by Marc Bastow | June 3, 2013 11:33 am
Microsoft (MSFT) Chairman and CEO Steve Ballmer is working towards reinventing the company as a “devices and services” company, moving away from its traditional focus on software according to a variety of sources, most notably Kara Swisher at AllThingsD.
Ballmer’s vision was originally laid out in part at Microsoft’s Annual Shareholder meeting last November, telling shareholders “this is really a new era for our company.” The vision was first brought to investors’ attention in an October 8 letter to shareholders in Microsoft’s 2012 Annual Report:
“Last year in this letter I said that over time, the full value of our software will be seen and felt in how people use devices and services at work and in their personal lives. This is a significant shift, both in what we do and how we see ourselves — as a devices and services company. It impacts how we run the company, how we develop new experiences, and how we take products to market for both consumers and businesses. The work we have accomplished in the past year and the roadmap in front of us brings this to life.”
The actual plans to bring the vision to life are still under consideration. Analysts have speculated that the company could sell its Bing search engine and Xbox Gaming system as part of the plan, although no details or timetable has been mentioned at this point.
Microsoft shares have been on a tear recently, with a year-to-date gain of nearly 62%. Shares are trading ahead nearly 1% in early Monday trading.
Written by Marc Bastow, Assistant Editor at InvestorPlace.com, who is long MSFT.
Source URL: http://investorplace.com/2013/06/microsoft-working-on-restructuring-its-business-model-msft/
Short URL: http://invstplc.com/1nx3lCj
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.