lundi 18 novembre 2013
samedi 16 novembre 2013
Ballmer reflects on time with Microsoft: ‘I’m big, I’m bald and I’m loud’
Give outgoing Microsoft CEO Steve Ballmer credit: He seems to be very in touch with who he really is. In a lengthy interview with The Wall Street Journal, Ballmer said that he decided to step down from Microsoft because he wasn’t moving fast enough to get the company’s mobile products up to speed with Apple and Google. What’s more, Ballmer’s talks with Ford CEO Alan Mulally made him seriously rethink the way that he’d been running Microsoft during his tenure, which caused him to put more of an effort on teamwork and less on competitive pressure between divisions.
“I’ll remake my whole playbook, I’ll remake my whole brand,” Ballmer explained.
But as Ballmer began to bring his management teams together to forge a sense of unity and solidarity with one another, many apparently didn’t believe that Ballmer was serious about making fundamental changes to the way that Microsoft has traditionally worked.
“I’m big, I’m bald and I’m loud,” Ballmer said, describing his management style. “No matter how fast I want to change, there will be some hesitation from all constituents — employees, directors, investors, partners, vendors, customers, you name it — to believe I’m serious about it, maybe even myself… At the end of the day, we need to break a pattern. Face it: I’m a pattern.”
This is why Ballmer drafted his grand plan for overhauling Microsoft and bringing it closer together as one company before deciding to make his grand exit this past fall. He’s now setting Microsoft up as a devices and services company that he’ll hand off to his successor in 2014 and then ride off into the sunset.
All that said, Ballmer isn’t going to sit by passively during his company’s transition over the next year. In fact, when the Journal asked if he saw himself as a lame duck, Ballmer reportedly started ”jumping up from an interview and lunging forward while pumping his fist forward like a battering ram” while yelling “Charge! Charge! Charge! I’m not going to wimp away from anything!”
If there’s a more fitting coda to the man’s career than this, we can’t think of it.
mercredi 13 novembre 2013
lundi 11 novembre 2013
Analyst – Microsoft rake in $2 billion a year from Android
We’re never overly keen on “analysts” who “estimate” figures, but we’ve known for quite some time that Microsoft have been making a good return from patent royalties.
Put simply, Google have to pay Microsoft a fee for every Android handset because of Microsoft patents used in the OS. The total revenue from that isn’t known, but Nomura analyst Rick Sherlund has done some calculations and reckons that a massive $2 billion per year comes into the company from Android patent royalties.
Rick also estimates that this revenue has a 95% margin, so mostly all profit. Figures detailed in the Entertainment and Devices revenue statement (which includes Xbox and Windows Phone too) showed that the group was always profitable, but if you remove the included $2 billion revenue from Android it leaves a loss of $2.5 billion on Skype, Windows Phone and Xbox.
Effectively, based on these numbers, Microsoft is using the patent cash to hide the huge losses in their mobile and Xbox groups.
BusinessInsider has more details, with the analyst advising that the Xbox group, which is losing $2 billion based on his estimate, should be split into a different group so that we can have greater visibility of the profits. Also, presumably, it would help to backup his guesswork.
mercredi 6 novembre 2013
samedi 2 novembre 2013
vendredi 11 octobre 2013
Microsoft gift cards incoming?
Microsoft have long sold access to their Xbox Live service in the form of cards available at many retail outlets but until now Windows Phone users have been unable to make purchases in the same number of ways that iTunes and Google Play users currently can.
This however looks like it could change if a leak by Twitter user @Nawzil turns out to be correct.
The tweet lists the details of the possible upcoming store cards which says that credit purchased in $10, $25 and $50 increments can be used against a single Microsoft store account in order to purchase games, apps and other available content.
Of course there is nothing detailing UK availability or release dates but it is a pretty good bet that Microsoft won’t want to lag behind the competition for too long on this one.
source: WPCentral
HTC and Microsoft discuss handsets
It is no secret that HTC are struggling, they recently revealed that have made a loss for the first time ever and the leaks and rumours only really point to one device that is rather underwhelming (One Max).
