Latest posts by Dan Patrascu-Baba (see all)
Last week Microsoft CEO, Satya Nadella, announced the reorganization of the Microsoft phone business, a process that will also cause the layoff of around 7.800 employees. A big part of the tech press started to make more or less accurate suppositions about what this means. So I read that phones are not important for Microsoft anymore or that the Nokia deal was a total failure. Strangely enough, most of this suppositions start from correct premises but in my opinion arrive to the wrong conclusions, simply because some analysts fail to see the wider picture and to fully understand the Microsoft strategy.
The first thing to understand is that the whole concept of “mobile” has changed. Nowadays, “mobile” is not about the device anymore, but about the mobility of the experience. And this is precisely the strategy Microsoft is going for: enable a truly great mobile experience across devices. This is why Microsoft invests a lot of effort in apps for Android and Google, apps that are meant to enable users to have a great Microsoft cloud experience even on non Windows devices. Back in the days of the Nokia deal, “mobile” was everything about the device itself. In this perspective, acquiring Nokia was the best thing Microsoft could have done at that time. Sure, expectancies were very high and I personally also thought that this would increase the Windows Phone market share in a consistent way. Continue reading