Last week Microsoft CEO Steve Ballmer announced that he will be stepping down in 12 months. Was he pushed out or was it his decision to leave Microsoft? I doubt that the public will ever know the truth. Maybe the autobiography he is potentially writing will provide us with some more detail.
When Ballmer took over from Bill Gates as CEO, Microsoft was at the top of its game. Windows was making billions of dollars, partnerships with Intel were starting to return value and for all intensive purposes courts were where Microsoft was battling their competitors. Compare that to the current state in which Microsoft is in:
- Its flagship software Windows 8 is not selling well. The operating system is not a reflection of the company’s vision (it is supposed to be aimed at mobile devices).
- Microsoft Surface is such a disaster that Microsoft has had to mark it down and give it to universities. The idea was right but the execution was way off.
- Windows Phone is at the moment literally only growing when installed on Nokia devices. This specific product is the biggest failure under Ballmer’s rein. Is this potentially where Ballmer’s successor is going to be found?
- The Xbox has become a very big part of Microsoft’s success. This is the one business that has grown under Ballmer’s direction. Is it a case of a success prior to the Ballmer era?
If one looks at all of Ballmer’s missteps then one wonders how he has survived this long. There are many CEO’s that have been shown the door by doing the same as Ballmer..
What was the final straw for Ballmer? Two things come to mind – He lost a lot of key mobile staff to other businesses (Amazon, Apple and Samsung). Secondly, he was at the beginning of the biggest re-organisation in Microsoft history and I have a feeling that this was the biggest mistake he made. One other thing – name a Microsoft acquisition that made an impact on their finances? (Maybe Yammer and Skype?)
Ballmer is one of the biggest shareholders of Microsoft stock and is super wealthy. He will most probably never have to work again – he will most probably buy a sports team and potentially become an investor into technology businesses in Seattle.
Ballmer wont be missed – he killed a business that has such great opportunity. Who takes over from him? Stephen Elop has been mentioned but the candidate most likely to take over from Ballmer is David Sacks (the founder of Yammer). Microsoft’s next CEO will have plenty to do as Apple, Samsung, Google and Amazon have taken considerable market share away from Microsoft.
