Microsoft's CIO Jumps Ship; Company Considering Focusing on Devices, Services
June 3, 2013 10:49 AM
Microsoft CEO Steve Ballmer is under pressure to make big changes
Major executive shakeups continue for the world's largest OS maker
After a half decade with software giant Microsoft Corp. (
) chief information officer (CIO) Tony Scott has left the company. The departure was first revealed via an update to
Mr. Scott's profile
on LinkedIn Corp.'s (
) titular resume site which listed his role at Microsoft as "former CIO". The change was
, which received official confirmation from Microsoft shortly thereafter.
I. Tony Scott Steps Down
Prior to joining Microsoft in 2008, Mr. Scott has served as CIO at The Walt Disney Comp. (
), following executive assignments at General Motors Comp. (
) and Bristol Myers Squibb Comp. (
Mr. Scott had been integral in pushing for heavier use of the so-called "dog-fooding" approach;
a popular approach at Apple
, Inc. (
) and other successful software firms that involves giving test builds of upcoming products to employees to test drive prior to a full commercial rollout. But that role was reportedly diminishing as Microsoft had moved towards consumer-facing cloud-based services like
In a brief statement Mr. Scott commented:
My dad passed away at Easter time, so taking a little time to get my mother re-settled, get my instrument rating done (I’m a pilot), and work on a couple of other long delayed personal projects. Will go back to ‘work’ (in some form) in a few months, but right now just focusing on the above.
Tony Scott, Microsoft's former CIO
Microsoft's IT product and services management vice president, Jim Dubois, will serve as the interim CIO.
II. Continuing Ballmer's "Significant Shift"
While it's unclear who will replace Mr. Scott,
All Things D
's Kara Swisher
that Microsoft's Servers and Tools division president, Satya Nadella; Skype communications division president, Tony Bates; and Interactive Entertainment division president Don Mattrick will be among those that Microsoft CEO Steve Ballmer is considering.
Microsoft's rising stars (left to right): Satya Nadella (Servers and Tools), Tony Bates (Skype), Don Mattrick (Interactive Entertainment)
Mr. Scott's departure is only the latest major shakeup in recent months at Microsoft. In November, Windows division president
Steven Sinofsky hit the road
was subsequently divided between former CFO and CMO Tami Reller on the business/marketing front and by Julie Larson-Green on the software/hardware development front.
Last fall, Mr. Ballmer spoke of big changes at Microsoft commenting:
This is a significant shift, both in what we do and how we see ourselves — as a devices and services company. It impacts how we run the company, how we develop new experiences, and how we take products to market for both consumers and businesses.
The fresh focus on becoming a devices and services company (rather than merely an OS and software firm) comes amid shareholder demands for more of a return on their investment.
III. Investors Demand Change
A subsidiary of Japanese investment house Nomura Holdings, Inc. (
), Nomura Equity Research, has been tracking the dispute. Its analyst Rick Sherlund in a research note pushed Microsoft's management to sell the
a cash-neutral unit
, according to reports) and the
Bing search product
a major money loser
Some investors want Microsoft to sell its Xbox unit.
Disruptive investor David Einhorn has tried to
push for Mr. Ballmer's resignation
and similar big shakeups
since early 2011
. However, with only 0.11 percent of shares (at the time) and with Microsoft
posting a very strong fiscal 2011
his cries fell mostly on deaf ears.
David Einhorn (Greenlight Capital) wants Ballmer's resignation. [Image Source: Value Walk]
slowing PC sales
criticisms about its design direction
with Windows 8, and
have renewed the calls for change. ValueAct Capital Parnters, a firm managed by Jeff Ubben, recently acquired approximately 1 percent of Microsoft shares (for reference CEO Ballmer owns approximately 4 percent of Microsoft shares). Mr. Ubben has joined the push for changes, albeit stopping short of Mr. Einhorn's most draconian demands, such as Mr. Ballmer's resignation.
Thus it appears that while Mr. Ballmer's seat may be secure for now, his executive team and business strategies are slotted for some big shakeups.
LinkedIn [Tony Scott]
All Things D
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
Quick Note: Office 365 Home Premium Hits 1 Million Subscribers in Just Over 100 Days
May 29, 2013, 4:30 PM
Microsoft Announces Voice-Controlled "Xbox One"
May 21, 2013, 12:55 AM
AMD, Microsoft Beat Analyst Estimates, Despite Struggles
April 19, 2013, 12:02 PM
PC Industry Sales Dropped Nearly 14 Percent in Q1 2013
April 11, 2013, 10:13 AM
Microsoft Bing Slipped to Fifth Place in the Global Search Market at the End of 2012
February 8, 2013, 8:28 AM
WhatsUp with WhatsApp?
August 29, 2016, 5:23 AM
Fuchsia – Google’s New Open Source Operating System
August 17, 2016, 6:30 AM
Windows 10: End of an Era & A New Beginning
August 1, 2016, 9:59 AM
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM
Quick Note: Whoops, Microsoft Pushed Unwanted Windows 10 to Some Users
October 15, 2015, 9:04 PM
Quick Note: Windows 10 Insider Preview Build 10565 Fixes Boot Camp 6.0 Issues
October 13, 2015, 11:39 AM
Most Popular Articles
What Can You Do with Your New Echo Dot?
December 3, 2016, 5:00 AM
Sales Battle - Apple iPad Mini vs Samsung Galaxy Tab
November 29, 2016, 12:36 AM
Google Wi-Fi – A Scalable Wi-Fi Solution for any size Home or Apartment
November 30, 2016, 1:00 AM
PIQ ROBOTTM reveals its new artificial intelligence software
November 29, 2016, 12:59 AM
PlayStation 4 Pro – 4K Console for 4K TVs
November 28, 2016, 1:00 AM
Latest Blog Posts
e Guide: Mobile Security for 2017
Dec 6, 2016, 5:00 AM
Apple Car is Not Dead
Dec 5, 2016, 1:00 AM
Dec 4, 2016, 5:00 AM
Dec 3, 2016, 5:00 AM
Dec 2, 2016, 5:00 AM
Surface Ergonomic Keyboard
Dec 1, 2016, 3:01 AM
Chapeconense plane crash: Football rallies around Brazilian Team
Nov 30, 2016, 1:00 AM
How to Extends Your iPhone’s Battery Life
Nov 29, 2016, 12:49 AM
Nov 28, 2016, 1:12 AM
News: Fidel Castro
Nov 27, 2016, 5:00 AM
Nov 26, 2016, 5:00 AM
Changes in Social status affect the way genes turn on and off within immune cells.
Nov 25, 2016, 5:12 AM
Austrian far–right hopeful Hofer may back EU vote.
Nov 24, 2016, 4:00 AM
Final Fantasy XV Leaked Before Nov 29 Launch Date
Nov 23, 2016, 1:00 AM
Nov 22, 2016, 2:26 AM
Nov 21, 2016, 1:00 AM
HTC Makes Big Moves in China
Nov 20, 2016, 2:00 AM
Do you know who is the number one company in the word?
Nov 19, 2016, 5:30 AM
Foldable Cardboard ”EcoHelmet” wins James Dyson Award’s Top Prize
Nov 18, 2016, 2:39 AM
Scientists Discover Roundest Object Ever Spotted in Universe
Nov 17, 2016, 1:00 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information