Microsoft Reorg: More Surface Tablets, Windows 8 Smart Phones?
The Microsoft reorganization, announced today, focuses entirely on devices and services. But how many Microsoft devices? And how many services? Even if The VAR Guy doesn’t have the hard numbers at hand one thing is clear: Microsoft (MSFT) is pushing deeper into the hardware business with more Surface tablets… and perhaps even Microsoft’s own Windows smart phone.
Ballmer said Microsoft will now have four engineering areas:
- Operating systems;
- Apps (execuse me, Steve: did you mean nimble apps or classic business applications, or both);
- Cloud;
- and Devices.
(Plus: Dynamics will remain separate for special focus — more on that from The VAR Guy later…)
The key takeaway: Devices — Xbox and Surface — are getting equal footing with Microsoft’s software work.
Surface is not an experiment. Rather, it is a huge piece of Microsoft’s growth strategy. Ballmer used the word “device” 19 times today in his memo. By contrast, he mentioned “PC” four times and Surface twice.
There’s considerable speculation that Microsoft is working on Surface RT and Pro refreshes and perhaps even a Microsoft Surface 7-inch tablet. Before those devices even arrive, Microsoft is gradually ramping up a Surface partner program for selected distributors and authorized resellers.
But what about Microsoft building its own Windows phone? So far it sounds unlikely. Back in April 2013, Microsoft told CNET that the company was happy deferring the Windows Phone hardware market to Nokia and HTC.
Nokia returned the love today by launching the Lumia 1020 Windows smart phone with a 41 megapixel camera.
Can Microsoft drive similar types of device innovation? Ballmer sure hopes the reorg accelerates such efforts…
