Microsoft's new mission statement revealed in email, will 'make some tough choices'

One week after Microsoft announced some major changes in its executive ranks and structure, its CEO Satya Nadella has sent out an internal email to its 118,000 employees. The email reveals a new mission statement for the company, but Nadella also warns that Microsoft will "make some tough choices in areas where things are not working."

GeekWire obtained a copy of the internal email from Nadella, which Microsoft is electing not to release publicly. Nadella reveals the company's new mission statement in the first part of the email:

"Every great company has an enduring mission. Our mission is to empower every person and every organization on the planet to achieve more. I'm proud to share that this is our new official mission statement. This mission is ambitious and at the core of what our customers deeply care about. We have unique capability in harmonizing the needs of both individuals and organizations. This is in our DNA. We also deeply care about taking things global and making a difference in lives and organizations in all corners of the planet."

At the end of the email, Nadella writes about his goals for Microsoft:

"I believe that culture is not static. It evolves every day based on the behaviors of everyone in the organization. We are in an incredible position to seize new growth this year. We will need to innovate in new areas, execute against our plans, make some tough choices in areas where things are not working and solve hard problems in ways that drive customer value. I really do believe that we can achieve magical things when we come together as one team and focus. I'm looking forward to what we can achieve together in FY16."

It's possible the mention of "some tough choices in areas where things are not working" could be in reference to upcoming financial write-offs when Microsoft begins its 2016 fiscal year on July 1. The full text of Nadella's email is below:

Team,

I believe that we can do magical things when we come together with a shared mission, clear strategy, and a culture that brings out the best in us individually and collectively. Last week I shared how we are aligning our structure to our strategy. Today, I want to share more on the overall context and connective tissue between our mission, worldview, strategy and culture. It is critical that we start the new fiscal year with this shared vision on what we can do and who we want to become.

Mission. Every great company has an enduring mission. Our mission is to empower every person and every organization on the planet to achieve more. I'm proud to share that this is our new official mission statement. This mission is ambitious and at the core of what our customers deeply care about. We have unique capability in harmonizing the needs of both individuals and organizations. This is in our DNA. We also deeply care about taking things global and making a difference in lives and organizations in all corners of the planet.

Worldview. We must always ground our mission in both the world in which we live and the future we strive to create. Today, we live in a mobile-first, cloud-first world, and the transformation we are driving across our businesses is designed to enable Microsoft and our customers to thrive in this world. It's important to note that our worldview for mobile-first is not just about the mobility of devices; it's centered on the mobility of experiences that, in turn, are orchestrated by the cloud. That is why we think of these two trends together. What we do with our products and business models has to account for this fundamental transformation.

Strategy and ambitions. Our strategy is to build best-in-class platforms and productivity services for a mobile-first, cloud-first world. Our platforms will harmonize the interests of end users, developers and IT better than any competing ecosystem or platform. We will realize our mission and strategy by investing in three interconnected and bold ambitions.

  1. Reinvent productivity and business processes
  2. Build the intelligent cloud platform
  3. Create more personal computing

These ambitions utilize a unique set of assets that span productivity services, cloud platform, our device platform and our family of devices. There is an explicit path dependence on how we achieve the "inter-connectedness" between the various elements of our strategy to gain momentum.

· First, we will reinvent productivity services for digital work that span all devices. We will also extend our experience footprint by building more business process experiences, integrated into content authoring and consumption, communication and collaboration tools. We will drive scale and usage by appealing to "dual-use" customers, providing productivity services that enable them to accomplish more at work and in the rest of their life activities with other people.

· Second, all these experiences will be powered by our cloud platform – a cloud that provides our customers faster time to value, improved agility and cost reduction, and solutions that differentiate their business. We'll further provide a powerful extensibility model that is attractive to third-party developers and enterprises. This in turn enables us to attract applications to our cloud platform and attach our differentiated capabilities such as identity management, rich data management, machine learning and advanced analytics.

· Finally, we will build the best instantiation of this vision through our Windows device platform and our devices, which will serve to delight our customers, increase distribution of our services, drive gross margin, enable fundamentally new product categories, and generate opportunity for the Windows ecosystem more broadly. We will pursue our gaming ambition as part of this broader vision for Windows and increase its appeal to consumers. We will bring together Xbox Live and our first-party gaming efforts across PC, console, mobile and new categories like HoloLens into one integrated play.

Strength across all the ambitions enables us to deliver high value to our customers while providing us with the ability to differentiate ourselves from our competitors.

