Microsoft announces that Steve Ballmer will leave the post of CEO in a year. In a surprise move, Microsoft has announced that longtime CEO Steve Ballmer will retire in the next 12 months. He will be in charge of the company until a special committee to appoint a new CEO. The announcement did shake the markets and make the actions of Microsoft should go up about 9%.
“It is never a perfect time for this type of transition, but now is the right time,” Ballmer said in a press release from the company. “We embarked on a new strategy with a new organization and we have an amazing leadership team.
My opinion regarding the “timing” unique in that I would retire would match the midpoint of the transformation of our company into a company dedicated to devices and services. We need a new CEO who will be here long term for this new direction. “
On July 11, Microsoft announced a major reorganization to focus more on hardware. Ballmer signaled this change after firing up the maximum charge time Windows Steve Sinofsky. At the time, he said it was “imperative that we continue to drive strategic alignment among all Microsoft teams, and promote development cycles faster and more integrated into our offerings.”
Instead of separating the company into several divisions (Windows, Office, entertainment, online …), Microsoft is now divided into functions to serve a single purpose (operating systems / operating, devices, applications and services …), deep a structure identical to that of Apple.
That is why today’s news is even more surprising after Ballmer has finally gotten a big change for Microsoft. Moreover, this decision Microsoft may have a disadvantage if his successor does not like this reorganization may have to make more changes and will thus be more lost time (something the company does not have).
Even before speculate that Steve Ballmer would retire, several commentators discussed possible names for a future CEO to Microsoft. Despite being fired, Steven Sinofsky was one of the most powerful executives of Microsoft and many saw him as a successor Ballmer. Julie Larson-Green is another candidate.
Microsoft chose to announce that Ballmer is in is to abandon Microsoft’s top job before appointing a new replacement, which may indicate that its output may come sooner than expected. This means that Microsoft still does not have a concrete idea of who will be the substitute of Ballmer.
Steve Ballmer became CEO of Microsoft after Bill Gates, co-founder leaving the fate of the company in January 2000. Since then, the company has registered success in some products such as Windows XP and Xbox 360. On the other hand, has developed controversial products such as Windows Vista, Kin, Zune, and more recently, the RT surface. Windows 8 also has fallen short of expectations.
Over the past 10 years, the share price of Microsoft practically stagnated, while other companies like Google, Apple or Amazon rose in the stock market. The results may have been financially underwhelming that anticipated retirement of the current CEO. The announcement of the departure of Steve Ballmer of Microsoft destinations caused increase of 9 percent in the company’s shares.