UPDATE: Microsoft COO: ‘We Are Going To Lead With the Cloud’

SAN FRANCISCO (Dow Jones)–Cloud computing tops a four-point plan Microsoft Corp. (MSFT) has developed for maintaining its position in the business-software market, Kevin Turner, the company’s chief operating officer, said Thursday.

“We are going to lead with the cloud,” Turner said at the Redmond, Wash. software giant’s analyst day. “It helps position Microsoft to sell more on-premise products.”

Microsoft plans to drive sales of its two key franchises, the Windows 7 operating system and the Office 2010 suite of business software, and hopes to improve customer satisfaction and expand market share.

Turner said that Dow Chemical Co. (DOW) and Hyatt Hotels & Resorts, part of Hyatt Hotels Corp. (H), are new customer wins for Microsoft’s cloud products.

“Both of those were very competitive bids against Google (GOOG) and IBM (IBM),” Turner said, calling out a slew of cloud competitors including Salesforce.com Inc. (CRM), VMware Inc. (VMW) and Amazon.com Inc. (AMZN). “Seventy percent of the wins in the cloud that we had in Q4 were new Microsoft customers.”

“Two years ago we were nowhere [in competition with VMware,] Turner added. “What’s Microsoft been able to do in just two years in this space? A 15.2% share gain per [International Data Corp.].”

Officials at VMware weren’t immediately available for comment.

Microsoft’s cloud customers include 13 of the top 20 global telecom firms, the company said, along with 15 of the top 20 global banks and 16 of the top 20 global pharmaceutical companies.

“The sweet spot we have for this company is right in the heart of providing IT as a service for customers,” Turner said. “Some of the biggest companies in the world are choosing Microsoft.”

A lot is expected from Thursday’s meeting as Microsoft struggles to redefine itself.

In recent months, Microsoft killed a high-profile mobile phone project less than two months after its launch, reorganized its entertainment division and saw its market capitalization slip below that of Apple Inc. (AAPL).

For investors, those events seem to have overshadowed that Microsoft is making lots of money and that Windows 7 has sold well. Turner said the latest iteration of the operating system was selling nearly eight copies every second. The company’s fiscal fourth-quarter profit climbed 48% to $4.5 billion.

But while Windows 7 is a big hit, all of Microsoft’s operating systems, as a group, have lost market share in recent years. According to an April estimate from market-watcher Gartner Inc., non-Windows operating systems, such as Linux and Apple’s Macintosh OS, have grown from 3.3% of the market in 2003 to 5.9% of the market currently.

Microsoft shares have dropped 15% so far this year. In early afternoon trading, Microsoft was up 0.3% at $26.21.

-By Jeanette Borzo, Dow Jones Newswires; 415-765-8230; jeanette.borzo@dowjones.com

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

Latest posts by CloudTweaks (see all)

3 Responses to UPDATE: Microsoft COO: ‘We Are Going To Lead With the Cloud’


CloudTweaks Sponsors - Find out more!

Popular

Top Viral Impact

BYOD Will Continue To Define Workplaces In 2014

BYOD Will Continue To Define Workplaces In 2014

BYOD Will Continue To Define Workplaces In 2014 The bring-your-own-device trend has been the subject of scrutiny ever since its initial formation. Given how quickly personal smartphones and tablets became a fixture in everyday life, it makes perfect sense that these mobile machines would slip into workplaces. While BYOD has caused headaches for many businesses,…

Using Big Data To Make Cities Smarter

Using Big Data To Make Cities Smarter

Using Big Data To Make Cities Smarter The city of the future is impeccably documented. Sensors are used to measure air quality, traffic patterns, and crowd movement. Emerging neighborhoods are quickly recognized, public safety threats are found via social networks, and emergencies are dealt with quicklier. Crowdsourcing reduces commuting times, provides people with better transportation…

Cloud Infographic – Monetizing Internet Of Things

Cloud Infographic – Monetizing Internet Of Things

Cloud Infographic – Monetizing Internet Of Things There are many interesting ways in which companies are looking to connect devices to the cloud. From the vehicles to kitchen appliances the internet of things is already a $1.9 trillion dollar market based on research estimates from IDC. Included is a fascinating infographic provided by AriaSystems which shows us some…

Technology Advice Report: 2014 Business Intelligence Buying Trends

Technology Advice Report: 2014 Business Intelligence Buying Trends

Technology Advice Report: 2014 Business Intelligence Buying Trends For nearly every business, the concept of business intelligence is nothing new. Ambitious organizations have been searching for any type of data-driven advantage for some time now – perhaps for as long as they’ve existed. However, the historical use of competitive intelligence pales in comparison to the…


Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

You can help continue to support our community by social sharing, sponsoring, partnering or contributing to this great educational resource.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021
contact@cloudtweaks.com

Join our newsletter