Culture. Perhaps the most important driver of success is culture. Over the past year, we've challenged ourselves to think about our core mission, our soul — what would be lost if we disappeared. That work resulted in the mission, strategy and ambitions articulated above. However, we also asked ourselves, what culture do we want to foster that will enable us to achieve these goals?

We fundamentally believe that we need a culture founded in a growth mindset. It starts with a belief that everyone can grow and develop; that potential is nurtured, not predetermined; and that anyone can change their mindset. Leadership is about bringing out the best in people, where everyone is bringing their A game and finding deep meaning in their work. We need to be always learning and insatiably curious. We need to be willing to lean in to uncertainty, take risks and move quickly when we make mistakes, recognizing failure happens along the way to mastery. And we need to be open to the ideas of others, where the success of others does not diminish our own.

We have the opportunity to exercise our growth mindset every day in three distinct areas:

· Customer-obsessed. We will learn about our customers and their businesses with a beginner's mind and then bring solutions that meet their needs. We will be insatiable in our desire to learn from the outside and bring that knowledge into Microsoft, while still innovating to surprise and delight our users.

· Diverse and inclusive. The world is diverse. We will better serve everyone on the planet by representing everyone on the planet. We will be open to learning our own biases and changing our behaviors so we can tap into the collective power of everyone at Microsoft. We don't just value differences, we seek them out, we invite them in. And as a result, our ideas are better, our products are better and our customers are better served.

· One Microsoft. We are a family of individuals united by a single, shared mission. It's our ability to work together that makes our dreams believable and, ultimately, achievable. We will build on the ideas of others and collaborate across boundaries to bring the best of Microsoft to our customers as one. We are proud to be part of team Microsoft.

If we do all of this, we will achieve our mission to empower every person and organization on the planet. Beyond that, we will make a difference and find deep meaning in our work. We stand in awe of what humans dare to achieve, and we are motivated every day to empower others to achieve more through our technology and innovation.

When we come together as a team, with our exceptional talent and the mindset of a learner, we will grow as individuals, we will grow as a team, we will grow with our customers and partners, we will grow our opportunity, and we will grow our business going forward. And, ultimately, we will grow the impact we have in the world.

We've already started this evolution with things like OneWeek and Hackathon, customer feedback loops, our focus on usage in the engineering teams, our performance review model, as well as our diversity and inclusion efforts including the new unconscious bias training. We will do more and more to support the culture we have and recognize impact when we see it.

A good example of our culture in action right now is the work around Windows. We have approached Windows 10 with a growth mindset and obsession for our customers. We have the opportunity to connect with 1.5 billion Windows customers in 190 countries around the globe. We aspire to move people from needing Windows to choosing Windows to loving Windows. … Certainly we want to upgrade as many of our current Windows 7 and 8.1 customers to Windows 10 as possible through our free upgrade offer. More than that, though, we see this as an opportunity to support and celebrate how people and communities upgrade their world every day. To that end, starting on July 29 when Windows 10 becomes available, employees are invited to volunteer some time and upgrade their communities as part of the broader movement. More details will be available in the coming weeks — our hope is that not only our employees, but customers and partners as well, will get involved and be inspired. Together, we can make a big difference in our world.

I believe that culture is not static. It evolves every day based on the behaviors of everyone in the organization. We are in an incredible position to seize new growth this year. We will need to innovate in new areas, execute against our plans, make some tough choices in areas where things are not working and solve hard problems in ways that drive customer value. I really do believe that we can achieve magical things when we come together as one team and focus. I'm looking forward to what we can achieve together in FY16.