So what do they do next? Android just isn’t working for them, Windows Phone was spoiled by Nokia and their quarterly Microsoft rebate andtheir exclusive apps. There isn’t realistically another option for them.
Apparently Microsoft have been in talks with HTC. Terry Myerson, who is the head of Microsoft’s operating systems unit, apparently asked HTC last month to load Windows Phone as a second option on handsets with Google Android. Another part of the rumour is that Microsoft have offered to waive the license fee as well for these handsets.
All in all I’m not sure what to make of these rumours.
People from HTC and Microsoft would have obviously had a meeting after the recent news about Microsoft buying Nokia, if only to secure them as a future Windows Phone manufacturer. Microsoft and Windows Phone will never succeed with just one in house hardware manufacturer they’ll need to keep HTC, Samsung, Huawei and maybe some other companies onboard. Several months ago we did hear about a Windows Phone version of the HTC One coming with the next update to Windows Phone 8, so it isn’t too far fetched an idea.
The second thing I’m struggling to belive is the rumour of dual booting devices. Yes Microsoft may have mentioned adding Windows Phone onto Android devices, but the hardware constraints and getting Google to play ball would be problematic if not impossible. Imagine having a budget device with its internal memory split in two for two different OSs. It would be a mess. What it does show however is that Microsoft are willing to try anything, even if that includes hitching a ride on Android devices and hoping the user’s feel inquisitive enough about the other OS lurking beneath the surface.
So what is actually happening? I have no idea, I’m guessing that what was more than likely discussed was HTC being asked to offer two versions of each device they manufacture next year. So you’d see what looks like three devices on the shelf ie an HTC One Mini, an HTC One and an HTC One Max each with the option of either Android or Windows Phone installed on it.
Only time will tell, HTC have to do something sharpish if they want to continue in the mobile industry. Whether that move is to cosy up to Microsoft in a bid to raise awareness of Windows Phone, again I’m not sure.
As for Microsoft and Windows Phone they really need to look at their OS and other OSs and see what people do, what people use and what people actually want to do and fix Windows Phone. I’ve been using it for years now and I’m really starting to get annoyed. Every day becomes a compromise to get something done.
All I can say is good luck to HTC as they are going to need it.
Source – Bloomberg
lundi 7 octobre 2013
dimanche 6 octobre 2013
Why Ford CEO Mulally could be the right person to lead Microsoft
With Stephen Elop’s tenure at Nokia now shrouded in controversy, Microsoft may be looking in a different direction when it comes to picking its next CEO. Unnamed sources tell AllThingsD that Ford CEO Alan Mulally has now the frontrunner to take over for outgoing CEO Steve Ballmer at Microsoft. At first blush, Mulally’s history as a former CEO of Boeing Commercial Airplanes and current CEO of Ford would make him seem an unlikely candidate to run a software company that’s transitioning into being a devices and services company like Microsoft. But as AllThingsD notes, Mulally has several things going for him that could make his transition to becoming Microsoft’s CEO easier than anticipated.
First, Mulally served as a close advisor to Ballmer and helped the outgoing Microsoft boss draft plans to restructure the company. Since Mulally already has a good understanding of how the company will look once he steps in it could significantly reduce potential growing pains. More importantly, Mulally’s tenure at Ford shows that he knows how to guide a company through uncertain waters. Ford under his watch was the one major American automaker that didn’t take any federal rescue money and the company returned to profitability shortly after the Great Recession began in 2008.
If Mulally came to Microsoft he’d be inheriting a company that’s at a crossroads, not in a crisis. Microsoft clearly needs to figure out whether its strategy for mobile computing needs reworking and it faces big decisions about what to do with its unprofitable Xbox and Bing enterprises. But as Steve Ballmer himself once said of Mulally, “He understands the fundamentals of business better than anyone I know.”
That kind of ringing endorsement could make him a popular pick for both Microsoft shareholders and Microsoft chairman Bill Gates.
vendredi 4 octobre 2013
dimanche 29 septembre 2013
mercredi 11 septembre 2013
Microsoft may have grown too big to succeed
The biggest challenge for Microsoft over the next year will be finding a CEO capable of running a massive, sprawling company that has often been beset by fierce interdepartmental feuds. The New York Times has an interesting piece that ponders whether Microsoft may now be too big for its own good, especially not that it’s acquired Nokia and is aiming to make its own handsets.
