Microsoft (MSFT) CEO Steve Ballmer said today that he will retire within a year, and that could open the door for the software giant to replace Ballmer with a new executive more focused on mobility. Two insiders whose names may show up on the company’s short list are Qi Lu, executive vice president of apps and services engineering, and Julie Larson-Green, executive vice president of devices and studio engineering. Both of these executives moved into these positions in a recent reorganization.
“It’s clearly time for new leadership and vision at Microsoft,” said analyst Jack Gold. “However, Ballmer will be there for a while yet. If he gets to pick a clone of himself with the same direction and strategy, Microsoft is in big trouble longer term.”
Although Ballmer has successfully led Microsoft through a number of important transitions, the company has struggled to find its footing now that more and more software use is occurring on mobile devices. Its Windows operating system is far behind Apple’s iOS and Google’s Android in market share (although it is growing quickly), and the number of apps available for the Windows operating system is still a fraction of the number available for Android and iOS.
Microsoft’s marketing muscle has helped to generate a nice buzz around Nokia’s Lumia line of Windows phones, but consumers have not fallen in love with the product. However, recent research suggests that an enterprises are responsible for an increasing share of smartphone purchases, and this could play to Microsoft’s strengths. With a new CEO, the company could move forward with plans to make its own smartphone.
The tablet market is key for Microsoft because of the company’s traditional corporate customer base. Sales of the Surface RT and Surface Pro have both been sluggish. Retailers have cut prices on both devices, as has Microsoft itself. The Surface RT uses an ARM-based processor, the chip architecture that powers most mobile devices, and the Surface Pro uses an Intel processor and can run Windows 7 apps, meaning it is compatible with the software many companies are already using.
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