Discussing Satya Nadella and Microsoft in the Spanish media
Spanish journalist Marimar Jiménez of financial daily Cinco Días sent me a few questions by email last Friday about the imminent appointment of Satya Nadella as Microsoft’s new CEO, replacing the disastrous Steve Ballmer, quoting me in her article published today. The article is called “Microsoft chooses a veteran from within to lead its transformation”, while her web article is called “Microsoft closes the Gates-Ballmer era and puts Satya Nadella in charge”.
My first impression is that Nadella is the logical choice and that his appointment makes sense: he knows the company well, and although Microsoft definitely needs to implement some radical changes, the idea that change could be led by somebody from the outside, from a different culture, is unsettling. The people I know from within the company seem to agree that he is open minded and a consensus seeker, and comes from one of the divisions that has genuinely shown that it knows how to adapt its strategy to the times we live in. Coming after a CEO who seemed unable to take time to think things through, who believed he was invincible, and who almost steered the company onto the rocks, we now have somebody who is calm, a planner, and who will hopefully take a mature approach to developing Microsoft’s strategy for the future.
Below, the text of my Q&A with Marimar Jiménez.
Q. What do you think of the appointment? What does he have that the other candidates lacked?
A. Many of us have been talking for some time now about Nadella as the most likely candidate in the field. He is an insider, and less interested in grabbing headlines than his predecessor, but is known to have successfully carried out some of the best projects in the company, despite Ballmer’s constant destruction of Microsoft’s value, who must be the worst CEO in the history of technology companies. Microsoft is a very special company. It is has a solid culture, that despite Ballmer’s efforts, has held firm, and it has high potential value; its internal workings are worth getting to know, and some very impressive professionals on its payroll. If you come from within, you have already covered a lot of the ground in terms of knowing what is going on and who your most talented staff members are. If, furthermore, you come from a division of the company that has performed well, and your career has been lauded, then you are guaranteed a good start and can be sure that your authority will be accepted. At the same time, it is clear that Nadella is a listener, somebody approachable, which is what the organization needs most right now after the convulsions and constant off-the-cuff comments made by Ballmer. Microsoft now needs to look at adding value to its many internal resources, and this is a good way to start doing that.
Q. What are the main challenges the new CEO faces right now?
A. The main challenge is to convince the market that the company knows where it is going and that its strategy is not simply more of the same. Nadella has managed to get a large part of the company looking to the future: now he has to convince the market that he can meet its needs. This means making the company much more open, because real value lies in open architectures and licenses. Your technology provider must offer you transparency and openness; systems based on the value of all their components, whether they are inside or outside the company; speedy developments based on the workings of many pieces organized around a platform; independent developers, etc.
Nadella’s achievement is that many companies now consider Azure to be the right platform for their businesses, so now he needs to consolidate it on the basis of the user’s experiences and perceived value. Furthermore, he needs to complete the transition toward the cloud, which means carrying out a gigantic shift in terms of capacity, and substituting completely the company’s income flows. This is by no means a simple task, and the way it is carried out will determine Microsoft’s relevance in the future, not just in terms of income, but also as a value brand.
Q. Would you say that Microsoft is headed in the right direction: I’m thinking Nokia, cloud strategy… What needs to change?
A. Buying Nokia was not necessarily the smartest move, because Microsoft is now competing with the same companies it wants to persuade to use its system. We’ll see where this leads to: the company might end up losing out in the cellphone market. It is a strategy with parallels to Apple, not to Google, and we all know how the two are shaping up respectively. As far as the cloud is concerned, it seems like a good strategy, because it orients the company toward the future, or rather, the present. It also positions the company as an adequate competitor so that the many companies that use its products can begin undergoing a transition, something that often seems more straightforward—but isn’t necessarily—than changing supplier. If a lot of companies move with Microsoft to the cloud, the company could have a good base to build for the future. If it also carries this strategy out by allowing other companies to join in, then so much the better. Microsoft’s big challenge is to open up: otherwise, it will find itself decreasingly relevant.
(En español, aquí)
