Microsoft Corporation (MSFT): Could Office Go Outside Windows?

Well, hours after CNBC reported that ValueAct Capital Management threw nearly $2 billion into Microsoft Corporation (NASDAQ:MSFT) today, ValueAct CEO and founder Jeffrey Ubben spoke out about the transaction. Well, OK, maybe not the transaction itself, but as he does lead an activist hedge fund, he at least made some comments that seem to give us some insight into why he would make such an investment.

Ubben discussed Microsoft Corporation (NASDAQ:MSFT) when he made some remarks at the Active-Passive Investor Summit in New York.  What he essentially talked about was what many people already knew about Microsoft – it was not a company built on consumer devices and services. Its bread-and better has been the enterprise and cloud storage and cloud computing, and Ubben said he sees huge potential growth in those area going forward.

Microsoft Corporation (NASDAQ:MSFT) “We see Microsoft’s consumer strategy challenges and say who cares,” Ubben said, adding that the company has established itself as central – the backbone – of most enterprise and small-business networking, and he says that should continue to pay off because of the company’s relative unwillingness to innovate or change. “IT managers don’t want constant change.”

However, he did recognize hat Windows was falling behind due to lagging PC sales, and he went on to say that he believes that Microsoft Corporation (NASDAQ:MSFT) should probably unhook much of its brand from Windows – and that essentially means detaching many of its services from Windows and making them more readily available outside the ecosystem. For example, “Microsoft must consider strongly in the not too distant future making Office available outside Windows,” he said.

Ubben also referred to instant-messaging platform Lync as well as SharePoint as examples of enterprise services that Microsoft does well and should continue for the future – but making them accessible to those outside the Windows ecosystem. Generally, Ubben invests in companies with an activist role where he works with management and the board of directors to fancy changes that he thinks would help share price. While some of his investments have resulted in personnel or managerial moves, his comments may indicate more operational changes with Microsoft Corporation (NASDAQ:MSFT).

For example, he seems to think that Microsoft has quality services like Lync, SharePoint and even Office that could be unhooked from Windows and become heir own services – like, seeing apps for iOS, Android and BlackBerry for each of these services. That could be one way that Microsoft could depend less on Windows success and get its software to a greater public outside of the enterprise or network ecosystem.

How do you feel about Microsoft’s software offerings? Would you use Office on an iOS or Android device if the opportunity was there to use it without needing a Windows environment? Do you see Microsoft Corporation (NASDAQ:MSFT) making a move like this, with or without Ubben’s investment and activism? Let us know your thoughts in the comments section below.

DISCLOSURE: I own no position in any stock mentioned.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!