Ballmer’s Microsoft Transformation

Software, Tech, Thought Provoking

Insightful article from Dustin Custis about the transformation of Microsoft under Steve Ballmer.

Here’s operating income by business unit from Microsoft’s last quarter:

3,770 M Business Division
2,952 M Windows
1,738 M Server & Tools Division
(229) M Entertainment and Devices
(479) M Online Services

6,374 M Total income

If you compare Microsoft’s earnings history to these recent numbers, the trend is clear: solving problems for companies that have a lot of money is very lucrative. Microsoft’s strategy, smartly, has been to focus on them. Most new consumer-focused initiatives lose money, and those failings are disproportionately public, hence the negative sentiment toward Microsoft as a company.