Satya

Source: GeekWire

John Callaham
350 Comments
  • Lets hope nothing related to windows phone.
  • I doubt they would kill Windows Phone before seeing what effect Windows 10 Mobile and any new flagships have on the market.
  • I dont know. We expected stuff to change with Windows 8 after they left the Windows 7 people behind on mobile.
  • Yes they left WIndows phone 7, user got mad, and that's the mistake they'll never repeat.
  • On an insider tip, WP isn't going anywhere!
  • "We also deeply care about taking things global and making a difference in lives and organizations in all corners of the planet." LOL Nadella, comedy genius. Its lack of global penetration that makes many people irate in these here comments sections. No Xbox Music service. Bing rewards, USA only? Come on, they aren't always global.
  • I thought the joke was that the planet doesn't have corners because it's round (ish).
  • Both Xbox Music and Bing Rewards are very small services. I can't speak for Microsoft, but I understand why they aren't global.
  • +735 I don't understand why Google and Apple have many services here in Latin America, but Microsoft not.
  • Don't forget Cortana..... There are more chances of experiencing Cortana in your region using iOS/Android than staying on Windows/WP
  • Thats a complex reply. You meant "not going to change" (and I hope it does evolve) or the opposite? :-P
  • An insider tip, yeah? Anything else you can tell us about that?
  • They just did repeat it with windows RT not getting windows 10
  • I still believe that Windows RT users wil get some form of Windows 10 Mobile adapted to the 10 inch screensize of the Surface RT and Surface 2. That all the fuzz is for nothing. Windows RT users wil lose there desktop enviourment, but would still be able to buy Windows Store apps and do all the things the now do.  
  • They have already said that they are not upgrading RT to Win10... They will get some W10 functionality, but I doubt it would be the ability to run W10 Universal apps
  • Why not? It should be possible. Becouse both OS's share the same core (Something that wasn't the case with WP7) So there is no reason to think it would not be possible to use universal apps on Surface RT and 2.
  • Those are the tough choices that have to be made.  Pissing off the minority in order to get an edge with the majority.  Windows 10 is trying to get around that by giving options.  But things like hamburger menu for example, that's not going away.  It's a tough choice for them.  Then there's the fact that 512mb devices are likely going to have very little support as the future moves forward.  People will need to upgrade for additional features. Sure MS makes a lot off other mobile platforms but they could make that much more if people are selling apps in their store. This is not something they will give up on.  The tough choices will simply be those that leave certain users in the dust.
  • I don't think Microsoft CEO's focus is so granular. If he makes a decision it will be about devices or mobile as a whole not about 512mb devices or hamburger menues, there are other people to focus on those
  • Actually, Microsoft left their customers behind on Windows Mobile, THEN on WinPhone 7, so their track record is that they talk a good game about mobile but abandon their customers without much concern. Not a good idea to wrote a memo that sounds like subverting Basket would have written just before killing WinMo.
  • Come on man people get new phones after 2-3 years, new features making it to old hardware is uncommon in the tech industry
  • Also, before that, they abandoned a lot of Windows XP users with the launch of Vista with its high minimum requirements. I was one of those. Then I got myself a Lumia 800 and got abandoned when Windows Phone 7.8 & Windows Phone 8 came out. So they got me twice now, so far.
  • But that was after they left behind WIndows Mobile 6.5 users. So....
  • I feel like Windows 10 is what we wanted Windows Phone 8 to be.   We wanted all of the work on Windows to translate into Windows Phone Apps.  Very little of that has happened.    Now that Windows 10 and Windows 10 Mobile are literally running the same apps and we're seeing the benefits of that (Mail getting updated regularly in the previews, even OS level build numbers starting to sync up) it does seem like Microsoft is writing once and deploying to multiple platforms.    We're finally to a place that when Music gets attention on the desktop, Music on the Windows Mobile gets attention within a day or two. So if that applies to the broader market that will be huge.   With Windows 10 if they can just, hope against hope, get people to upgrade then there will be a large incentive to develop apps for Win10 desktop and by extension Win10 Mobile.
  • There's nothing to kill.  The platform is as good as dead. They need to decide if they want to try again.  The current effort is simply a failure.
  • Can always rely on I'm TC to talk absolute twaddle    
  • When I read posts from you, I read your name as I'm XTC. Well, most of your comments are. LOL.
  • Yes, but it sounds like it could be on table.
  • theyre probably gonna sell off xbox or windows phone
  • Hope WP does and not Xbox.
  • Seems it is a decent success overseas - hopefully they will look at that as part of their new "everyone" mission and keep it alive. 
  • Whats the use of giving devics everywhere but the Apps/Services that empower them to be US/UK only...
