Microsoft CEO Steve Ballmer announced today that he will be retiring within 12 months. My Forrester colleague Ted Schadler laid out some of the strategic challenges his successor will face in coming years. Here, I add to Ted's analysis.
Microsoft remains one of the great global technology companies, a solid member of theFortune 50. Although it no longer enjoys the reputation for innovation it did in the 1990s, it’s a critical player in every aspect of end user computing (including devices, software, browsers, development platforms, and services) and of other technology product and service markets.
As CEO, Steve Ballmer solidified Microsoft’s stronghold in enterprise solutions. Microsoft built and maintained — or built and made itself into a key challenger — in several enterprise markets. Microsoft Office remains a titanic success, even as it faces lower-cost competition from Google and others. Windows Azure has been cultivated into a full-fledged contender in the cloud services market. Exchange remains entrenched in enterprises, as do many of Microsoft’s Server and Tools offerings. Microsoft remains the company to beat in some of these markets, and has become a formidable challenger (e.g. as Azure takes on Amazon Web Services) in others.
If you want to be the best in data center operations you are right to benchmark yourself against the cloud computing leaders – just don’t delude yourself into thinking you can match them.
In our latest research report, Rich Fichera and I updated a 2007 study that looked at what enterprise infrastructure leaders could learn from the best in the cloud and hosting market. We found that while they may have greater buying power, deeper IT R&D and huge security teams, many of their best practices apply to a standard enterprise data center – or at least part of it.
There are several key differences between you and the cloud leaders, many of which are detailed in the table below. Perhaps the starkest however is that for the clouds, they are the product. And that means they get budgetary priority and R&D attention that I&O leaders in the enterprise can only dream about.