Satya Nadella is not having a good tenure at Microsoft thus far and perhaps he should resign

Christian Matthew

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Satya Nadella is not having a good tenure at Microsoft thus far. I will be fair in saying not everything is his fault and not everything is his doing. He became the CEO of a time period of uncertainty in the Microsoft ecosystem. As well, I am not here to talk about what I think Satya does well (the cloud.)

Before I get to the phone mobile disaster I want to start with the first thing that the newly knighted CEO had to deal with upon starting his tenure.

The first situation that entered into his tenure was the apocalyptic failure of the XBOX ONE release. To be fair, Satya is not directly responsible for it's creation but the handling of it I will certainly put on him.

Let's call the XBOX ONE fiasco RESOLUTION GATE. Who sitting in a room, with not just 1080p TV's in most American households but 4k TV's coming strong on the horizon thought it a good idea to release hardware that can't handle 1080p resolution games. Lets be clear the answer in the war room should have been this and only this. Mark down the damn price... Not by $50 but probably $150 - to - $200.

But here is the part where Satya has failed miserably - APPS APPS APPS APPS APPS. What in gods name does Microsoft not understand about applications? First off, before I get to why the price of the XBOX needed to come down dramatically I want to implore why Microsoft has just failed and failed at producing an environment to just blucking create apps. And this has been the consument issue of why Windows Mobile is failing.

The app situation has always been this way. Desktop programs ARE DEAD. They have no purpose or meaning in most situations. For business and Photoshop fine. But not mobile and not XBOX. For these 2 platforms things need to just work.

The 3 absolute key things for a thriving app development environment is this. 1st a large, growing and healthy user base. 2nd, and ultra easy path for developers to create and submit applications for use. And 3rd an OS for the platform that is rock solid and growing with features and updates. For the first point of a large user base Xbox is not in dire straights but in the 2nd issue of easy path to create apps... it's a failure. Where is HBO NOW? Where Facebook and Twitter for the XBOX? Why are companies not making applications for the XBOX platform? To the third issue of rock solid platform? Well, I don't know if XBOX has any OS issues per se... but the difficulty of the XBOX app situation has to be rooted somewhere? Reports came through when the two platforms of XBOX and PlayStation got release PlayStation had actually done the better job of creating a dev environment that was easy to use and thus create apps.

But Microsoft should be killing it in the console applications department. The have the Universal app story. But it doesn't work the same. The NBC application on XBOX is awesome but it isn't on Windows 10 or Windows 10 mobile. What in tarnation. How does that happen? Then you have a CBS application for Windows 10 and Windows 10 mobile but not for XBOX. It's just ridiculous. The story and or the execution of the universal apps thing just isn't real yet. And why isn't it? It is as if Microsoft is promoting a pipe dream rather than an actual viable development environment.

In terms of Windows phone the user base is dismal. Satya this is solely on you and I will get to it in a moment. Second, the development path is probably not bad here but the user base is so crappy nobody wants to develop applications for the platform.

Rock solid OS? HELL NO. And this is why Satya needs to go. The current and foreseeable state of the Windows Mobile platform is so egregiously bad heads need to role. Someone wrote somewhere that Microsoft has to have mobile or Microsoft won't exist. So how on earth could Satya let things get so bad? Well, even though Steve bought Nokia to the argument of the board - Satya went deep into firing damn near the entire Nokia mobile team. What was result?

A catastrophe of a mobile operating system in Windows 10 mobile. What planet of time frame does Microsoft need to develop software? It is called Microsoft for goodness sake. You could have invented an operating system from scratch in the time it is taking Microsoft to update one and stabilize it.

For this Satya Nadella needs to resign. He is not a visionary at all. And this is what Microsoft needs to do in order to right the ship. And it starts with Azure. Azure is the one weapon that Microsoft has to right this insane ship of destructive blindness to nowhere... The only thing about Azure is that it needs to do more for open source and the ability to create applications in an open source field of technology.

See the kids these days are using node and no-sql on linux boxes rather than sql on windows server boxes. Microsoft needs to double down on starter development for these types of applications and the things that could be helpful towards application development. But see here is the thing - Microsoft has to be able to show the backend technologies it employs can hook into the things that people are using for all types of applications on all platforms. What I am trying to say is... If i use a database I want to be to be able to use that database for all of my platforms... IOS swift/objective C -- Android JAVA -- Windows Mobile C#/VS/+ more. The problem is each one of those software languages works better with a certain DB. Java = oracle - IOS = something and Windows = SQL. Yes you can use SQL with JAVA and probably IOS too but it is one of those things that always involves hurdles. You should see what it takes to use mySQL with a node application.

If Azure could provide innovative ways to share DB's and use DB's across multiple platforms I believe this would greatly help in cross platform development. Don't get me wrong this happens already to a certain extent. Where Azure and Microsoft could do is further develop API hooks so that using DB's can go into various languages and thus platforms easier and easier. This is somewhere Microsoft can innovate and should innovate.

The battle Microsoft should fight is on the pricing situations for hardware. If you have a winner you charge for it... If you're fighting for market-share... suck it up and lower the price until Windows Mobile has a user base.

Next, Microsoft should take an all out war approach to the next version of XBOX and this should be underway like YESTERDAY. Not in a year or two from now but YESTERDAY.

The next version of XBOX should be modular in design. If I want to buy a $1000 graphics card the thing should take my money and allow me to do that. If i want to add more memory or a faster processor I should be able to do this. The next console from Microsoft should be it's last but it should be dynamic and modular.

RIP the microphone out of Kinect. It is TOO FAR AWAY surrounded by sound from the TV. This is why this thing is so bad at voice recognition. Why is this difficult to understand? Kinect should be the "ECHO / ALEXIS" killer but it can't be because its execution is so HORRIBLE.