  • Windows Phone is a massive success over here in France. I was proud of being a very early adopter with my good old LG Optimus 7, back in 2011, and I never saw ANYONE with a windows phone 7 device, but since wp8.1, I'm seeing some everywhere. Just in my class, out of 32, there are 4 windows phones. (Lumia 830, 1020, 930, 1320), and I have seen quite a lot of people with Lumias in the road, the underground, etc... It's only in the US that Windows Phone is a failure. I'm really confident that WM10 will be a success in Europe. Dunno about the states.
  • "It's only in the US that Windows Phone is a failure." You're forgetting China, which I believe is the biggest smartphone market in the world where Windows Phone is irrelevant. China is probably the biggest dent in WP's marketshare.
  • If WP dies, I'll go back to string and cans.
  • I honestly couldn't tell you which OS id switch to is WP was to shut down. Hate to say it but I'm probably leaning 51% toward iOS and I hate Apple.
  • Same here, though I would also consider BB as an option too.
  • If I had to switch now, probably I would choose Ubuntu Phone!
    I like challenges
  • I just couldn't do Apple. Everytime I have to do something on a friends iPhone or iPad, I hate it. Just my personal opinion, but something about the OS just does not jive with me. So I would switch to Android, but I hope I never have to...
  • I'd honestly just switch to legacy phones. I'll never touch iOS or Android, even if they're the only two choices.
  • wouldn't that suck? TWO choices for what kind of smartphone you want and one of the choices only offers one same damn model and iteration for the past 8 years. If that's any indication of a future with only 2 smart phone operating systems, what a stagnant future it will be. its 2015, when we enter 2020 we should have at least 4 contending operating systems. It blows really, and its all down to app support for most upcoming mobile OS's look at Microsoft still struggling for app parity and they're a multibillion dollar company that can afford to bleed. Imagine Firefox, Sailfish, Fire OS, look how RIM couldn't withstand it anymore. And every android and iOS fan cheers at a failed attempt from one of the few at the bottom like its a long term victory.
  • My honest opinion and being around a ton of non techie smartphone owners, MOST iOS and Android users don't even know other OS exist and that is one of WP (W10 for mobile) major problems. Posted via the Windows Central App for Android
  • That's something only a hardcore fanboy would say. 
  •  I have an old Samsung black jack 2. It was slow and wound up getting an iPhone 3. I am satisfied with its functionality, but I have always wanted a windows phone that worked in sync with my WinOS. Basically, I've been waiting for a very long time for an MS Windows phone that is current to today's demands I require. So waiting has been my issue. Hoping to sell this iP5s soon! What I did do to dim my wait time was to buy a Micrsoft SP2 tablet. I am VERY happy with this MS tablet!!!!      
  • On a philosophical level I agree with you 100%. When it comes down to how I enjoy my phone, It's Android...as much as I HATE Google. Currently though, I can get around 95% of Google crap on my phone. What I *can* have is a pretty decent Windows Phone 8.1  style launcher and all my Microsoft services. It takes some work, but it is almost seamless. I also get access to ALL apps. I have become very frustrated of late. I tried Android in the past but came back to WP. I have completely lost my patience with the lack of apps. There are apps I NEED to make certain products I use fully functional. Purely from a very selfish perspective, I'd love for Microsoft to build a great Windows 10 Android Launcher to go with all the fully supported and fully functional apps and services they are now supporting on the other platforms. Have there be some extra functionality when Microsoft services are tied in with the launcher. That would be the ultimate trojan horse.
  • I agree. Often when I'm using my phone I feel like I might be actually missing out on something great everyone sees in iOS. Then, I find myself in a situation of having to use my friend's phone, or iPad. And I'm always surprised by what a mess it is. (Except when I open an app like Facebook and I'm like, "oh my god, look at all the features this app has! My Facebook app can't do any of this!" But, you know, I keep those thoughts to myself.) If I have to switch it'll be Android, and Material Design is pretty nice now. I'd hate to have to use anything that supports Google though. Ugh.
  • There is no way on gods green earth that I would ever use any device created by Google or for a product that uses a Google OS. I would however strongly resist kicking and screaming toward Apple, but I wouldn't like one second of it.
  • Honestly, I'd go Ubuntu. Anything but Google or Apple!
  • Where would you get this Ubuntu phone. Posted via the Windows Central App on my Lumia 640 XL
  • You would go iOS. I think iOS stinks, yet I'm using the 6 for reasons of transferring to T-Mo and needing to buy a phone for the ETF reimbursement. Also, don't use SIM card adapters, because that broke my L920 and I'm stuck on the 6. Anyways, iOS because Android has so many security issue reports and it was made by Google.
  • Apple's a great choice if you're someone who would have loved Germany or Russia in the 40s and 50s. 
  • Maybe so, but Android/Google is for people who think Orwells', "1984" would be a great place to live. 
