Thursday, July 21, 2011

Microsoft FY11Q4 Results

(ring-ring, Mini, ring-ring)

How is this quarter shaping up? First of all, let's review some competitors:

  • IBM: Bang! Third base!
  • Google: Boom! Out of the park, home-run!
  • Apple: Ka-Blam! Out of the city. Game over!

We've already been given a small preview thanks to the Partner conference: good Windows 7 numbers and Windows Phone, as loved as it might be (especially compared to Android) just ain't selling much. And no one is holding out any hopes that current customers will see their Mango update until New Years.

The iPad continues to suck in consumer love and money... money that we'd prefer they send our way but there's nothing comparable for them to buy. Windows 8 ARM tablets? Sometime next year, but what we showed at All Things D is our take of squeezing an elephant into a VW bug. Here's some deep respect and chops to the folks doing all this work, but it's a subtraction game followed by many frustrating conversations about why it's okay not to have certain obvious things work... obviously. And I have to say it's fascinating watching Sinofsky wrangle the Windows organization in this long game of reshaping itself and the consequences it has for the rest of the company.

My one analyst question for today: when the hell is Bing going to stop losing money?!? It appears that the internal hiring spree has finally cooled down so that's good - the piling of warm bodies has stopped (well, only to be replaced by throwing warm bodies on The Cloud because, ah-huck, we're all in). Seriously though, now's the time to start shaking the Bing tree and let the goodness of the search eco-system keep on going and shed the remaining busy work. Come on, if Xbox did it, so can you!

Calibration cacophony: I owe a post about our new review system but I'm not going to put money down about when that's going to happen. In the meantime, I'd love to sit down with each and everyone of you that supposedly told LisaB that the previous review system, with its Exceeded and Achieved and its 20% this and 70% that, was just too durn hard to comprehend. Let's chat. This discuss (*whack* against the side of your head) your results for this year. I'd like to discuss (*whack*) what a peer relative result within a strict percentage based system means. As part of this discussion (*whack* *whack* *whack*) you'll learn that your results are less that what you're used to and the message and your rewards are strictly viewed through your percentile bucket, no matter if you're at the top of your bucket or the bottom. I do seem to have some feedback from your peers to discuss (*whack*) although the majority of it seems to spring from a glowingly content-free "I'll rub your back if you'll rub mine" point of view.

Be careful what you ask for, because the person listening might turn it into one big step backwards. Oh, and for some of you, here's a salary bump.

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