In particular, the Times notes that “Microsoft already has a video game console, the No. 2 Internet search engine, a major Web portal, an enormous corporate software business, an operating system for personal computers, cloud computing services and applications software” and is “a mash-up of the businesses in which competitors like Google, Yahoo, Oracle, Apple and Nintendo specialize.”
Although there are certainly some success stories with tech conglomerates — IBM and Samsung come to mind — the Times points out key differences in their business models. In IBM’s case, the company had to sell off its PC hardware business to stay competitive and focus only on enterprise-centric technology while Samsung gives its different business units much more autonomy than Microsoft traditionally has.
If Microsoft’s next CEO does decide to trim the fat a bit, two likely spinoff contenders are its popular but largely unprofitable Xbox gaming console and its search engine Bing, which has been a notorious money loser for the company.
“It is very hard to be a broad-based tech conglomerate,” Harvard Business School professor David Yoffie tells the Times. “It makes it harder to manage, which is a challenge for Microsoft no matter who the successor is.”
lundi 9 septembre 2013
Microsoft agree to purchase Nokia for $7.17bn
I saw it coming when the partnership was announced 2 years ago, but still this news has totally shocked me this morning.
A cool £4.6 billion has changed hands, which is an amount that’ll put those football transfer payments in the shade.
Ex-Microsoft man, Stephen Elop has stepped down as CEO of Nokia and is now becoming the ‘Executive Vice President of Devices & Services’ with Risto Siilasmaa taking over the CEO role.
There is a press conference arranged for 11am Finnish time today (3rd Sept) where we hope to hear more details on this shocking news for the industry.
Nokia Corporation
Stock Exchange Release
September 3, 2013 at 06.00 (CET +1)
ESPOO, Finland – Nokia Corporation today announced that it has signed an agreement to enter into a transaction whereby Nokia will sell substantially all of its Devices & Services business and licence its patents to Microsoft for EUR 5.44 billion in cash, payable at closing. Nokia expects to book a gain on sale of approximately EUR 3.2 billion, and expects the transaction to be significantly accretive to earnings.
The transaction is expected to close in the first quarter of 2014, subject to approval by Nokia shareholders, regulatory approvals and other customary closing conditions.
Following the transaction, Nokia plans to focus on its three established businesses, each of which is a leader in enabling mobility in its respective market segment: NSN, a leader in network infrastructure and services; HERE, a leader in mapping and location services; and Advanced Technologies, a leader in technology development and licensing. At closing, this transaction is expected to strengthen Nokia’s financial position and provide a solid basis for future investment in these three businesses.
“After a thorough assessment of how to maximize shareholder value, including consideration of a variety of alternatives, we believe this transaction is the best path forward for Nokia and its shareholders,” said Risto Siilasmaa, Chairman of the Nokia Board of Directors and, following today’s announcement, also Nokia interim CEO.
Deal Terms
Subject to the closing of the transaction, Microsoft will acquire substantially all of Nokia’s Devices & Services business, including the Mobile Phones and Smart Devices business units as well as an industry-leading design team, operations including all Nokia Devices & Services production facilities, Devices & Services-related sales and marketing activities, and related support functions. At closing, approximately 32,000 people are expected to transfer to Microsoft, including approximately 4,700 people in Finland. Nokia’s CTO (Chief Technology Office) organization and patent portfolio will remain within the Nokia Group. The operations that are planned to be transferred to Microsoft generated an estimated EUR 14.9 billion, or almost 50%, of Nokia’s net sales for the full year 2012.
As part of the transaction, Nokia will grant Microsoft a 10 year non-exclusive license to its patents as of the time of the closing, and Microsoft will grant Nokia reciprocal rights related to HERE services. In addition, Nokia will grant Microsoft an option to extend this mutual patent agreement to perpetuity. Of the total purchase price of EUR 5.44 billion, EUR 3.79 billion relates to the purchase of substantially all of the Devices & Services business, and EUR 1.65 billion relates to the mutual patent agreement and future option.