  • Germany and Russia had access to the absolute best apps and games in the 40's and 50's? Wow
  • Easier for me. I'm Canadian and will support my fellow countrymen at Blackberry, Inc. if Windows Mobile/Phone will end. It wouldn't be that bad either as I have once invested in a few apps at the Amazon Appstore before switching to Windows. Otherwise, I think I will go with Apple too. Android is the ultimate last resort.
  • I know... I hate apple... but android bah! Never! I'd rather go for a BB phone... I think
  • Go back? You've actually used this method before?
  • Funny because I've thought about that thought several times and I still don't see me going to either. I switched from Android to get the Lumia 920,and I still use an iPad in addition to my Windows devices every day and I hate IOS. If fact,I posted my dislike for it as a Facebook status earlier. Guess I'd just be screwed.
  • I'd just use my Windows Phones until they fall apart. Like hell I'm using iOS or Android, and if Windows Phone dies Blackberry won't be far behind.
  • Nope wp is not dying just released new insider build for phones.  
  • Yeah, you'd think they would just silently stop development of Windows 10 Mobile until the announcement. After all, the people in charge (Terry, Joe, Gabe etc.) would certainly know by now if Windows 10 Mobile was to be cancelled. Theoretically this doesn't discount the possibility of cancelling phone production, though. However, I don't really see that happening, since it doesn't fit the strategy they've only just begun with Windows 10. Things I COULD see happening, though, are: Writing off the phone division acquired by Nokia and moving phone design and production over to the Surface team instead or simply lay-offs in the phone division.
  • Surface and Phone design are already within the same Windows and Devices department, if I remember the news correctly from earlier.
  • <p><br />
    &nbsp;</p> <p>
    koolyoyo6
    Exactly my thoughts with a small difference ... first I will try Jolla (Sailfish) and dan Blackberry.</p>
  • I think it may relate to stuff like Xbox Music, Xbox Video which haven't been particularly successful compared to the competition...
  • Then they need to find a strong partner to fill those gaps. That is core to the home. I don't think they would kill those, personally. Video more so than music. Though I love my music sub.
  • I think we'll see a rebrand of Xbox Music to Microsoft Music. So Video, along with TV & Movie will just live in the universal store as they should, with options to buy individual seasons or episodes or films.
  • Those services will probably stay as they were integrated into the W10 store, and it can't be too much work for them to maintain it.
  • "which haven't been particularly successful compared to the competition" Unfortunately WP also clearly fits that criteria.
  • I think they're making the hard decision to kill the start menu. They're finally seeing that it really is unneeded.
  • Something is written-off when its recognized value is reduced. In accounting, this is a recognition of the reduced or zero value of an asset. In income tax statements, this is a reduction of taxable income as recognition of certain expenses required to produce the income
  • I doubt they'd kill Windows Phone when everything is coming together now. We got a shitton of new partners. which mostly make budget phones but thats how android rose to dominance too. Windows 10 is going to be bomb. Even on phones. (Know that there are a lot more features coming).
  • That is what was said about Windows Phone 7, then 7.5, then 8, then 8.1 and now Windows Mobile 10. The differences between all these versions are negligible at best and Windows 10 certainly doesn't bring the evolutionary change that needed to become successful in mobile. They will release Windows Mobile 10 and then slowly move away from mobile devices and concentrate on services. It will get minimal support going forward. Posted via the Windows Central App for Android
  • You make some valid points, but I just have to say that it's Windows 10 mobile. :)
  • If you read his email, it's not about killing products, it's about better utilizing them.  Nothing to worry about here.
  • I doubt Windows Phone is in danger. Note Nadella's paragraph that leads into how he plans to execute this new this new strategy and ambitions: Our strategy is to build best-in-class platforms and productivity services for a mobile-first, cloud-first world. He then makes the following point: "These ambitions utilize a unique set of assets that span productivity services, cloud platform, our device platform and our family of devices. There is an explicit path dependence on how we achieve the "inter-connectedness" between the various elements of our strategy to gain momentum." That statement which highlights Microsoft's assets for achieving this goal of inter-connectnses, draws our attention to the assets  of family of devices that have been at the forefront of this One Windows Unified platform message and core to to the unified platform "story" for some time now. It is consistent with what we have seen thus far of the universal platform that spans device such PC, tablet, phone, IoT and Hololens. The tone of that above quote seems to maintain the integrity of the current range of that family of devices (and as the memo proceeds actually adds to it by restating past quotes regarding new categories.)  