14 DAY TRIAL // Microsoft is getting through a major reorganization process that’s supposed to put the focus on devices and services a little bit more, but more dramatic changes are actually required.
That’s the opinion of Paul Ghaffari, chief investment officer of Vulcan Capital, the company that’s managing the stake of Microsoft co-founder Paul Allen.
In an interview with the Financial Times, Ghaffari explained that Microsoft would do better without some of its products, including Bing and Xbox, as the company would have more resources to focus on its core products, including software and cloud services.
“The search business and even Xbox, which has been a very successful product, are detracting from that. We would want them to focus on their best competencies,” he said.
“My view is there are some parts of that operation they should probably spin out, get rid of, to focus on the enterprise and focus on the cloud.”
What’s more, Ghaffari believes that Microsoft doesn’t need just a single new CEO, but two of them, in order to organize its internal divisions a little bit better. Ford’s head Alan Mulally should work together with some other chief executive that has the necessary know-how in the technology product market, he said.
This isn’t the first time when Microsoft is recommended to get rid of some of its products, as several analysts said that, by discontinuing or selling some products, the company would have more time and resources to improve its key products, such as Windows.
Microsoft on the other hand continues to invest a fortune in making Bing a successful product, as the search engine is now bundled into Windows 8.1 and powers its internal search option.
What’s more, the Xbox division is also playing a key role in Microsoft’s devices and services strategy, with the company getting ready to launch not only a new gaming console, but also a revamped range of accessories.