tag:theconversation.com,2011:/global/topics/steve-ballmer-7029/articlesSteve Ballmer – The Conversation2014-02-05T06:46:13Ztag:theconversation.com,2011:article/228012014-02-05T06:46:13Z2014-02-05T06:46:13ZMicrosoft seeks security in the expert hands of Satya Nadella<figure><img src="https://images.theconversation.com/files/40664/original/kvmr2mq2-1391530285.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">After a long search, the right person was right under Microsoft's nose.</span> <span class="attribution"><span class="source">Heisenberg Media</span></span></figcaption></figure><p>Faced with uncertain times, Microsoft has named Satya Nadella as its new CEO. His appointment follows months of speculation over who would replace longstanding leader Steve Ballmer, who <a href="https://theconversation.com/steve-ballmer-the-hits-and-misses-of-a-microsoft-ceo-17620">retired last year</a>. What is perhaps most striking about the choice to promote Nadella is that Microsoft has decided to opt for a CEO with a background in engineering, as opposed to a traditional management background.</p>
<p>As Nadella settles in, all eyes will be on him to see if an individual with a more technically-oriented background will do a better job of calming internal and shareholder nerves than his predecessor. Microsoft is by no means a struggling business, but it is in a period of market transition and uncertainty is a natural part of any such process. The tech giant is seeking to shift away from its almost total reliance on licensing as an income towards selling more devices.</p>
<p>Nadella is certainly no beginner when it comes to business. He has an MBA and has worked at Microsoft since 1992. He was promoted last year to an executive vice-president position, taking charge of Microsoft’s cloud division. But his roots are in software and engineering – both educationally and professionally.</p>
<p>This casts Nadella in stark contrast to Ballmer, who had a more traditional management background. From running his college football team, Ballmer moved onto a role as an assistant product manager at Procter and Gamble. He later dropped out of the prestigious Stanford graduate school of business to become the 30th employee at Microsoft, following what one would consider a straightforward management pathway across and up the organisation. What Ballmer lacked was status as a direct expert in the science of engineering and development – Microsoft’s core competency. Nadella has that in spades.</p>
<p>Research tells us that, in times of uncertainty, we are more satisfied with leaders who are viewed as holding <a href="http://www.sagepub.com/refbooks/Book226013">expert status</a>. Psychologically, we feel more secure when we perceive that the person giving us advice is an expert in what he or she is giving advice on. These proclivities are more pronounced during times of uncertainty, when we naturally search out even more reassurance. Expert status translates into power and influence – two tools that will allow Nadella to redirect Microsoft as its <a href="http://www.prweb.com/releases/2013/8/prweb11020158.htm">consumer base changes</a>. </p>
<p>Microsoft is one of a number of tech firms that have chosen to place individuals with a strong technical background into the top office. Most of Microsoft’s main rivals are currently run by engineers. Apple has <a href="http://www.apple.com/uk/pr/bios/tim-cook.html">Tim Cook</a> and Yahoo recently made a very high-profile appointment in the form of Marissa Mayer, a computer scientist who spent years at Google before taking charge at Yahoo in the wake of a scandal over her predecessor’s <a href="http://money.cnn.com/2012/05/13/technology/yahoo-ceo-out/">computer science credentials</a>.</p>
<p>IBM is led by engineer Ginni Rometty, while Twitter’s <a href="http://www.businessinsider.com/twitter-ceo-dick-costolo-a-former-comedian-gave-a-commencement-speech-that-will-make-you-lol-2013-5">Dick Costolo</a> has a background in computer science, despite forays into improvisational comedy.</p>
<p>These appointments highlight a trend away from leaders with a background in business or management. It may well be that it is the uncertainty within a transitioning industry that is, in part, driving this trend. Social psychology would suggest this to be the case. As these organisations and their customers change, there is a natural response on the part of both internal and external shareholders to seek out technical experts to address these changes in what is, after all, a technical industry. </p>
