Wednesday, September 27, 2023
Homethe tech betA window on Microsoft's future?

A window on Microsoft’s future?

The PC market continues to die a slow death as tablets and smartphones take over, leaving Microsoft to rethink its strategies and products.

Research firms IDC and Gartner both reported worldwide PC shipments dropped 10 percent in 2013, marking the biggest decline in PC history.

"Microsoft has had to get used to a world in which they're no longer dominating the end-point device, so developing services that work on all different platforms has been really key to this," said Ed Maguire, managing director at CLSA Americas.

"Microsoft is likely to be announcing the next version of the operating system Windows 9 in April at their developer conference and what we're looking for is greater coordination between phone, tablet and PC as part of a unified strategy."

Microsoft has been working on its image as a services company, on top of being a products company. Existing infrastructures such as Office 365 and Azure will allow existing customers to make use of their investments through applications.

"Moving forward, what I expect they will do is to reinforce that services message and really try to play defense with the end points," said Maguire.

On top of its problems with Windows and the declining PC market, there's been ample discussion relating to its search for a new CEO.

(Read more: Microsoft CEO announcement may be sooner than expected)

"I think they do need to look outside the company even though there are some good folks internally. I think the Street wants to see culture change and that's what the company really needs to move forward," Maguire said.

Microsoft delivered quarterly earnings and revenue that surpassed analysts' expectations on Thursday after the bell.

The company posted fiscal second-quarter earnings of 78 cents per share. Revenue was $24.52 billion.

—By CNBC's Christina Medici Scolaro.


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