New Telco 2.0 Research: Microsoft's Pivot to a Communications-Centric Business

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Microsoft is a company besieged by disruptive forces. The Wintel model that served them so well is challenged by mobile-first and cloud-native technologies, the consumerisation of the enterprise, and direct competition from an Apple rejuvenated by its decision since the iPhone 3G to develop its own silicon and make a strength of its command of the supply chain.

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Earlier this summer, they were forced to abandon their biggest strategic initiative yet - the strategic partnership with, and then acquisition of, Nokia's smartphone business. This set them back $8.5bn. At the same time, over in the former Online Services division, their parallel effort to compete head-on with Google has racked up $12bn in accrued losses.

This looks like a story of failure, but Microsoft is also in the process of carrying out its own disruptive strategy shift. In the cloud, Azure has developed a strong reputation for quality, and is becoming an increasingly important driver of revenue, while Office 365 has become Microsoft's strongest product. Microsoft has essentially re-focused its strategy, moving from one centred on Windows as a ubiquitous platform, to one centred on communications and collaboration through the Office 365 suite and Skype for Business. And even the Bing businesses are beginning to improve.

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To find out more, click here to read our Microsoft: Pivoting to a Communications-Centric Business Executive Briefing.