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.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!