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Stephen Elop Would Pull a Nokia On Microsoft

Nerval's Lobster writes "A new Bloomberg report suggests that Stephen Elop, who's apparently on the short list of candidates to replace Steve Ballmer as Microsoft's CEO, would eliminate company projects such as Xbox and Bing while focusing resources on Office. Before he left Microsoft to join Nokia, Elop headed Microsoft's Business Division, so it's no surprise he'd want to focus on Office and the company's other, highly profitable enterprise software. But as head of Nokia, Elop made similarly bold strategic realignments that, while they probably looked good on paper, didn't quite work out. Specifically, Elop decided to abandon Nokia's popular homegrown operating systems, including Symbian, in favor of Microsoft's Windows Phone. That caused Nokia's share of the overall mobile-device market to dive into the single digits. At the time, Elop insisted he made the decision because Symbian and its ilk were incapable of competing in the broader market against Android and iOS; revelations by the Finnish media over the past few months, however, suggest that he'd been offered a generous cash incentive for selling off the company, which gives his 'strategic realignment' (which everyone knew would initially collapse Nokia's market-share, as its product pipeline emptied out) a whiff of self-interest. So while it's likely that a Microsoft run by Elop would make some decisive moves, his previous attempt at game-changing quickly transformed Nokia from a communications powerhouse into a second-tier competitor and (eventually) a Microsoft subsidiary. And by eliminating Bing and Xbox, Microsoft would be giving up completely on the search and gaming markets in favor of becoming more of an enterprise-centric company—something that could please analysts mostly interested in the company's bottom line, but basically an admission of defeat in the consumer realm."

9 of 292 comments (clear)

  1. All in favor of Elop getting the job? by Penguinisto · · Score: 5, Funny

    Yes! Let's watch him do to Microsoft what he did to Nokia!

    But, that said, maybe a breakup and spin-off of non-core divisions is exactly what Microsoft needs. This whole 'chasing Apple/Sony/{$newTechMarket}' thing is slowly killing them.

    --
    Quo usque tandem abutere, Nimbus, patientia nostra?
    1. Re:All in favor of Elop getting the job? by Sir_Sri · · Score: 5, Interesting

      Especially when your 3 biggest competitors would suddenly be two companies long established in the console market (Sony and Nintendo), who both have significant revenue they can operate with, and your other competitor is the guy you just bought the division from - Microsoft, and Windows, who ultimately control most of the underlying technology you rely on.

      Unless sony or Nintendo wanted to buy it no one with much sense would want to buy the Xbox division. I can't really see Sony or Nintendo wanting it other than to shut it down.

    2. Re:All in favor of Elop getting the job? by Stormwatch · · Score: 5, Informative

      Let me tell you why that's bullshit.

      Until late 2010, Nokia's market share was around 70% -- uncontested leader, twice the size of Apple, four times bigger than Samsung, and consistently, immensely profitable. They had the largest ecosystem and the top-selling app store. Carriers and retailers loved Nokia. Customer fidelity was near absolute. Market analysts expected Nokia to remain the leader for years. Maybe Symbian was getting a bit long in the tooth, but MeeGo was on the way.

      After the "burning platforms" and the move to Winblows Phoney, however... their market share collapsed overnight. Users, carriers, and retailers fully rejected it. While the press was drooling over the first MeeGo phone, they gave it a very limited launch and announced that no more would be made. Ratings companies now rank Nokia stock as junk.

      You call this "a fairly good job"? Well, sure, taking in account that this was Elop's true goal all along: to sabotage Nokia, make its stock near worthless so that Microsoft could buy the whole damn thing. He achieved what he meant to, and killed Nokia while doing so.

  2. Wait. What? by Anonymous Coward · · Score: 5, Insightful

    So the plan is he'll gain stewardship of Microsoft and hand it over to... Microsoft?

    Seems a bit redundant

    Oh right we're going to pretend Elop wasn't an infiltrator sent to hasten the ripening of a patent laden company down on it's luck

  3. Please pick Elop.... by Lumpy · · Score: 5, Interesting

    That moron completely destroyed Nokia, he will do the same to Microsoft.

    --
    Do not look at laser with remaining good eye.
    1. Re:Please pick Elop.... by Anonymous Coward · · Score: 5, Funny

      I really doubt you are competent enough to create that much loss that quickly. Elop is a professional, you can't compare with him.

  4. Symbian, really? by chuckugly · · Score: 5, Insightful

    Anyone who thinks Symbian was a decent alternative OS and that abandoning it for virtually ANYTHING else was a mistake needs to have their head examined. In fact I'd credit sticking to Symbian for too long with as much of Nokias problems as anything else.

    1. Re:Symbian, really? by king+neckbeard · · Score: 5, Interesting

      Symbian wasn't a really competitive smartphone OS, but it had a lot of market share and a good transition path towards Maemo/Meego with Qt, which would have been a strong alternative.

      --
      This is my signature. There are many like it, but this one is mine.
  5. Meego to hell by goombah99 · · Score: 5, Funny

    Elop said he will abandon Microsoft's failed attempt to create a modern operating system and simply bet the whole company on getting in bed with Nokia and use their Symbian operating system. Either that or Meego.

    The long term strategy is that after the company craters, Nokia can purchase it for a song, and he can then be tapped to be CEO of Nokia.

    He noted that this strategy has worked in the past. "Nokia's cratered stock price doubled after they sold me off of Microsoft, And I can confidently predict that after I crater microsoft, it's price will double when they sell me back to Nokia."

    He also pointed out that essentially the same strategy was used by Gil Amelio when Apple abandoned it's OS developement and bought Steve's Jobs and his Next OS, shedding Gil in the process.

    "it's proven. Buy another company's OS and bet on it. That's what I know how to do better than anyone."

    --
    Some drink at the fountain of knowledge. Others just gargle.