Microsoft Corporation (NASDAQ:MSFT) CEO Satya Nadella can turn around the software giant, Crawford Del Prete said in a recent talk with Emily Chang and Bob O’Donnell on Bloomberg West.
Furthermore, Del Prete said that Nadella’s recent memo points to major changes in the company.
The comment comes from the IDC Research Chief Research Officer after the Microsoft Corporation (NASDAQ:MSFT) boss sent a very long and detailed email to all employees outlining his plans for the company. Also known as a vision memo, the email was sent to employees today with the subject line “Starting FY15 – Bold Ambition & Our Core”.
Chang asked Del Prete about the email which she described as “bold” and “inspirational”. According to the IDC Research executive, the memo from Nadella points to the CEO directing Microsoft Corporation (NASDAQ:MSFT) to focus on being a successful services company. He explained:
“What I pull out of it, and what I thought was very fascinating, was his kind of acknowledgement that the tech industry doesn’t really look to the past. It looks to innovation and it looks to the future…I disagree with your opening comments a little bit in that it’s not about services. I think Microsoft is all about services. They are about consumer services. They are about enterprise services. They are sitting on top of an incredibly valuable franchise with Office and that is really the language of how people get things done around the world. I think they want to unlock the value of those kinds of services in addition to things like Lync, SharePoint, Skype and OneDrive. I think what they want to do is they want to differentiate on Microsoft product. That’s where he talks about soft of a brighter light on Microsoft devices but he acknowledges that they are going to be on all devices…Moving toward the cloud, I think, is really a continuation of a long strategy and it’s a frankly very good articulation of the fact that Microsoft wants to participate on all kinds of devices with their services: consumer and enterprise.”
Asked whether he thinks the current Microsoft Corporation (NASDAQ:MSFT) boss is the right person to turn the company around, Del Prete said yes. He told Chang:
“I am quite optimistic. I have to say, people are more excited at Microsoft. He’s trying to drive more innovation at Microsoft. As Bob said, the next few years are going to show us basically whether an end-to-end solution or this modular world works and I think what Microsoft wants to focus on is taking advantage of this modular world. Nadella is moving there through services. I’m very optimistic that he could turn this ship [around].”
Watch the discussion below that started off with the trio discussing the decline of the tablet and the resilience of the PC.
Microsoft Corporation (NASDAQ:MSFT) shareholders includes Bill Miller’s Legg Mason Capital Management which reported after the first quarter of the year about 4.16 million shares in the company. Another investor is Kerr Neilson’s Platinum Asset Management which reported, also during the same period, about 3.14 million shares in the software giant.