It looks like Microsoft (MSFT) will be getting a new CEO; that is, once Steve Ballmer steps down and their board finds a suitable replacement. The software company announced today that it will be searching for a CEO candidate; a search that will examine both internal and external possibilities. Shares of Microsoft rose after the announcement was made. That being said, what does this leadership change mean for the IT channel, specifically managed service providers?
Microsoft’s Cloud
Microsoft’s battle with Google over messaging and office productivity applications (Office 365 and Google Apps for Business) has been a war with significant collateral damage. Microsoft has been pulling out all the stops to win this battle, including dramatic steps like discontinuing its Small Business Server line, which has been a mainstay for SMB MSPs and customers alike. This move was obviously made in order to push MSPs and customers into Microsoft’s Office 365 cloud offering.
Is Microsoft’s Future with the Public Cloud?
While some people would say that Microsoft cannot survive unless it participates in the public cloud movement, I think Office 365 does have a role to play for customers who a) understand the privacy and security issues, and b) need a fully managed IT experience without the doing the work themselves.
However, Microsoft appears not only willing but happy to cannibalize its “private cloud” capabilities (i.e., removing SMB products like SBS) and favor public cloud options like Office 365. Lest anyone say this move is a surprise, Microsoft has been hatching this idea for a long time.
I recall a few years ago being at Microsoft headquarters in Washington and listening to the software giant explain to a room full of MVPs that the company would both be a service provider and a player in the IT channel. If I had to decide which they are today, I’d probably say they are definitely more of a provider and less a channel player. But, will this be true in a post-Ballmer Microsoft?
Microsoft has a golden opportunity to become a dominant player in the channel and the cloud computing world. While all signs seem to point to its mobile devices and “PC era dominance” as a thing of the past, Microsoft not only has a role, but almost a responsibility to re-enter the IT channel and energize the cloud & MSP community.
How would they do this? Stay focused on what they do best…making software. The private cloud gold rush is about to begin. If Microsoft remains rooted in this public cloud commodity fiasco, it could lose a lot.