Nadella dumps Ballmer's 'devices and services,' coins his own strategy
Out with the old phrases to describe Microsoft's mission, in with the new
Computerworld - Words matter. And if the words chosen by Microsoft CEO Satya Nadella for the long mission statement he issued Thursday were any guide, the technology firm's two-year-old "devices and services" strategy is dead.
"The most visible sign of this [strategic break with the Ballmer era] is the dismissal of 'devices and services" as the descriptor of Microsoft's strategy and mission," argued Jan Dawson, chief analyst at Jackdaw Research, on his blog Thursday.
Yesterday, Nadella, who took charge of Microsoft five months ago, delivered a 3,100-word email to the company's 130,000 employees that both summarized thoughts he had expressed since his first day on the job and elaborated on his vision of Microsoft's aims and hopes. Microsoft published the message on its website.
Among those thousands of words, Nadella virtually ignored the turns of phrase that his predecessor, Steve Ballmer, had used to describe a switch in corporate strategy that began in October 2012. Then, Ballmer coined the mantra of "devices and services," using the line seven times in a landmark letter to shareholders as he described a pivot from the company's decades-long tradition of selling packaged software.
Until he stepped down on Feb. 2, 2014, Ballmer relied on "devices and services" as the shorthand for the new Microsoft, one that would make its billions selling hardware and both consumer-oriented and enterprise-centric services. The Surface tablet and the Office 365 software-by-subscription push became the poster children for a strategy Ballmer bet on to remake the giant and regain ground it had lost to rivals Apple, Google and Amazon.
As far as Nadella's concerned, "devices and strategy" is yesterday's news.
In his email, Nadella called on the phrase just twice, both times only to dismiss it as irrelevant. "More recently, we have described ourselves as a 'devices and services' company. While the devices and services description was helpful in starting our transformation, we now need to hone in on our unique strategy," Nadella said (emphasis added).
Nor did Nadella retain other Ballmer phrases used in 2013: "family of devices" and "high-value." The former Ballmer rolled out in July of last year when he launched a major corporate reorganization meant to make the "devices and services" mission possible; the latter was prominent in his final letter to shareholders.
Ballmer utilized "family of devices" 10 times just weeks before Microsoft added to the Surface line by announcing it would buy the handset business of Finnish firm Nokia. "High-value" was a buzzword Ballmer called seven times in his shareholder letter, more often than the words "employees" (1), "strategy" (6), "customers" (3), or even "family of devices" (3), the watchword just three months earlier.
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