I think Windows Phone security as part of Microsofts plan to is further their ecosystem of products and services can be found in Nadella's next quote: "Finally, we will build the best instantiation of this vision through our Windows device platform and our devices, which will serve to delight our customers, increase distribution of our services, drive gross margin, enable fundamentally new product categories, and generate opportunity for the Windows ecosystem more broadly. We will pursue our gaming ambition as part of this broader vision for Windows and increase its appeal to consumers. We will bring together Xbox Live and our first-party gaming efforts across PC, console, mobile and new categories like HoloLens into one integrated play." First he opens with a broad focus on "Windows device platform and our devices." Note in this quote devices are key to the proliferation of Microsoft's services. And he notes"our" devices which makes clear that though cross-platform efforts are central to Microsoft's strategy, the utilization of it's own devices to distribute Microsoft services are also central to their strategy.  Of course Microsoft has a range of devices of which Windows Phone is only a part. But Nadella at the end of the above quote as he is talking about how MS will advance it's gaming ambition as part of "this" (he keeps the gaming dialouge within the previously established context of MS devices), actually lists the types of MS devices that that gaming strategy will be advanced across: ...PC, console, mobile and new categories like HoloLens... Note mobile is mentioned as part of Microsoft future plans. As we know Microsoft's Windows Mobile SKU comprises both phone and small tablets less than 8 inches. Microsoft doesn't (yet) make it's own small tablet that is less than 8 inches but it does make it own mobile phones (Lumia). So this statement clearly indicates that Microsoft's Windows Phone devices are still part of part of Microsoft's vision.  This along with a clear strategy regarding Microsoft's Smarphone strategy (as we've been discussing through a series here at WC), is something that MS has greatly invested in, actually show that MS is (at least for now) all in with Windows Phone! :-)   
  • Exactly. Windows Phone is just starting to pick up. Didn't you guys read the news about WP in Russia? They can't possibly kill it off now.
  • It doesn't make them any money, so they most certainly can and, when W10M is a failure (and it will be) they very likely will.
  • It barely loses money though, 1 year in with no flagships.
  • Windows Phone is always just starting to pick up. 
  • And then Microsoft does something to kill momentum. I'd love to get a better insight into the internal battles at MS to see who's really for and who's against WP. Just so I know who to blame for not backing the platform I spent good money buying into.
  • Interesting how they plan to drive gross margin in devices. Easier said than done. But as they say: 'After all is said and done more is said than done'
  • @Jason Ward:
    If the topic wasn't too serious for me, I would find it funny how you painfully try to turn phrases and squeeze words just to find any positive hint in his statement.
    I for one find it very remarkable how Nadella avoids the word "phone" consistently.
    Phasing the term "phone" out in their communication and the lay-offs of Elop and Harlow are clear indications for me that Microsoft's leadership team is preparing their business for a future without phone devices.
    You said they won't drop phones, because they invested greatly. But that just underlines my point, that the "tough choices" line refers to dropping the phone division.
    And by the way: Nadella was never "all in" on the phone division.
    Let's look at this again in two years time, although I won't be happy about the development of the situation, when I will say: "I told you so.".
  • @WindowsPhoenix These discussions are always great. Different perspectives help us to see things from other angles so thanks for your input. One of the things I've realized in analyzing these type of corporate memos is that whether from Nadella, Elop, Ballmer etc is that they are intentionally broad in scope and lack a certain level of specifics that later communications, sometimes after things become more obvious, begin to lay out. So wbat I do is not necessarily "turn phrases or squeeze words" :-) as you say. I look at what's not said in the context of things that HAVE been said, maybe in other settings, things that have been done that position the company strategically at this point, plans that are in motion, and roadmaps that have been revealed. As I shared in one of my pieces, corporate changes of this magnitude(and product releases) in the tech industry happen at a much slower pace than what it appears to what is perceived. By the time the information, such as that revealed in this memo became public, Microsofts plan and strategy has already been in action. This is just the public announcement of a course of action that has already been initiated some time ago. With that in mind, as we look at the strategy of the One Microsoft reorg that centralized engineering talent around a single vision, a unified platform for which phone is a key part, universal apps, the creating of the Mobile division that includes phone, the reality that at least two new high end Lumias will be released this year, the fact that 90% of all Windows Phone are Lumias, the investment in Continuum, the tools for porting iOS and