Kinect could be controlling your whole house but I don't know if Microsoft has the vision to see this through.

I don't think Satya is the person for the job. I just don't get his vision and I surely haven't seen anything through his short tenure to tell me otherwise. Unfortunately he is not the man for the job.

What do you guys think?
 

Lord Method Man

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MS is much, much more than Xbox and Mobile, which seem to be all you care about. Their stock value is up 42% since Nadella took over and their enterprise, Azure, Surface, and Windows offerings are doing great. Everyone on this site wants to crucify Nadella because of their silly little phone platform, as if MS is just a mobile company and nothing else.
 

elindalyne

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Just because you don't understand that even though the XBONE isn't doing as well as the PS4, its still way outselling any previous console generation and the majority of the hit on the XBONE side came because of ridiculous policies from the Ballmer era doesn't mean Nadella should lose his job.

Just because you don't understand that Visual Studio community edition is actually cross platform and allows you to develop for virtually any platform or that you can run .Net code natively on Linux or that you can even run Linux on Azure doesn't mean that Nadella should lose his job.

Nadella has been a giant force of change within Microsoft and is probably the only reason they're still relevant in the world today. Looking from the outside and from the inside, Microsoft is in a much better spot to move forward than it has been ever before. For heaven's sake, people are actually excited about Microsoft now.
 

Angry_Mushroom

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I'll say this as I have said to everyone. If you want a modular console, get a PC. The introduction to of a modular console would likely kill the Xbox Two simply for the fact the consumer would no longer know what he/she is getting. I've always liked that about consoles. I know exactly what I'm getting for x amount of dollars, and someone's mom doesn't have to worry about a console beyond how many gigabytes it has on a harddrive and what games come with it.

That's ignoring the fact that the average consumer would be forced to navigate a confusing maze of hardware choices likely chasing them to Nintendo or Sony, and devs would be forced to either short low end customers of good games, or would all too likely develop for the lowest common denominator... which would put your 1000 dollar graphics card to utter waste. Consoles are consistency in hardware and software.
 

Florin_Anghel

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Wow, this guy really put some effort in writing this, but he did not do any bit of research.
OP, I would suggest you start with CEO function, what it does and what are it's responsibilities. Then I would suggest you read about Microsoft, what this company does, what is it's core essence.
After you finish reading all this, read about the current state of our world regarding technology (eg. IoT).
At the end you will realize that you spent a lot of time writing something that is completely unrelated to what Nadella is doing or what he was appointed for.
 

Spectrum90

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I agree, Nadella is not adding any value to Microsoft. Cutting costs and firing people is not enough.

Microsoft is not successful in the cloud, Azure is an small insignificant competitor compared to Amazon Aws.
 

Laura Knotek

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Shareholders aren't going to fire a CEO when they are making much more money now than they had in the past. A publicly traded company's first responsibility is to its shareholders.
 

HeyCori

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I will say, with Microsoft's recent acquisitions, Nadella is doing a GREAT job at stocking Microsoft's war chest.
 

elindalyne

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Microsoft is not making more money with Nadella, the peak was FY 2014.

Yearly Income Statements - Investor Relations - Microsoft

Um... Revenue was up in FY2015... which is super impressive considering they had a $7 billion write down in FY2015. Get rid of that write down and earnings/share should be higher. Remember, FY2015 was a restructuring year and lo and behold, if you add the cost from Impairment, integration and restructuring to the net income, you actually get a higher net income than you got in FY2014.

But hey it's cool.. Microsoft is going to do a $10B restructure every year under Nadella right????
 

Spectrum90

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Um... Revenue was up in FY2015... which is super impressive considering they had a $7 billion write down in FY2015. Get rid of that write down and earnings/share should be higher. Remember, FY2015 was a restructuring year and lo and behold, if you add the cost from Impairment, integration and restructuring to the net income, you actually get a higher net income than you got in FY2014.

But hey it's cool.. Microsoft is going to do a $10B restructure every year under Nadella right????

A write down of intangible assets doesn't impact revenue.
The revenue growth in FY15 was caused by the acquisition of Nokia devices unit. There is nothing impressive about that.

It wasn't just a write down. Microsoft incurred in restructuring cost of firing thousands of workers. Excluding those charges, net income in FY15 would be up $3 million from FY14, but that's not fair comparison because FY15 benefited from those layoffs.

Look at these numbers including FY16.

Revenue (first six months)
FY14 $43,048
FY15 $49,671
FY16 $44,175

Operative income (first six months)
FY14 $14,303 >> Impairment and restructuring: $0
FY15 $15,003 >> Excluding Impairment and restructuring of $1,383
FY16 $11,819 >> Impairment and restructuring: $0

Net income (first six months)
FY14 $11,802 >> Impairment and restructuring: $0
FY15 $11,768 >> Excluding Impairment and restructuring of $1,383
FY16 $9,618 >> Impairment and restructuring: $0

Is net income increasing with Nadella?
NO. Nadella is not adding any value to the company. He's just managing the business that Gates and Ballmer created and killing any project that doesn't produce immediate results.

Nadella is only good for destroying things and firing people, but as you see that's not enough for Microsoft.
 

fatclue_98

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Nadella is not adding any value to the company. He's just managing the business that Gates and Ballmer created and killing any project that doesn't produce immediate results.
Trimming the fat is Job One for any executive. As for adding value, I'm sure the shareholders will disagree with you.
 

Guytronic

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He answers to the money first and foremost just like any CEO.

Few at our level know the true realities of managing something like Microsoft.
Mr. Nadellas job entails so much more than small minded thinking.
A narrow vision just isn't an option for global survival.

I'm thinking the cuts were decided on during Ballmer's exit and Mr. Nadella was named as the hatchet man.
 
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