Microsoft 2014: the 5 most interesting stories (so far) Lawsuits and layoffs Microsofts first six months under CEO Satya Nadella have been a monumental period in the companys 39-year history. The year began with the launch of the well-reviewed Surface Pro 3, its finalized acquisition of Nokias devices business, and Nadellas well-publicized emails to his employees outlining his vision for the company. The substantial layoffs announced on July 17th, a ruling on a court case that puts Microsoft at odds with the US government, and, on Friday, a lawsuit filed against rival Samsung have all kept Microsoft in the news during the summer months. 1. Samsung lawsuit: show Microsoft the money Microsofts deputy general counsel David Howard announced August 1st via a blog post on the company website that Microsoft had filed a legal action against Samsung Electronics over royalty payments. At issue is the contract both companies entered into in 2011 that allowed South Korean smartphone maker Samsung to pay a fee to use Microsofts IP - a contract the deputy general counsel states Samsung decided to breach shortly after Microsoft announced its acquisition of the Nokia Devices and Services business in 2013. The AP reports that a redacted copy of the complaint filed in a New York federal court says Samsung had initially refused to issue the royalty payments owed in 2013 and eventually made a late payment in November, minus any interest due. Microsoft and Samsung have a long history of collaboration, Howard writes. In the blog post he says he expects that partnership to continue once the courts have resolved the issue. 2. Legal wrangling part two: privacy in a global age The action against Samsung wasnt Microsofts only legal story in the news this week. A court ruling on Thursday was a setback for Microsoft in its bid to prevent US law enforcement from mandating the turnover of customer emails stored in its data center in Ireland. Judge Loretta A. Preska upheld a judicial order that Microsoft surrender the emails - a ruling Microsoft had challenged, arguing that US law had no jurisdiction over Ireland. The company is planning to pursue an appeal. At issue is the privacy protection of individuals email and the ability of American tech companies to sustain trust around the world, Bradford L. Smith, Microsofts general counsel told The New York Times. The case has been of interest to many other tech firms as its seen as a test case in the age of cloud computing when companies often store data in sites outside the US. 3. The pink slip: Microsoft acquires Nokia, announces layoffs This court ruling mandating Microsoft turn over customer emails comes on the heels of the high-profile layoffs announced by the company via an email from CEO Nadella to his employees on July 17th - the most substantial in the companys 34-year history. Over the next year the company will lay off 4% of its workforce, cutting more than 18,000 jobs, mostly from the companys Nokia division - layoffs that were widely expected after Microsoft completed its acquisition of Nokia Devices and Services business in April of this year. The memo, which was released publicly, states that of the 18,000 jobs lost, Nokia Devices and Services is expected to account for about 12,500 jobs, comprising both professional and factory workers with most employees being notified of their job elimination over the next six months. This move eliminates many duplicate jobs created when the acquisition was completed, but is also in line with Nadellas stated desire for a more nimble company going forward. Tablet wars and Nadellas poetry 4. Tablet wars Microsofts Surface Pro 3 was released to positive reviews in March 2014, improving on its year-old Surface 2 tablet. The device was billed by Microsoft as the tablet that can replace your laptop and touted for being both thinner and lighter than Apples MacBook Air - a clear indicator that Microsoft is in the tablet business for good and committed to carving out a loyal customer base after experiencing relatively lackluster tablet sales in the past. Aimed at the business market, the combination of its Windows 8.1 operating system, touch screen capabilities and option for a detachable keyboard are seen as a game changer for the industry and have made Microsoft a serious competitor in the tablet market that many had assumed would be dominated by the iPad for the foreseeable future. The success of the Surface Pro 3 displays both their bold ambition as well as a focus on their core technologies that made the company successful. Which brings us to the memos. 5. The poet CEO and the memos Microsoft CEO Satya Nadella hasnt achieved Steve Jobs guru status, but hes making waves and gaining respect for his detailed emails to employees that lay out his vision for the company. Nadella, whose Facebook page shows a fondness for both cricket and poetry, has said that he wants the company to be more nimble, transparent, and customer-focused. Its clear the public release of his emails is meant to further that goal. He was unable to be reached for comment for this story. A memo published July 10th, entitled Bold Ambition & Our Core hinted at organizational changes while offering an optimistic view of the company going forward in a mobile-first, cloud-first world. He mentions the importance of the Xbox (as well as gamers) to the companys bottom line, and Microsofts focus on helping its customers get things done. Stuff like painting, writing poetry and expressing ideas, writes Nadella. And stuff like helping build a vaccine for HIV, and giving a voice to the voiceless. He also quotes passages from books that he likes, most notably from The Boys in the Boat by a former Microsoft employee, Daniel James Brown, which compares a rowers swing to poetry: a synthesis of physical effort and an elusive energy that brings harmony. In an age when company CEOs are stereotyped as out-of-touch, inaccessible, and aloof, Nadella has opened the door and invited his employees and the media to share in his vision via his corporate prose-poems and he appears to a be refreshing change at a company not formerly known for its bold vision. If Microsoft continues to make the news at its current pace, 2014 may well be the one of the more interesting years in the companys recent history.
Posted on: Mon, 04 Aug 2014 15:48:55 +0000
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