Former Microsoft CEO Ballmer Insists Windows Phone Needs Android Apps
Microsoft issued reports of its annual revenue run rate – or sales at a particular point in time completed to a yearly rate – for its commercial cloud business and have stated that it is targeting to breach $20 billion mark on that basis by 2018.
Starting from the beginning of its new financial year, Microsoft reported revenue, loss, and operating income in three portions: Productivity and Business Processes, Intelligent Cloud and More Personal Computing.
“The powerful concept of Windows and Windows 10 is that it is one application platform, one store for developers, that then should attract developers to build once and have them run across all the Windows”, Nadella said addressing concerns of a disappointed stakeholder who wanted to know why his Windows Phone doesn’t have all the apps.
The company should disclose profit margins and sales for its cloud and hardware businesses, Microsoft’s former chief executive officer said. Margins for software (which can be duplicated at zero cost) tend to be very high; margins for hardware and cloud services tend to be lower.
Microsoft also said in April it would end its fiscal year with a commercial cloud gross margin of 44 percent.
Microsoft does talk about its cloud progress but it sort of cherry picks the numbers, giving out different user/usage information, revenue or margin information on some of its cloud services and not on others. He was reported as saying that he actually had no idea how the company was doing financially. Instead, he said Microsoft should allow Windows Phones “to run Android apps” in order to attract more developers. One of the audience members questioned the lack of key apps, like one for Starbucks on the company’s Window Phone, to Mr. Nadella. CEO Satya Nadella admitted on Wednesday the company is still falling short when it comes to hiring women and underrepresented minorities.
Chris Suh, Microsoft’s general manager for investor relations, told Bloomberg, “We enjoy a regular dialogue with Steve, and welcome his input and feedback, as we do from our other investors”.
Jesse Jackson, head of the Rainbow/PUSH coalition that fights for civil rights, took to the stage to second Nadella’s comments about the improvement that needs to be made.