<p>It might be a step too far to suggest that we are witnessing the beginnings of the era of the expert leader and the desecration of the generalist CEO but the tech industry is ripe at the moment for individuals like Nadella to draw upon their technical expertise to gain power and rise to higher ranks. Engineers rejoice, the time you spent in the lab at college may just be giving you the competitive advantage that you had been hoping for in business.</p><img src="https://counter.theconversation.com/content/22801/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>David Henderson does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Faced with uncertain times, Microsoft has named Satya Nadella as its new CEO. His appointment follows months of speculation over who would replace longstanding leader Steve Ballmer, who retired last year…David Henderson, Lecturer in Leadership, City, University of LondonLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/211042014-01-02T06:41:57Z2014-01-02T06:41:57ZWatches, glasses and super-tablets: tech predictions for 2014<figure><img src="https://images.theconversation.com/files/38408/original/d4wfv5sj-1387816669.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Such wearable, much wow.</span> <span class="attribution"><span class="source">Thomas Hawk</span></span></figcaption></figure><p>With Microsoft losing its controversial CEO, Apple launching new iPads and iPhones and the rise of wearable devices all making headlines, it’s been another huge year for technology. That’s before you look at the gobbling up of Nokia, Amazon’s embrace of drones and the ongoing NSA affair.</p>
<p>So what were the hits of 2013, and what will this year hold?</p>
<h2>The year of the tablet</h2>
<p>It will be no surprise to discover record numbers of tablet sales over the Christmas period as the lowering cost and increasing power of these devices continues to disrupt PC sales. At the low price end (£100-£150) the better devices are either single use, such as the Kindle ebook reader, or are heavily discounted because of the services offered through the device (such as the <a href="https://theconversation.com/will-consumers-say-bogof-to-the-tesco-tablet-17337">Tesco Hudl</a>). Unfortunately many of these devices are very poor, with manufacturers cutting costs by using cheap plastic casings, unresponsive touch screens or inefficient batteries. </p>
<p>There are many mid range tablets running Google’s operating system, with the Nexus 10 or Sony Xperia standing out in most comparative reviews. These tend to run well out of the box, but could lack the depth and breadth of polished apps that are available on Apple devices. For those prepared to sacrifice a degree of functionality for cost, these devices are ideal.</p>
<p>The top end is still dominated by the Apple iPad, with its “best in class” iPad air or iPad mini. The combination of form factor, faster processor and retina display pushes the price up but still makes this the market leader.</p>
<p>Microsoft is still promoting an alternative model with their Surface 2 tablets - where the tablet also works as a traditional PC. Ensuring these devices can run PC programs places limits on their design, with USB ports and Intel processors affecting the physical shape and battery life. Microsoft has insisted that running Office is a major selling point of these devices – a strategy that was derailed somewhat when <a href="https://theconversation.com/steve-ballmer-the-hits-and-misses-of-a-microsoft-ceo-17620">outgoing CEO Steve Ballmer</a> revealed that development of Office for iPad was progressing.</p>
<p>2014 should continue the trend of advanced features and functionality moving from the high end devices down to the mid or low cost end. It may also be the year where the new form factors - glasses or watches – finally start to arrive.</p>
<h2>Apple</h2>
<p>The recent changes to Apple’s professional level laptops (decreasing weight, adding battery life and reducing cost) have created a degree of overlap with their Macbook Air range. <a href="http://www.digitimes.com/news/a20131223PD210.html">Rumours suggest</a> that Apple may prototype a larger tablet, or a new design of ultra-thin laptops running iOS. This larger form factor with an ARM processor could have 20-30 hours battery life and run iPad/iPhone apps, but not traditional Mac OS X applications, which would be a significant change. </p>
<p>The Apple Watch is still missing, perhaps they’ve realised the number of 20-30 year olds wearing watches has significantly decreased, so the market is not worth pursuing.</p>
<h2>Microsoft</h2>