Additionally, Microsoft will become a strategic licensee of the HERE platform, and will separately pay Nokia for a four year license. This revenue stream is expected to substantially replace the revenue stream HERE is currently receiving from Nokia’s Devices & Services business internally. If the transaction closes Microsoft is expected to become one of the top three customers of HERE.
Microsoft has agreed to make immediately available to Nokia EUR 1.5 billion of financing in the form of three EUR 500 million tranches of convertible bonds to be issued by Nokia maturing in 5, 6 and 7 years respectively. It is at Nokia’s discretion if it chooses to draw down all or some of these tranches. The financing is not conditional on the transaction closing. If the transaction closes, any outstanding bonds will be redeemed and netted against the deal proceeds by the amount of principal and accrued interest.
The following are the key terms of the three tranches of bonds Nokia may choose to issue:
The first tranche matures in 5 years and has a 1.125% per annum coupon payable semi-annually with an initial conversion price of EUR 3.9338.The second tranche matures in 6 years and has a 2.5% per annum coupon payable semi-annually with an initial conversion price of EUR 4.0851.The third tranche matures in 7 years and has a 3.625% per annum coupon payable semi-annually with an initial conversion price of EUR 4.2364.The Board of Directors of Nokia will separately assess whether to draw down some or all of this financing. If Nokia would decide to utilize this financing option, the earliest that Microsoft could convert any of these bonds to shares is two years from draw down.
Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current Mobile Phones products. Nokia will continue to own and maintain the Nokia brand. Under the terms of the transaction, Microsoft has agreed to a 10 year license arrangement with Nokia to use the Nokia brand on current and subsequently developed products based on the Series 30 and Series 40 operating systems. Upon the closing of the transaction, Nokia would be restricted from licensing the Nokia brand for use in connection with mobile device sales for 30 months and from using the Nokia brand on Nokia’s own mobile devices until December 31, 2015.
The transaction is subject to potential purchase price adjustments, protecting both Nokia and Microsoft, and a USD 750 million termination fee payable by Microsoft to Nokia in the event that the transaction fails to receive necessary regulatory clearances.
Building Nokia’s next chapter
Following the transaction, Nokia plans to focus on its three established businesses, each of which is a leader in enabling mobility in its respective market segment: NSN, a leader in network infrastructure and services; HERE, a leader in mapping and location services; and Advanced Technologies, a leader in technology development and licensing.
Nokia will retain its headquarters in Finland. Excluding the approximately 32,000 people planned to transfer to Microsoft, Nokia would have employed approximately 56,000 people at the end of the second quarter 2013.
“Today is an important moment of change and reinvention for Nokia and its employees,” said Nokia Chairman and interim CEO Mr. Siilasmaa. “With our strong corporate identity, leading assets and talent, and from a position of renewed financial strength, we will build Nokia’s next chapter.”
NSN, a wholly-owned business of Nokia since August 2013, is a leader in mobile broadband, and is focused on operating at the forefront of each generation of mobile technology, including pushing the boundaries of connecting people through LTE and future technologies. Nokia continues to manage NSN as a strong, independent entity.
HERE will continue to focus on growing its industry-leading position through a broad location offering across mobile devices, connected devices, enterprise solutions and the automotive environment. HERE will continue to execute its strategy to become the leading independent location cloud platform company, offering mapping and location services across different screens and operating systems.
Our Advanced Technologies business will build on several of Nokia’s current CTO and Intellectual Property Rights activities.Advanced Technologies will explore new business opportunities through advanced research, development and concept products in areas such as connectivity, sensing and material technologies, as well as web and cloud technologies. At the same time, Advanced Technologies plans to continue to build Nokia’s patent portfolio from this innovation and targets to expand its industry-leading technology licensing program, spanning technologies that enable mobility today and tomorrow.
“Following this transaction, Nokia’s financial situation is expected to be significantly stronger and its earnings profile significantly improved,” said Nokia CFO and interim President Timo Ihamuotila. “We will have three well-positioned businesses, each a leader in its market. Overall, we will continue to focus on managing and maximizing the assets of Nokia Group prudently and pragmatically to create value for Nokia shareholders.”
