Don’t believe the hype about beleaguered Microsoft’s so-called revitalization

“Much has been written about Microsoft’s revitalization under new CEO Satya Nadella,” Patrick Seitz reports for Barron’s. “But Jefferies analyst John DiFucci isn’t buying into the talk that Microsoft has been transformed from a PC-centric software firm to one focused on mobile and cloud computing.”

“DiFucci launched coverage of Microsoft with an underperform rating and a price target of 40. He said that Nadella has done little to address core problems at the company,” Seitz reports. “‘We believe the ‘new’ Microsoft will look very much like the ‘old’ Microsoft for some time,’ DiFucci said in his report. He noted that the majority of Microsoft’s operating profit is still tied to PCs and sees Google Chromebooks and tablets eating into Windows’ computing share.”

Read more in the full article here.

MacDailyNews Take: Somebody gets it.

39 Comments

    1. Well the BBC tech site was trying to sell us this line a few weeks back in an article with not one example of a turn around in its products but instead referred to ‘perception’ and a sense of belief amongst its start all in other words totally subjective twaddle. But then the BBC has been a Microsoft lackey for some time to the point it was old to cut it out by its own Governors a few years back. Thankfully they at least had the sense to sack the Microsoft executive headhunted to transform their IT but who instead lost millions achieving both whatsoever… no change there then with MS managers current or former. So to hear this headline a little later suggests to me that as there is indeed little to no sign of actual transformation that there must have been some sort of marketing impetus from Redmond or its henchmen to create a sense of faith through smoke and mirrors. It would hardly be the first time when thinking back to the zune, various vapour ware, Surface, fat ass tables, overblown Kinect claims and Win phones of various flavours.

      1. Apparently it was ‘Confusion’ that led to thee BBC digital project failure costing 100 million UK pounds http://www.bbc.co.uk/news/entertainment-arts-25925357

        Nothing to do with Microsoft infiltration and corruption at all. And still, the IT doofuses that caused this have yet to serve any prison time for defrauding millions of British tv license payers.

        That supposed ‘lost’ £100 Million is now sitting in Microsofts pocket.

  1. They are still coming out with stupid apps trying to tell people to start working with their tablets when the primary use is for entertainment.
    M$ should use a new slogan:
    “We just don’t get it”

    1. I was watching a replay of the Chargers – Rams game last night. About two thirds through the first half it dawned on me that I hadn’t seen any bright blue Surface tablets in any sideline shots. They were so visible earlier in the season, and now (at least in San Diego) the coaches are back to flipping through paper printouts.

  2. When you are King of the Mountain, you have to protect your mountain all the time with all your best archers and your stock of wood & boiling pots of oil to ward off the invaders.

    Unfortunately, that leaves no one to conceive, design-create & make the firearm that doomed the king.

  3. Ah come on, Microsoft is totally revitalized. All Steve Balmer was doing was reorganizing the deck chairs on the Titanic. Under Nutella’s amazing guidance he’s tossed 5,000 chairs overboard. To top it off those chairs weren’t empty. That’s leadership.

    /shjtt

  4. Finally an analyst with a brain. I too have been scratching my head as to why MSFT has been up so much since Nadella was made king. I don’t see any way he can change the culture enough there to make a difference. Windows 8 could not be a worse os. I HATE Windows!

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