet market, there'd be a lot less pressure for Ballmer to leave," Gillen said.

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The two guys most likely to succeed Steve Ballmer

The general consensus on Steve Ballmer's imminent departure is that the Windows 8 fiasco spurred it. I don't see it that way. Ballmer has built a very strong company in several different dimensions. Windows 8 is a small, and shrinking, part of the puzzle. I think Ballmer's been planning his departure for a long time. 

But who will fill his shoes? He's cleared out the ranks of senior management -- intentionally or not -- and brought in a new layer of younger, more cloud-savvy leaders who can pull Microsoft out of the old Windows-and-Office rut. The re-org last month was obviously a prelude to, and orchestrated with, Ballmer's retirement in mind.

In my opinion, two Microsoft players stand at the head of the queue to succeed Ballmer. Before we get to them, let's talk to the big, empty chair: Sinofsky, at one point the only obvious heir apparent, left the fold last November. I postulate, once again, that the most likely reason for Sinofsky's departure was that the CEO title wasn't headed his way. Or at least, not quickly enough.

There's absolutely no question in my mind that both Bill Gates and Steve Ballmer have a successor in mind, the fluff about appointing a search committee notwithstanding.

So ... who?

Last November I wrote about the Redmond "Game of Thrones" and noted at the time that, with Sinofsky out of the picture, "it's awfully hard to see any successor for Ballmer, either inside or outside the company." The re-org hasn't changed that one whit.

Here's my short list:

Bill Veghte is obviously in line to become CEO of HP -- he received a big promotion earlier this week. Veghte spent 19 years at Microsoft, mostly on the marketing side. He's probably best known for leading the rollout of Windows 7. Veghte left Microsoft in 2009 after Sinofsky was promoted over him. By all appearances, his loyalties are with HP; it's hard to imagine a return to Microsoft.

Paul Maritz left Microsoft in 2000 after 14 years in engineering positions. He's gone on to bigger and better things, so it's hard to imagine him leaving his new VMware spinoff, Pivotal, to go back to Microsoft.

Satya Nadella, who's now Exec VP of Microsoft's Cloud and Enterprise group, has been with Microsoft for 21 years, has an outstanding reputation, and carries a solid engineering background. He gets the cloud better than most (certainly better than most at Microsoft). But it's anybody's guess if he could rally the troops -- or impress investors.

Tony Bates, who's now Exec VP of Business Development (read: corporate strategy, customers, and developer support), came into the fold as CEO of Skype when Microsoft bought the company in October 2011. He had phenomenal success turning Skype into a profitable enterprise (hey, he got Microsoft to shell out $8.5 billion to buy it), and by all accounts he's doing well at Microsoft now, too. He has strong cloud experience, going way back.

Stephen Elop's a possibility. He left Microsoft in 2010 as head of the Office effort, and he tried to turn around Nokia. Don't blink now, but it's entirely possible he may pull that company out of the fire. The problem with Elop is that he doesn't have much Microsoft experience -- he was only with the company from January 2008 to September 2010. There's also a question of what will happen to Nokia -- and Elop's relationship with Microsoft -- if/when Microsoft announces its own Surface phone.

I don't think Scott Forstall is in the running: Prickly, almost Sinofsky-like personality. Mark Hurd? Naw, old scandals die hard. Kevin Johnson? He retired once already. Bob Muglia? I wish, but he's with Juniper Networks now and not likely to come back. Reed Hastings has his hands full with Netflix, although he was on the Microsoft board until last October.

One statement in the retirement announcement keeps coming back to me: "We need a CEO who will be here longer term for this new direction." Although most of the world thought, until this morning, that Ballmer would rule Microsoft forever, it now appears as if Bill and Steve are looking for younger blood. Nadella is 44, Bates 46, Elop is 49, Maritz 58.

Would Microsoft go way outside the company to hire somebody with little-to-no Microsoft experience? I put the chances of that around zero.

My best guess at this point is that Satya Nadella and Tony Bates are both in the running. I would also guess that Bill and Steve have already made their choice. Which one?

I'd put my money on Bates. I'd even stick my neck out and, at the risk of sounding like a Kremlinologist, guess that the position Bates is in right now -- Executive VP of Business Development -- was created specifically to see how well he could perform swimming with the big sharks.

This story, "The two guys most likely to succeed Steve Ballmer," was originally published at InfoWorld.com. Get the first word on what the important tech news really means with the InfoWorld Tech Watch blog. For the latest developments in business technology news, follow InfoWorld.com on Twitter.