Android apps to the Universal Windows platform, the focus on the phone strategy as recently as Build, the consistent releases of new Windows 10 preview builds etc, all show a commitment Microsoft has to its mobile platform. Again Microsofts Lumia makes up 90% of the Windows phone market, and again this announcement is a course of action that began long before it was read about here at WC or elsewhere. This plan has been concurrent with Microsoft mobile strategy that we have been watching unfold over time. Nadella's obvious not using "phone" in his wording is interesting but as the CEO making broad statements to all employees and divisions beneath him his wording of "mobile" which includes phone is an appropriate term especially considering that this is an internal email to his staff. Now I don't have a crystal ball, and you may indeed be right and may end up saying "I told you so." If so with a smile, ill say I guess you were right:-) I however think that this memo does not stand alone and within the context of the bigger picture of things we know, see and MS position in the industry with Windows 10 and investments that have not yet had an opportunity to fail OR succeed(porting rival apps, universal Win10 apps, etc) I think if there's going to be hand writing on the wall, it hasn't gotten there yet. I believe all evidence shows tbier moving forward with Windows Phone devices and are committed to making the market via the Nokia purchase, for windows phone as they've commutes to. Lets watch and see.
  • I don't think it will mean anything to Windows Phone as a SOFTWARE SERVICE. But I think we both know that you'll probably kiss your Microsoft Mobile Lumias goodbye sooner than later. As Microsoft moves back to where it belongs - amongs software - they'll push for their partners to do the hardware, including Windows Phone. They'll probably offer the mobile version as something OEMs can start bundling with their PCs. For example, Asus can create new machines that bring with them a Windows phone. The consumer then buys the PC and gets a phone with it that is able to carry part of the PC experience with it if needed be (Continuum). It's particularly appealing for the enterprise.
  • That's my fear, that their purchase of Nokia devices is not going to be towards converting Microsoft in a company like Apple which builds hardware and software, and more as some analysts say that Microsoft is becoming more a software company as it was in the Steve Ballmer's era. I'm really sad to hear Apple is the only American company that builds flagship phones, in Korea both LG and Samsung build top end devices, in the PC industry both HP and Dell sell high end computers in the US. So why can't Microsoft be more like Apple and less than Google, I don't know, I'm not sure if obscure forces are telling Nadella in his subconcious mind that the purchase of Nokia hardware division doesn't mean something spectacular. But I may be wrong, only time will tell.
  • Already they have failed, Microsoft haven't even paid attention in markets where can get profits,ie to Latinoamérica has Microsoft very abandoned, also is June and already my phone isn't with the latest update today receive an email saying get ready to 10 and that should have Lumia denim for Windows mobile 10 but it's a bad joke this e mail, since many devices aren't even updated on the latest upgrade in Chile, also how they expect sell more devices if they have not an authorized dealer here and the companies, doesn't even have on sale the Lumia 830/640 and better don't talk about flagships there is just two 1520/930 already they failed in the mobile part
  • @DJCBS:
    Sadly, that is definitely a possibility right now.
    Although that would be awful. Because Microsoft might be known primarily for software, but they seem to have great expertise in the hardware field as well. Whenever they develop hardware, they deliver high quality products (PC peripherals, Xbox, Surface).
  • Pretty sure this is the only 8 billion dollar write off he could be alluding to
  • Man...that would be devastating!!!
  • I think he was just generally speaking ...if things aren't going well, you always have to make 'tough' choices. That can be said about anything. 
  • They warned in last quarter's financial statement that there may be a massive write-off coming. Given that I think this is more than just "generally speaking."   http://www.windowscentral.com/microsoft-warns-possible-and-massive-futur...
  • I fear its kinda obvious that the "bad news" is windows phone related. It's the only thing that they havent really been clear about. I think it's Android related, mostly in terms of apps and stuff like that. I mean, why else would they make WP/W10M look and feel soo much like Android. Has to be something about that. Just dunno what.
  • They're working too hard on the mobile OS to nix it, I would be more concerned they're pulling the plug on flagship phones.
  • Working Too Hard... or Hardly Working
  • That would be silly in a Mobile first, Cloud first world.
  • Another series of lay offs
  • They should start with the CEO. No one is going to read this as it is too long and he starts with the use of the infamous Steve Jobs word "magical." Dump this guy now.
  • Those aren't very concrete arguments for removing the head of a company as important as Microsoft.
    ----
    The letter wouldn't just read, "Hey guys, WAZAAAAAAAA". Also, you're not the target demographic for this letter. It's for his employees.