<p>The new Microsoft CEO will inherit a restructured company that must succeed in the mobile and home market under significant competitive pressure. Hopefully the issues with the XBOX ONE launch (some hardware problems and a limited number of games) will be quickly overcome. </p>
<p>The Surface tablet is starting to look tired compared to the sleeker, lighter alternatives available, so a redesign towards the end of 2014 looks likely. A reduction in price may also make these more desirable. There is a vast market eager for Office to run on Android and Apple devices. The problem is that this would remove one of the significant reasons for purchasing a Surface.</p>
<h2>Google</h2>
<p>2014 will either see Google roll out Glass, or abandon it in favour of some lighter less intrusive technology. Some restaurants and public spaces in America are already placing restrictions on Glass use because of its video recording facility, an issue which is only likely to become more prominent with an increasing number of similar style devices. </p>
<p>In the mobile sector Samsung has become the dominant seller of Android phones with 60% of the market. The issue for Google is that such dominance allows Samsung the ability to control which features they allow through to their customers, which could bring conflict between the two. </p>
<p>The recent <a href="https://theconversation.com/from-the-ashes-of-nokia-jolla-emerges-with-a-new-mobile-offer-20876">Jolla phone</a> may demonstrate the ability of alternative app stores to match Google’s offering - what would happen if Samsung decided it was more profitable to switch their customers away from Google?</p>
<p>All in all, 2014 will see many things that were hinted at in 2013 become more mainstream or die off. It’s unlikely we’ll all be looking at our smart watches through our Google Glasses. But who knows, this time next year I could be declaring 2014 the Year of the <a href="https://theconversation.com/after-the-laughter-comes-a-serious-role-for-the-smartwig-21040">SmartWig</a>. </p><img src="https://counter.theconversation.com/content/21104/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Barry Avery does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>With Microsoft losing its controversial CEO, Apple launching new iPads and iPhones and the rise of wearable devices all making headlines, it’s been another huge year for technology. That’s before you look…Barry Avery, Principal Lecturer, Informatics and Operations , Kingston UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/177742013-09-04T01:26:13Z2013-09-04T01:26:13ZMicrosoft buys Nokia to make its own phones. Will they be that smart?<figure><img src="https://images.theconversation.com/files/30639/original/xwz7x6mf-1378256549.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Microsoft chief Steve Ballmer is taking Nokia's mobile business off the hands of its interim CEO, Risto Siilasmaa.</span> <span class="attribution"><span class="source">AAP</span></span></figcaption></figure><p>In a move that was paradoxically as unexpected as it was inevitable, Finnish mobile phone company Nokia <a href="http://www.businessinsider.com.au/microsoft-buys-nokia-devices-2013-9">has sold</a> its mobile phones business to Microsoft for US$7.2 billion. The deal comes at a time when Nokia continued to struggle to make headway with its Windows-based smartphones against Apple and Google’s Android. Nokia, which <a href="http://www.reuters.com/article/2013/09/03/us-microsoft-nokia-idUSBRE98202V20130903">once commanded</a> 40% of the market, now has less than 15% of the worldwide mobile phone market and less than 3% of the smartphone market.</p>
<p>In addition to the phones, the deal gives Microsoft a non-exclusive licence to Nokia’s patents for ten years.</p>
<p>Stephen Elop, Nokia’s CEO and former Microsoft executive will step down from the role and return to Microsoft to run an expanded devices division. His name has <a href="http://allthingsd.com/20130902/stephen-elop-is-now-microsoft-ceo-candidate-to-beat/">come up</a> as a possible candidate to replace Microsoft CEO Steve Ballmer, who announced his retirement earlier this month. </p>
<p>Opinion is divided as to whether this is a good idea for either company, with <a href="http://gigaom.com/2013/09/03/why-i-think-the-7-2-billion-microsoft-nokia-deal-is-a-terrible-idea/">some seeing</a> it as an act of desperation on the part of both Microsoft and Nokia. On hearing the news, investors <a href="http://au.finance.yahoo.com/q?s=nok&ql=1">boosted</a> Nokia’s share price by 41% while <a href="http://au.finance.yahoo.com/q?s=msft&ql=1">discounting</a> Microsoft’s by 5%.</p>