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Here's what Steve Ballmer said about his retirement in an internal email

Network World - This is the text of an internal email from Microsoft CEO Steve Ballmer to employees regarding his plan to retire:

I am writing to let you know that I will retire as CEO of Microsoft within the next 12 months, after a successor is chosen. There is never a perfect time for this type of transition, but now is the right time. My original thoughts on timing would have had my retirement happen in the middle of our transformation to a devices and services company focused on empowering customers in the activities they value most. We need a CEO who will be here longer term for this new direction. You can read the press release on Microsoft News Center.

This is a time of important transformation for Microsoft. Our new Senior Leadership team is amazing. The strategy we have generated is first class. Our new organization, which is centered on functions and engineering areas, is right for the opportunities and challenges ahead.A

Microsoft is an amazing place. I love this company. I love the way we helped invent and popularize computing and the PC. I love the bigness and boldness of our bets. I love our people and their talent and our willingness to accept and embrace their range of capabilities, including their quirks. I love the way we embrace and work with other companies to change the world and succeed together. I love the breadth and diversity of our customers, from consumer to enterprise, across industries, countries, and people of all backgrounds and age groups.

I am proud of what we have achieved. We have grown from $7.5 million to nearly $78 billion since I joined Microsoft, and we have grown from employing just over 30 people to almost 100,000. I feel good about playing a role in that success and having committed 100 percent emotionally all the way. We have more than 1 billion users and earn a great profit for our shareholders. We have delivered more profit and cash return to shareholders than virtually any other company in history.

I am excited by our mission of empowering the world and believe in our future success. I cherish my Microsoft ownership, and look forward to continuing as one of Microsoft's largest owners.A

This is an emotional and difficult thing for me to do. I take this step in the best interests of the company I love; it is the thing outside of my family and closest friends that matters to me most.A

Microsoft has all its best days ahead. Know you are part of the best team in the industry and have the right technology assets. We cannot and will not miss a beat in these transitions. I am focused and driving hard and know I can count on all of you to do the same. Let's do ourselves proud.A

Steve

Reprinted with permission from NetworkWorld.com. Story copyright 2012 Network World, Inc. All rights reserved.

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Missteps may have hit a tipping point for Ballmer

IDG News Service - An accumulation of perceived missteps under Steve Ballmer's leadership may have hit a tipping point this year, leading to Friday's ground-shaking announcement that Bill Gates' former right hand man and heir -- as well as Microsoft's fiercest cheerleader -- will step down as CEO within the next 12 months.

In recent years, Ballmer has been the target of critics over a variety of issues, including their dissatisfaction with the company's stock performance, Google's dominance in search advertising, the perception that Microsoft reacted late to cloud computing and its weak position in the tablet and smartphone OS markets.

Most recently, Ballmer has been in hot water over Windows 8, a major upgrade of its flagship OS that many perceive as a flawed release. Billed as a product of historic importance, Windows 8 represents Microsoft's attempt to improve Windows' anemic participation in tablets and smartphones, where Android and Apple's iOS dominate.

However, Windows 8, which began shipping in October, has been heavily criticized due to its radically redesigned user interface, which is based on tile icons and optimized for tablets and other touchscreen devices.

Windows 8 also has a more traditional Windows desktop interface for running legacy applications, but many consumer and enterprise users have complained that toggling between the two interfaces is clunky and inconvenient. There has also been an outcry about the removal of the Start menu and button.

Microsoft plans to release an update for the OS, called Windows 8.1, in October. It addresses these complaints and several others, but there is a concern that the fixes may be too little, too late to salvage the OS's reputation and that it might end up being a fiasco like Windows Vista.

Some critics maintain that attempting to build a single OS for desktops, laptops and tablets was a strategic mistake because Microsoft has ended up instead with a product that isn't good enough for any of those devices. Apple's strategy, by contrast, has been to have Mac OS for its desktops and laptops, and iOS for the iPad, iPhone and iPod.

Another focus of criticism for Ballmer has been what many consider a bad strategy related to the company's Office cash-cow franchise of refraining from releasing a full-fledged version of the suite for iOS and Android. Seen as a move to protect Windows, critics of this strategy say Microsoft is leaving billions of dollars on the table by not giving users of iPads and Android tablets a full version of Office.

Ballmer has also shouldered the blame for the controversial and so far not very successful decision to have Microsoft manufacture and brand its own tablet, the Surface, an attempt to mimic the model popularized by Apple with its combination of iOS and the iPhone, iPod and iPad devices.

Microsoft CEO since 2000, Ballmer wrote in an email to employees that Microsoft's \"best days are ahead.\" Ballmer will stay in command until his successor is found.Reprinted with permission from IDG.net. Story copyright 2012 International Data Group. All rights reserved.

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