Microsoft's CIO Jumps Ship; Company Considering Focusing on Devices, Services
June 3, 2013 10:49 AM
comment(s) - last by
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
This article is over a month old, voting and posting comments is disabled
That's all rediculous
6/4/2013 5:04:38 PM
In the current sherholders situation we are asked to consider opinion of ~1% stock ownership as "important". This is pure nonsense! How the hell we even hear about David Einhorn's opinios? Does such a minor ownorship realy matters? Not at all - we hear that as there is a strong demand of "brillinat success" set against Microsoft. Success measured agains Apple of course. This is because suddenly the world realized that most of the people do not need any PC - they are idiots completely satisfied with a device good enough to browse Internet, listen to poor quality music (MP3 - a format for average Joe's ear), manage e-mails and play Angry Birds. Bingo - Cupertino has delievered a nice device satisfying this basic needs in an excellent manner. And suddenly, all are expecting Microsoft will jump the ship and become OEM producing such brilliant devices. Oups - for whatever reason Surface was not simple enough for an average American Joe, and new Windows miss "Start Button" so the big sorrow has begun. Dear Microsoft - please tell us why the hell you are not clever enough to deliever devices good for idiots like us?
Arrghhh - I am fed up. Idiocracy rules!
"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay
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
Windows 9 Will Merge Windows, Windows Phone, Windows RT in 2015
July 23, 2014, 3:33 PM
First Public Beta of OS X Yosemite Coming July 24
July 23, 2014, 11:08 AM
Google Promises to Fix 4-year-old Chrome Browser Battery Draining Bug
July 18, 2014, 9:16 AM
Microsoft to Cut 18,000 Employees, Phase Out Nokia X Android Smartphones
July 17, 2014, 9:03 AM
Quick Note: Nokia Devices Now Receiving Windows Phone 8.1 Update
July 15, 2014, 10:42 AM
Windows 9's Metro Start Menu Nears, Images Leak of Newest Build
July 14, 2014, 12:02 PM
Most Popular Articles
Microsoft Kills Entertainment Unit, May Shelve Flagship Lumia "McLaren"
July 18, 2014, 7:40 PM
JJ Abrams Unveils X-Wing Starfighter for New "Star Wars" Movie
July 21, 2014, 12:24 PM
Ford Details ’15 F-150’s 325hp, 2.7L EcoBoost V6; Demonstrates 732-lb Weight Loss
July 22, 2014, 6:55 PM
Comcast Memo: Harassing Customers During Retention Calls Actually IS Our Policy
July 22, 2014, 5:19 PM
Motorola Moto G Successor Reportedly Uncovered, Moto X Discounted by up to $75
July 21, 2014, 1:11 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information