<p>Microsoft, whose dominance in the PC market has continued to wane as consumers and businesses migrate increasingly to mobile, has faced an uphill struggle trying to break into the mobile market. The original deal with Nokia requiring them to focus exclusively on the Microsoft platform has resulted in only <a href="http://www.news.com.au/breaking-news/world/smartphones-518-of-global-mobiles-sales/story-e6frfkui-1226698719833">small gains</a> in the share of the smartphone market, mainly at the expense of the other ailing smartphone company, BlackBerry. It is very hard to see how it will reach what some <a href="http://www.forbes.com/sites/ewanspence/2013/09/03/after-nokia-purchase-microsoft-must-hit-10-market-share-as-quickly-as-possible/">analysts</a> claim to be an achievable 15% market share within five years. Even the once dominant Apple has struggled to maintain market share against the combination of Google, Android and a range of manufacturers led by Samsung.</p>
<p>Before Microsoft considers the issue of its overall market share, it has more practical problems to overcome. The first challenge is that Nokia’s revenues have been <a href="http://www.theverge.com/2013/7/18/4534124/nokia-q2-2013-financial-report">declining</a> over the past three years, with its last reported quarter resulting in a US$151 million loss. The uncertainty created by the sale may accelerate these losses, combined with the question of what Microsoft will do with all of the feature phones that Nokia sells. Given that this is not core to Microsoft’s business, it will be trying to move people onto smartphones as quickly as possible.</p>
<p>The second challenge is keeping Nokia from disintegrating entirely. The company has been part of Finland’s history for 150 years and by <a href="http://gigaom.com/2013/09/03/why-i-think-the-7-2-billion-microsoft-nokia-deal-is-a-terrible-idea/">some accounts</a> Nokia staff and the Finnish people generally are not entirely happy with the sale. Talented staff may choose to leave rather than work for Microsoft, compounding the difficulty of integrating a European company into Microsoft’s US-based corporate culture. Balancing this is the general acceptance that Nokia’s future was never assured without the sale and so this was perhaps the only option.</p>
<p>The final challenge for Microsoft will be to make sure it doesn’t kill the Nokia brand entirely through pure inertia. As a possibly sobering comparison, and after two years of trying, Google has not <a href="http://www.forbes.com/sites/roberthof/2013/09/03/be-honest-are-you-any-more-likely-to-buy-a-nokia-windows-phone-now/">particularly succeeded</a> in making significant headway with its smartphone company Motorola. Unlike Google though, Microsoft doesn’t have to worry about alienating other smartphone manufacturers by its direct promotion of Nokia. Windows has been largely ignored by other companies and Nokia <a href="http://www.businessinsider.com.au/microsoft-buys-nokia-devices-2013-9">makes up</a> 80% of the Windows smartphone market. Microsoft can afford to not have any other manufacturer offer Windows phones.</p>
<p>Microsoft’s move into phone hardware comes at a time when the smartphone market is maturing and attention is already focused on connected “wearables” like smart watches and glasses. Right on cue, Samsung is today likely to <a href="http://news.cnet.com/8301-1035_3-57600926-94/samsung-unpacked-2-are-we-in-for-a-train-wreck-or-a-triumph/">announce</a> its smart watch “Gear”. Expanding the Android ecosystem and providing a literal extension of the smartphone, the ability for devices to inter-operate will become an increasingly important part of the decision to buy one technology over another. In this regard, companies like Samsung have a huge advantage over Microsoft in that their products cover the spectrum of connected technology, from phones to computers, smart watches, TVs and fridges. On its own, a smartphone these days is simply not that smart.</p>
<p>Overall, Microsoft’s purchase of Nokia has probably extended its life for a few more years. Whether it succeeds in reversing its decline and keeping it off life support is yet to be seen.</p><img src="https://counter.theconversation.com/content/17774/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>David Glance does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In a move that was paradoxically as unexpected as it was inevitable, Finnish mobile phone company Nokia has sold its mobile phones business to Microsoft for US$7.2 billion. The deal comes at a time when…David Glance, Director, Centre for Software Practice, The University of Western AustraliaLicensed as Creative Commons – attribution, no derivatives.