Historical pro forma information and strategic evaluation
This transaction is expected to be significantly accretive to Nokia earnings. In the first half 2013, Nokia Group net sales were EUR 11.5 billion and non-IFRS operating margin was 4.2%. On a pro forma basis assuming this transaction would have closed, Nokia Group net sales would have been EUR 6.3 billion and non-IFRS operating margin would have been 12.1% in the first half 2013.
PREVIOUSLY PUBLISHED AND PRO FORMA INFORMATIONNokiaGROUP
as previously publishedContinuing Operations
pro formaNokia
GROUP
as previously publishedContinuing
Operations
pro forma
1) The pro forma net sales for continuing operations have been calculated by deducting the Mobile Phones and Smart Devices business units net sales and spare parts net sales from the Nokia Group net sales.
2) Additionally, continuing operations pro forma net sales have been adjusted to reflect the HERE platform license agreement under which Microsoft will separately pay Nokia, as if the transaction had closed on January 1, 2012.
3) The pro forma operating profit % has been calculated by deducting the Mobile Phones and Smart Devices business units costs from the Nokia group costs as well as by making certain cost adjustments between the transferring business and continuing operations to reflect the scope of the transaction.
4) The above figures reflect the retrospective application of IAS 19R, Employee benefits, as published in our 2013 interim reports.
The transaction is also expected to significantly strengthen Nokia’s financial position and Nokia targets to return to being an investment grade company. If this transaction as well as Nokia’s acquisition of 50% of NSN would have closed before the end of the second quarter 2013, Nokia would have ended the quarter with gross cash of EUR 14.9 billion and net cash of EUR 7.8 billion, excluding transaction related expenses and taxes. Assuming repayment of financing facilities related to the NSN acquisition as well as Nokia’s debt facilities of EUR 1.8 billion maturing before the end of the first quarter 2014, Nokia would have ended the second quarter 2013 with gross cash of EUR 11.4 billion and net cash of EUR 7.8 billion, excluding transaction related expenses and taxes. This compares to reported gross cash of EUR 9.5 billion and net cash of EUR 4.1 billion at the end of the second quarter 2013.
Nokia’s Board of Directors is conducting a strategy evaluation for Nokia Group between signing and closing of the transaction. This evaluation will comprise of evaluations of strategies for each of Nokia’s three businesses and possible synergies between them, as well as an evaluation of the optimal corporate and capital structure for Nokia after the closing of the transaction. After this evaluation is complete, deemed excess capital is planned to be distributed to shareholders.
Nokia expects to book a gain on sale of approximately EUR 3.2 billion from the transaction, excluding any potential tax implications, gains or losses related to currency translation differences triggered by the transaction. In connection with the transaction, Nokia will be required to evaluate whether the impact of the sale on future cash flows or operating results requires changes in the carrying values of any of its remaining assets or liabilities. This evaluation will include, among other things, a review of existing goodwill balances for impairment and the potential recoverability of deferred tax assets currently subject to valuation allowance. Additional assets and liabilities may require adjustment upon completion of our review.
Nokia Leadership
Nokia today announced changes to its leadership as a result of the proposed transaction. These changes, which are effective immediately, are designed to provide an appropriate corporate governance structure during the interim period following the announcement of this transaction.
The Nokia Leadership Team will continue to consist of the current members, but with changes in positions and reporting lines as outlined below.
Risto Siilasmaa will assume an interim CEO role for Nokia while continuing to serve in his role as Chairman of the Nokia Board of Directors. As part of his interim CEO role, Mr. Siilasmaa will, among other tasks, oversee strategy and have four direct reports: Michael Halbherr, Executive Vice President, HERE; Stephen Elop, Executive Vice President, Devices & Services; Timo Ihamuotila, Nokia CFO and interim President; and Jesper Ovesen, Executive Chairman of the NSN Board of Directors.
To avoid the perception of any potential conflict of interest between now and the pending closure of the transaction, Stephen Elop will step aside as President and CEO of Nokia Corporation, resign from the Board of Directors, and will become Executive Vice President, Devices & Services. The following Nokia Leadership Team members will report to Mr. Elop: Marko Ahtisaari, Executive Vice President, Design; Jo Harlow, Executive Vice President, Smart Devices; Juha Putkiranta, Executive Vice President, Operations; Timo Toikkanen, Executive Vice President, Mobile Phones; and Chris Weber, Executive Vice President, Sales and Marketing.
