Microsoft: The Two Faces of CEO Steve Ballmer
The media remains fixated on Microsoft’s (MSFT) Surface tablet sales failure. Conventional wisdom says CEO Steve Ballmer’s entire company is imploding. But consider these realities: Microsoft’s overall revenues are growing (yes, growing) — not declining. And key business areas like Windows Server, SQL Server, System Center and Lync (yes, especially Lync) continue to enjoy strong growth. Where’s the proof?
Just look at the numbers. During an earnings call last week, Microsoft indicated:
- The Server and Tools business grew revenue 9 percent in Q4 2013 vs. Q4 2012.
- Over 50 percent of Fortune 500 businesses now leverage the Windows Azure cloud in some capacity.
- System Center revenue grew 14 percent, and Microsoft claims Hyper-V continues to take market share from VMware (thoughVMware just announced strong earnings ahead of VMworld).
- SQL Server revenue grew 16 percent.
- Last but not least: Lync revenue grew 30 percent and is now a $1 billion-plus business.
Overall Q4 2013 revenues grew 3 percent — not very impressive. And truth be told, the server application business isn’t growing as quickly as Wall Street expected. But if you read the media coverage, you’d think Microsoft is somehow spiraling toward bankruptcy.
Ballmer definitely deserves a black eye for the $900 million Surface RT tablet write off and mobile mess. But doesn’t he also deserve some credit for Microsoft’s successful transition to collaboration, virtualization and cloud computing?