Microsoft Corporation (NASDAQ:MSFT)’s CEO Satya Nadella hosted the company’s annual shareholders meeting on Wednesday. IHS Senior Mobile Analyst, Daniel Gleeson discussed on Bloomberg TV with Bloomberg’s Anna Edwards and Mark Barton about Nadella’s performance in the shareholders meet and the outlook for the company.
Gleeson pointed out that Nadella is a very calm and composed personality, when compared against Steve Ballmer, former CEO of Microsoft Corporation (NASDAQ:MSFT). He added that Ballmer was a bombastic type and a complete opposite of Nadella. He said that calm and reassuring personality of Nadella might be good for Microsoft Corporation (NASDAQ:MSFT) in long term.
Barton added that Nadella came to this meeting at wake of a very good company performance in the quarter just ended with sales and profits beating estimates. Gleeson said that in spite of slowing PC business, Microsoft Corporation (NASDAQ:MSFT) could get some profits out of it. He talked about the growth in cloud business.
“There is also this feeling that Nadella much more than Steve Ballmer is able to pull all of these pieces together and create a cohesive vision for where Microsoft is going. You look at the last few months of Steve Ballmer’s tenure, they bought Nokia, they bought a few bits and pieces and there wasn’t a clear idea of how everything will fit together. And there is generally a stronger feeling that Nadella has a bigger vision of how everything goes together and where Microsoft is going to be going in 5-10 years,” Gleeson said.
Gleeson mentioned that Microsoft Corporation (NASDAQ:MSFT) is banking on mobile as their Trojan horse. He added that they are looking to promote Windows OS, Bing, Skype and many other products through the Mobile phone business. He also pointed at Microsoft Corporation (NASDAQ:MSFT) change in philosophy of charging license fee for Windows OS as they decided to stop charging license for Windows in Mobile phones. He mentioned that this change in philosophy intend to drive the online services. He feels that online services might provide them a lot of profits and revenues both in mobile and desktops.
Gleeson thinks that Lumia phones are very important for Microsoft Corporation (NASDAQ:MSFT), since it is the only windows phone available in market, where every other competitors are concentrating on Android except for Apple Inc. (NASDAQ:AAPL). He added that Xbox business is also important and gives Microsoft Corporation (NASDAQ:MSFT) a place in the media space. He talked about Microsoft Corporation (NASDAQ:MSFT)’s intention to integrate Skype with Xbox to be able to make it the media hub for the company.
Gleeson said that in 5-10 years people might not think of Microsoft Corporation (NASDAQ:MSFT) as a Windows company. But he added that Windows will still be a major business for them and a lot of emphasis will be given to cloud business.
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