Why This Services Stage?
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Microsoft's services vision came not from incoming Chief Software Architect Ray Ozzie but Chief Executive Steve Ballmer and from an unexpected venue—the company's annual partner conference. Now, why is that? |
The answers are important for understanding exactly what is Microsoft's services strategy and where the company is going with it.
Where's Microsoft's Ray of Services Light? I've heard rumors—and they are just rumors—that Ozzie doesn't have Ballmer's ear the way he does with Microsoft Chairman Bill Gates. Ozzie is supposed to be the shaper of important change, of ensuring Microsoft's continued relevance even as the Web platform (aka Web 2.0) snatches computing and information relevance to the Web. But Ozzie has been decidedly silent about his shape-changing vision. One reason: His vision may not synch with that of Ballmer and his lieutenants, ah, three corporate vice presidents.
Problem: If Ozzie truly is visionary, then he should advocate dramatic change—and software plus services isn't it. That strategy is very status quo, being built up from Microsoft packaged products. His vision, assuming its as grande as outsiders expect, would have to be very unpopular with Microsoft's three presidents. They're masters of three very profitable business groups that practically mint money. The presidents may wonder: What real threat could the Web platform pose? During his partner conference keynote yesterday, Ballmer dismissed the Web browser as a viable client; its indicative of a corporate mindset.
Why Channel the Services Vision? Microsoft skipped several more reasonable venues than its partner conference to lay out its services vision. Microsoft will hold its annual financial analysts meeting in about two weeks, which would be a seemingly more appropriate time and place to reveal the services vision. At first glance, partner conference is a strange venue.
As I explained yesterday, Microsoft's channel is shaping much of the company's services deliverables. On the one hand, the company is dependent on its partners to sell stuff, and naturally would want to include them in any services sales strategy. Microsoft also wants to prevent channel conflict, as it will directly offer many services. By launching during the partner conference, Microsoft put out programs, services and information for partners interested in participating with Microsoft's efforts.
Why is Ballmer Microsoft's Services Oracle? Ballmer and Ozzie may share "chief" in their titles, but only one of them is CEO. Besides the aforementioned conflict-of-vision thing among Ozzie, Ballmer and his lieutenants, Microsoft's CEO is the most appropriate person to lay out the services vision, because:
- The strategy is at least a small reinvention of Microsoft, with expected impact on future revenues.
- Ballmer has taken lots of criticism for Microsoft's languishing stock price. By making the announcement, the CEO communicates that he's in charge.
- By making the announcement, Ballmer communicates that he is thoroughly cognizant of the go-to-services strategy. He also removes any doubt that the services strategy has executive endorsement, which could be as important to winning over Microsoft executives as its customers, partners and shareholders.
As for Ozzie and his continued role, I have no inside insight. But I expect the what's what and the who's who of Microsoft's services strategy will be clearer following the July 26 financial analysts meeting.
Related Posts:
- Ballmer is the New Gates, Microsoft Watch, July 9, 2007
- Channeling Microsoft Hosted Services, Microsoft Watch, July 9, 2007
- Which Comes First, Software or Services?, Microsoft Watch, July 9, 2007
- Is Microsoft's First Customer You?, Microsoft Watch, July 6, 2007
- Live Lives, But How Well?, Microsoft Watch, June 27, 2007
- Microsoft MIXes It Up, Microsoft Watch, April 30, 2007
- Who Pays for Software Plus Services, Microsoft Watch, March 15, 2007
- Google Catfight About 30 Years in the Making, Microsoft Watch, March 6, 2007
- What Is Microsoft's Services Platform?, Microsoft Watch, March 1, 2007
- Ray Ozzie Speaks Out, Microsoft Watch, February 27, 2007
- Google and Long Tail Computing, Microsoft Watch, Feb. 22, 2007
- Sorry, but Live Isn't Dead, Microsoft Watch, December 12, 2006
- It's a Shame About Ray, Microsoft Watch, December 6, 2006
Comments (1)
"I've heard rumors—and they are just rumors—that Ozzie doesn't have Ballmer's ear the way he does with Microsoft Chairman Bill Gates."
The why mention it? It simply makes you look foolish and unprofessional.
"The presidents may wonder: What real threat could the Web platform pose?"
You clearly have ZERO insight into the mindset of MSFT senior management. They are ALWAYS asking what threat any potential competitor or industry evolution could pose. In fact, if anything they're probably too threat-focused.
Posted by Paul | July 12, 2007 12:53 PM