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What Steve Ballmer Must Prove This Year to Save His Job

By Don Reisinger on 2012-01-17



Microsoft CEO Steve Ballmer has the next 12 months to prove himself. Or maybe less. Among investors, confidence in Ballmer is slipping. He may not believe that matters much. After all, they’ve been complaining about him for years. But a difficult 2012 for Microsoft could be the final straw that makes for the board replace him with someone new. Ballmer has a little time to make things right and. a host of products are coming this year to help him achieve his goal of turning Microsoft around and cementing its position as the dominant company in the industry again. On his to-do list, Ballmer must get Windows 8-based tablets on store shelves, prove his Nokia deal makes sense, and deliver improvements to his company’s cloud solutions to take on Google. It’s do or die time. Here’s what Ballmer must prove if he wants to save his job.

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1. His Management Changes Were Right


Ballmer has appointed his own leadership team over the past few years. These were changes intended to imprint his mark on Microsoft’s culture. As many of those division leaders deliver products this year, all eyes will be on Ballmer to see if his management decisions were right.

2. Tablets Can Succeed


Microsoft has no presence in the fast-growing tablet market. Ballmer and his team must work hard to bring tablets to the market this year, and make sure that they appeal to customers. If it can’t do that, it might not be long before Microsoft’s board shows Ballmer the door.

3. Windows 8 Can Be A Winner


Windows 8 is a major departure from the designs consumers and enterprise users have grown accustomed to with Windows over the years. Microsoft says that’s a good thing and it will benefit customers. But not everyone is so sure. If Windows 8’s design turns customers off, Ballmer could be in big trouble.

4. The Skype Deal Was Worth It


Last year, Microsoft spent $8.5 billion to acquire Skype, promising that the VoIP provider’s services would be integrated across its product line and take on FaceTime to deliver the kind of communication users are after. Will that really happen? And will customers be happy about it

5. Windows Phone 7 Can Appeal to Consumers


Windows Phone 7 actually watched its market share decline in 2011, and more consumers around the globe turned to Android and iOS. Ballmer says that this year will be different and Microsoft will start gaining ground. But if that doesn’t happen, what else can Microsoft really do to change things in the mobile space? It’s a real problem for both Ballmer and the company.

6. The Nokia Deal Was the Right Play


Last year, Microsoft struck a deal with Nokia calling for Nokia to make Windows Phone 7 the “principal” operating system on the handset maker’s line of devices. Those handsets are now starting to launch in the U.S. Whether they succeed or fail will weigh heavily on Ballmer’s future as Microsoft CEO.

7. He Can Make Employees More Productive


Steve Ballmer likes to talk to employees, get a feeling for what they care about, and inspire loyalty in them that makes them more productive. However, in recent years, his employees have been watching Apple and Google workers run circles around them. Can Ballmer change that this year?

8. There’s A Consumer Strategy Beyond the Xbox


Microsoft’s Xbox 360 is undoubtedly the most popular game console (and maybe even set-top box) in the U.S. right now. But it’s not enough. Microsoft has the living room and home-entertainment markets firmly in its grasp, but it has yet to block competitors out. This year, Ballmer must deliver a strategy for how Microsoft will dominate the living room and entertainment in the home beyond the Xbox.

9. He Can Grow the Online Business


There’s no telling what the future holds for Bing. But if anything is clear, it’s that Microsoft will need to continue to gain ground against Google. Too few people use Bing now and Microsoft’s advertising platform is an also-ran. Ballmer must change that and start putting pressure on Google.

10. He Can Capture the Cloud


Microsoft has a big opportunity with its many cloud services, including Office 365, to capture the cloud market. Google has only half-heartedly delivered enterprise cloud solutions and many other firms, including Oracle, are slow to get there. Now is the time for Microsoft to get the edge. Can Ballmer do it?

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