Microsoft’s Steve Ballmer was in fine (fighting) form on stage at the annual Gartner Symposium in Orlando today, punching his hands for emphasis and positively bristling at the suggestion that Microsoft should split its consumer and corporate businesses.
He described a recent Goldman Sachs idea to spin-out the consumer unit as “nutty” and “the second most crazy idea I have ever heard.” Unfortunately he did not tell his audience of about 5,000 senior IT executive what was the craziest.
Mr Ballmer was pressed hard on whether it was possible to serve two masters – the consumer and the company IT department – but insisted that it made no sense to think of Windows users as two distinct groups. Much of the discussion, however, focused on Microsoft’s latest attempt to halt its slumping share of the booming smartphone market with Windows Phone 7.
Despite the apparent skepticism of his interviewers – two senior Gartner analysts – and the ignominious recent failure of its ‘Kin’ handset, Mr Ballmer insisted that Windows Phone 7 would be Microsoft’s next $1bn business, though he did concede that new security and other features were needed to enhance its appeal to corporate users.
Tablets in general, and the iPad in particular, have been a hot topic at the Gartner event this week but Mr Ballmer appeared evasive when it came to discussing Microsoft’s tablet strategy. “I’m not giving any specifics today at the Gartner conference,” he said adding, “If you push me too hard I may do it tomorrow at a Forrester conference. ”
He did, however, confirm that there will be some Windows-powered tablets available by the holiday season but hinted that Microsoft’s big push into this increasingly competitive market is not likely to happen before the launch of Intel’s new OakTrail processor early next year. The key, he said, is long battery life and added, “we need help with both the hardware and software.”
Mr Ballmer was also asked about the recent departure of the company’s chief software architect, Ray Ozzie. Unsurprisingly, he insisted it would have zero effect on the company’s cloud strategy. “We’ve taken a strategic direction anchored in the cloud,” he said. “That vision is our company strategy. It doesn’t live in any one head or mind.”
As for his own future he added, “I’ve got a lot of energy and passion for what I’m doing. “If I ever thought there was a day when the company would be better off without me, I’d leave that day.” Given Microsoft’s recent share price performance, some investors may hope he runs out of energy sooner rather than later.