Timo Ihamuotila becomes President of Nokia for the interim period while also continuing to serve as CFO. Mr. Ihamuotila will assume the responsibility of chairing the Nokia Leadership Team. The following Nokia Leadership Team members will report to Mr. Ihamuotila: Louise Pentland, Executive Vice President and Chief Legal Officer; Henry Tirri, Executive Vice President and Chief Technology Officer; Juha Äkräs, Executive Vice President, Human Resources; and Kai Öistämö, Executive Vice President, Corporate Development.
We expect that Mr. Elop, Ms. Harlow, Mr. Putkiranta, Mr. Toikkanen, and Mr. Weber would transfer to Microsoft at the anticipated closing.
Mr. Ahtisaari has decided to again pursue entrepreneurial opportunities. He will step down from the Nokia Leadership Team and his position as Executive Vice President, Design, effective as from November 1, 2013. He will continue to work on activities related to the transaction through November 30, 2013. Effective November 1, 2013 Stefan Pannenbecker will start leading Design, reporting to Mr. Elop.
This announcement does not change the current leadership for Nokia Solutions and Networks. Rajeev Suri will continue to serve as CEO, NSN, reporting to NSN’s Board which continues to be chaired by Jesper Ovesen who continues to serve as NSN’s Executive Chairman and reports to Mr. Siilasmaa.
Nokia Board of Directors
To avoid the perception of any potential conflict of interest between now and the pending closure of the transaction, Stephen Elop will resign from the Nokia Board of Directors effective today. The Nokia Board currently consists of the following nine members: Risto Siilasmaa, Chairman; Jouko Karvinen, Vice Chairman; Bruce Brown; Elizabeth Doherty; Henning Kagermann; Helge Lund; Mårten Mickos; Elizabeth Nelson and Kari Stadigh. As a result of Mr. Siilasmaa assuming the interim CEO role, and in line with good corporate governance, Mr. Siilasmaa will no longer be a member and Chairman of the Corporate Governance & Nomination Committee. The Corporate Governance and Nomination Committee currently consists of the following three members: Mr. Kagermann, Mr. Karvinen and Mr. Lund. The Board elected Mr. Karvinen as the Chairman of the Corporate Governance & Nomination Committee. The composition of the Personnel Committee and the Audit Committee remain unchanged.
Extraordinary shareholders meeting and Nokia Board recommendation
Under the terms of the agreement, the closing of the transaction will be subject to approval by Nokia shareholders. Nokia plans to hold an Extraordinary General Meeting on November 19, 2013 and to publish a notice of the meeting and make available more information on the transaction and its background later this month. Having thoroughly analysed the transaction and other alternatives available, the Board of Directors decided to enter into the transaction and recommends that Nokia shareholders vote to confirm and approve the sale of substantially all of the Devices & Services business to Microsoft at the Extraordinary General Meeting.
Investor Conference Call
Today, Nokia executives will hold an investor call at 3.00pm Finnish time. A live webcast of the conference call will be available at http://investors.nokia.com. Media representatives can view the webcast or listen in at +1 706 634 5012, conference ID 45390451.
Press Conference
Nokia will host a press conference today on Tuesday at 11.00 a.m. EET in Dipoli, Espoo (Otakaari 24). Registration will start at 10 a.m., and the doors will open at 10.40 a.m. Due to space constraints, only media who show valid press credentials at the registration will be admitted. Media are encouraged to watch a live webcast of the press conference via: http://press.nokia.com.
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My name is Dan, I am 30yrs old and from Torquay,Devon and have been into phone tech for over 10 years either running sites or taking part in helping others. I was also the official Sony Ericsson blogger for MWC one year.
I am currently using a Nexus 4, Lumia 920 and Xperia T. My main area of expertise on the site is network news and future technologies such as DC-HSDPA and LTE
You can contact me on twitter @mobilemandan or via [email protected]
