Month: August 2013

Now the truth comes out about Steve Ballmer's exit from Microsoft

SteveBallmerToungThough a statement by Microsoft suggested the forthcoming retirement of Chief Executive Steve Ballmer has been in consideration for some time, a new report says the reality is Ballmer did not intend to leave the company so soon.

The announcement of Ballmer's retirement last week was "neither planned nor as smooth as portrayed," sources indicated to Kara Swisher of AllThingsD. Ballmer was said to be excited in recent weeks over a company-wide restructuring, but in meetings after the announcement of his retirement, he became "uncharacteristically chastened and quiet."

Said to be a critical factor in the decision is the likelihood that activist investor ValueAct could obtain a seat on Microsoft's board. ValueAct has called for a number of changes at the company, including the ouster of Ballmer.

In addition, Microsoft's outgoing CEO is said to have lost the kind of steadfast support he had historically received from former CEO Bill Gates. While Gates didn't "instigate" Ballmer's retirement, he wasn't as much of an advocate as he had been in the past, one source suggested.

Ballmer shocked the tech world last Friday when he announced he would end his 13-year reign over Microsoft. The CEO plans to retire within the next 12 months, once his successor has been chosen.

Microsoft has been routinely criticized for failing to adapt to changes in the tech sector while under the watch of Ballmer. In particular, Microsoft's previously strong stake in smartphones was taken by Apple's iPhone and devices running Google Android, while PC sales have been significantly affected by Apple's iPad.

In an effort to counter the successes seen by Apple in recent years, Ballmer announced a major realignmentof Microsoft in July. The sweeping company-wide restructuring plan is focused on positioning Microsoft has a devices and services company, which Ballmer said at the time would enable it to "innovate with greater speed, efficiency and capability."

Whoever replaces Ballmer will inherit a company under the "One Microsoft" realignment that views the company's product lineup "holistically, not as a set of islands." Ballmer said that the new Microsoft structure will allow "a more coherent message and family of product offerings."

Microsoft's shakeup is the latest major restructuring to hit the tech industry. Google announced its own organization changes in March splitting up the company's mapping and commerce unit, while iOS chief Scott Forstall was ousted from Apple late last year, placing lead designer Jony Ive in charge of the company's mobile operating system.

Steve Ballmer's Full Letter to Employees about leaving Microsoft

SteveBallmerThe below is the full text.

"I am writing to let you know that I will retire as CEO of Microsoft within the next 12 months, after a successor is chosen. There is never a perfect time for this type of transition, but now is the right time. My original thoughts on timing would have had my retirement happen in the middle of our transformation to a devices and services company focused on empowering customers in the activities they value most. We need a CEO who will be here longer term for this new direction. You can read the press release on Microsoft News Center.

This is a time of important transformation for Microsoft. Our new Senior Leadership team is amazing. The strategy we have generated is first class. Our new organization, which is centered on functions and engineering areas, is right for the opportunities and challenges ahead.

SteveBallmerToungMicrosoft is an amazing place. I love this company. I love the way we helped invent and popularize computing and the PC. I love the bigness and boldness of our bets. I love our people and their talent and our willingness to accept and embrace their range of capabilities, including their quirks. I love the way we embrace and work with other companies to change the world and succeed together. I love the breadth and diversity of our customers, from consumer to enterprise, across industries, countries, and people of all backgrounds and age groups.

I am proud of what we have achieved. We have grown from $7.5 million to nearly $78 billion since I joined Microsoft, and we have grown from employing just over 30 people to almost 100,000. I feel good about playing a role in that success and having committed 100 percent emotionally all the way. We have more than 1 billion users and earn a great profit for our shareholders. We have delivered more profit and cash return to shareholders than virtually any other company in history.

I am excited by our mission of empowering the world and believe in our future success. I cherish my Microsoft ownership, and look forward to continuing as one of Microsoft’s largest owners.

This is an emotional and difficult thing for me to do. I take this step in the best interests of the company I love; it is the thing outside of my family and closest friends that matters to me most.

Microsoft has all its best days ahead. Know you are part of the best team in the industry and have the right technology assets. We cannot and will not miss a beat in these transitions. I am focused and driving hard and know I can count on all of you to do the same. Let’s do ourselves proud.

Steve"

Microsoft's CEO Steve Ballmer to retire within the next year

SteveBallmerToungMicrosoft announced on Friday that its chief executive Steve Ballmer will retire within the next 12 months, once his successor has been chosen, bringing to an end a 13-year reign over the software giant.

Ballmer's tenure was a profitable but tumultuous period in which Microsoft pushed into new markets beyond the PC, but also saw its stronghold in smartphones give way to Apple's iPhone and Google's Android. Microsoft has also struggled in recent years against Apple's iPad, which has been eating away at traditional PC sales.

"There is never a perfect time for this type of transition, but now is the right time," Ballmer said in a statement. "We have embarked on a new strategy with a new organization and we have an amazing Senior Leadership Team.

"My original thoughts on timing would have had my retirement happen in the middle of our company’s transformation to a devices and services company. We need a CEO who will be here longer term for this new direction."

Microsoft's Board of Directors have set up a special committee that will find Ballmer's successor. That committee includes former CEO and company founder Bill Gates.

"As a member of the succession planning committee, I’ll work closely with the other members of the board to identify a great new CEO," Gates said. "We’re fortunate to have Steve in his role until the new CEO assumes these duties."

Via: AppleInsider.com / Microsoft.com

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