For Microsoft's business restructuring plan, analysts said yesterday that it does not solve the bureaucracy and slow response to the problem in recent years, the more impossible to stimulate the company's lethargic stock price.
Nevertheless, the reorganization of Microsoft's focus will shift from the desktop to the top of online business, so Microsoft better position themselves to meet the 90 years since the Netscape browser wars after defeating the most powerfulenemy - Google.
Microsoft on Tuesday announced three new super-department in charge of the current seven business segments: Jim Allchin and Kevin Johnson from the leadership of the Ministry of platform products and services; Jeff Raikes led by the commercial business unit and led by Robbie Bach from the Entertainment and DevicesDepartment.
While Microsoft said the restructuring will help improve the "speed of execution", but analysts said it would add another machine of a bureaucracy.
Jupiter Research analyst Joe Wilcox said that Microsoft's current restructuring will only exacerbate rather than reduce the bureaucracy."Microsoft's view is that the three departments to better collaborate," he said."I do not understand why multi-layer structure to increase mutual cooperation can be cultivated."
Allchin's retirement
From the surface, the reorganization is in charge of Windows products because of Jim Allchin is retiring.Next fall he will release new version of Windows after Microsoft withdrew Firewire.
Allchin is responsible departments in the past few years have not fared well, Vista because the development time of up to four years and became a target of public criticism, and other key Microsoft SQL server database management system products are also criticisms that the development process there is no analystorganization.In the past few days, "Forbes" magazine and "Business Weekly" article for Microsoft to be more outspoken on pins and needles.
Independent market research company Directions on Microsoft, said Rob Helm, president, "now form a concept of (Microsoft) have to make major changes."
Analysts said that the current restructuring of this form may not be the real answer, as it will give Microsoft's engineers are spreading false information.Platform Products and Services Division leaders, Johnson is often seen as a business manager position, focusing on the completion of performance, and Allchin is a rigorous style of the engineer.
"Microsoft's engineers have been complaining about too much bureaucracy, and the restructuring is contrary to," Helm said."Engineers will be between the bound as a business manager on top of a very technical department and talking about."
But it also may be just what Microsoft needs.With the product development cycle is longer the delay, Microsoft has found that corporate customers to sign long-term contracts to the difficulty of getting larger."Because the problem of the development cycle, Microsoft on less and less attractive to business customers, because this is basically the next version for product pre-paid," Helm said.
A strong business manager could help Microsoft regain the advantage."It's engineers have not been responsible for the timely release of the software," Helm said."Microsoft needs may be less heroic engineers pay more attention to business."
To online services as the core
In addition, Microsoft is also developing a variety of commercial online services.
"Microsoft has realized that PC is no longer the center of the world," Garban Institutional Equities.'s Analyst Richard Williams said."E-commerce or online services for business customers will be new and important areas of business growth."
Microsoft is expected to counter Google MSN to replace the Windows network as a platform for action of any strategy.Wilcox said, "by MSN with Windows and other servers, software tools more closely with Microsoft to find a comprehensive fight against Google and the whole concept of Web 2.0 standpoint."
Analysts expect the Platform Services Division Kevin Johnson, president of online services from the Ministry of will inspire vitality and to explore how to make the management of services to help Microsoft grow.If Microsoft's online services business plan to achieve it, have the opportunity to substantially increase its stock price, but at least one or two years time to a conclusion.
Severe need strong medicine
Consultant and venture capital firm Peter S. Cohan & Associates founder Peter Cohan suggested that Microsoft should seek more intense solutions, such as splitting the company, in order to recast brilliant."If it is split into several pieces, each piece can become an independent company, which makes Microsoft a more dynamic," he said.
Analysts estimate that this step is unlikely.Microsoft Chairman Bill Gates and CEO Steve Ballmer are giant companies that have sufficient strength to allow them to enter multiple markets.Meanwhile, the company split, and also let Xbox CRM sector difficult to sustain these losses.
Nevertheless, the restructuring plan announced this week is not a problem solution.
"Integration is important, but it makes the whole process slows down, because a number of departments need to sit down and discuss the issue," Cohan said."Microsoft needs to find ways to allow departments smaller, more manageable to solve this problem."