Microsoft will record a charge in the fourth quarter of fiscal 2015 for the impairment of assets and goodwill in its Phone Hardware segment, related to the NDS business. This charge has no impact on cash flow from operations and is nondeductible for income tax purposes. Based on the new plans, the future prospects for the Phone Hardware segment are below original expectations. Accordingly, the company concluded that an impairment adjustment of its Phone Hardware segment assets and goodwill of approximately $7.6 billion is required.
Microsoft closed on the purchase of mobile phone maker Nokia in April 2014 paying $7.2 billion.
The write-off amount today equals the entire amount (and then some) of their purchase.
Word from the Enterprise Software Podcast that Microsoft Convergence 2015 will target BDM (aka Business Decision Makers). As explained on a recent group call to exhibitors Microsoft will be pulling in “the stack” of products (think Azure, Office, Office 365) and targeting the decision making end users.
This will apparently be the last Convergence with “deep technical content”. Future Convergence events will become “Microsoft Business Events”. One of the keynotes this year is Seth Godin.
According to an article in The New York Times Microsoft has set a goal to bring Business Intelligence to one billion users. Presumably this is going to occur with their Power BI tool which begins rolling out today according to the same article. The new Power BI is clearly aimed at the enterprise market (as evidenced by the confusing list of pricing and prerequisites shown above). Supposedly this is Satya Nadella’s last big project before assuming the CEO role at Microsoft.
Power BI offers ways to move all kinds of data into and out of Excel’s rows and columns, both from corporate databases and from other data sources that Microsoft has gathered by crawling the web, and ways to clean it up so the numbers can work reliably. Public data is stored in Azure, which also serves as a link to proprietary data that corporate customers can look up from the field.
Microsoft is known for software whose primary purpose is to “sell the stack”. In other words to use one additional new piece of Microsoft software there are one ore more prior pieces of Microsoft software or technology which must be used. This works great in the enterprise where most companies are already paying the heavy annual Microsoft tax for maintenance and support plans. I’m not sure it plays so well in consumer land — or that Microsoft will ever be able to keep up with competitors in consumer.
An interesting Cloud Partner Profitability Guide from Microsoft. Pay especially close attention to page 10 as it nicely summarizes the current state of the VAR marketplace and the changes needed to remain profitable. Although technically I don’t believe all these changes are brought on solely by cloud use. In most cases they’re a symptom of a mature ERP market with users who are no longer afraid of technology.
In essence when most of us started as VARS we sold to the first generation technology user. Afraid of technology. Wanting to pay someone to install, train and take care of this strange new ERP technology.
Fast forward to 2014 and we’re now selling to the sons and daughters of the original customers. This new generation doesn’t have the apprehension about technology which was present when most VAR practices were founded. This means change is needed in order to maintain the same (or greater) level of VAR profitability.
I just noticed Microsoft will stream today’s Convergence 2012 keynote by COO Kevin Turner and Kirill Tatarinov, President, Microsoft Business Solutions. While the speeches will undoubtedly be more subdued than those of past (including Microsoft CEO Steve Ballmer’s classics) the overall content can give a good hint as to Microsoft’s ERP direction for 2012-2013.
Not able to attend Convergence this year? We want you to be a part of the Microsoft Dynamics community anyway! Beginning at 9:00am CT on Monday, March 19, we’ll webcast the Opening Keynote with Kevin Turner, Chief Operating Officer, and Kirill Tatarinov, President, Microsoft Business Solutions, both Microsoft Corp. Join us as our company visionaries share a vision of connected, forward-looking organizations and how Microsoft delivers on the promise of enabling people to do their best work, driving data to insight to action – anytime, anywhere — as they seek to make a difference in moving the business forward. The keynote will be webcast from the main page of the Convergence website.
I just spied this press release issue January 31, 2011 announcing that Great Plains founder and former Microsoft Executive Doug Burgum has taken the Interim CEO position at one of his Arthur Ventures Growth Fund, LLC portfolio companies.
In a press release dated January 31, 2011 the company states that a search for a CEO is under way. The company is located in Fargo, ND — and a former high level Sage Executive who reportedly didn’t want to leave Fargo for Orange County is available…