  • And "connective tissue" regarding mission and alignment....
  • I'd start with the Skype team, and get some people with a clear plan who know what they're doing, and how to execute it in there instead.
  • I read it. I'm guessing my Xbox music service is on the block, but this guy needs to be given a chance. It's a colossal task to turn around a company as big and as embedded in their old ways as Microsoft. I'm sure some of these decisions will piss me off as I use a lot of their products and services and am probably more emotionally attached than I should be. I figure if I can give this guy a chance, anyone can.
  • Look a squirrel!
  • Layman question...what really does a write off imply...? Worst case scenario, lets assume that he's talking about the phone division...what happens to it after a write off? Is it just a tax reduction move by accepting that an acquired division isn't actually making money...or is it something far more than that?
  • Kramer : It's just a write off for them . Jerry : How is it a write off ? Kramer : They just write it off . Jerry : Write it off what ? Kramer : Jerry all these big companies they write off everything Jerry : You don't even know what a write off is . Kramer : Do you ? Jerry : No . I don't . Kramer : But they do and they are the ones writing it off . Jerry : I wish I just had the last twenty seconds of my life back .
  • Thank you
  • Is that actually from a Seinfeld episode?
  • yes it is
  • Hahahahah brilliant!
  • Awesome - Which episode is this for bonus points.
  • Season 8 – Episode 5 - The Package
  • Hats off to you bro :D
  • Lol perfect. I hadn't seen that episode in a while
  • ROFL
  • Wow, I can so hear them saying it, hilarious!
  • Lol Posted via the Windows Central App for Android
  • it is smth like balancing your accountability taking money from where you have it remaining and covering places which didn't make the ammount which were previously expected. Or cutting costs to acchieve that balance. Lay-off would be a perfect example to the second proposition. That's what I believe it is. No expert here.
  • I read that as layoffs coming as well...
  • Happy to help. This explains it: http://lmgtfy.com/?q=what+is+a+write-off%3F  
  • Fixed it: http://letmebingthatforyou.com/?q=what20a%20write-off
  • They need to update that site with the "new" Bing logo.
  • And I'm afraid there are also laws covering the subject. An enterprise which doesn't do this transparently, should maybe called not a trusty one before the market players.
  • It's where the company's accountants reduce the value on paper of an asset- most likely the Nokia purchase. And yeah it's for tax purposes to show that some of Microsoft's income ended up being an expense to keep that division or asset afloat. They had to do this with the Surface division too back in 2012. It doesn't mean they'll shut it down, but if the WP division doesn't improve after W10, they may have to in order to cut their losses. Tldr: They lost money on the Nokia purchase and they're just writing that on their accounting reports. Doesn't mean they're going to kill it.
  • Acquisitions are usually done on much higher value than book value of the assets bought. So from the very beginning there will be goodwill in the balance sheet. I suppose there is some leeway on the schedule of write offs. Now they will just make it in big lump or something.
  • The write off will not be for tax purposes, not in the US at least. It is for GAAP accounting that the goodwill is written down as an impairment. For tax purposes the goodwill cannot be written off unless the entire acquired business is sold or abandoned. Instead, the goodwill is amortized over 15 years.
  • When the value of asset loses value ...you have to write it off (or down). Things like money are easily measurable. But things like the value of a name brand (like Nokia) is somewhat subjective, but when a group of accounting experts determine that the brand name or 'goodwill' has lost value, they legally have to write off how much it is worth. So say Nokia was worth 7bilion when they bought it, they may periodically look at the value of it and if they think it's now worth 5billion, they need to write down 2billion. The writedown would be considered an expense on their statements. 
  • Nokia nor Nokia brand was never bought by MS. MS do have short term license to use Nokia brand in smartphones and longer term in feature phones.
  • I wonder who leaks these internal communications all the time. Surely they'd get fired if caught. I wonder if the get kickbacks from journalists.
  • It's Nadella... ;)
  • Don't tell anyone, it was me.
  • When you send an email to 100,000 employees, some of them will send it to their friends in the media.  It's no different to the Nokia burning platform email.  Elop knew it would be shared outside the company and thus force an end to Symbian.
  • Trust me, they know it will leak...
  • This could be detrimental to Windows Phone.
  • Does anyone have a dictionary?
  • look for one in the store. many decent apps. :)
  • Detrimental.. Going against or something
  • Mobile is a very important part of Windows and the universal app platform.  If they were to kill off mobile, they would kill Windows in general.  Nothing to worry about here.
  • "Make some tough choices"?
    So, bye, bye phones with Windows...
    Poor Joe B.
  • Joe MUST go!!!
  • he should have been gone in the last round of lay offs
  • Wtf are you even talking about. Joe is the only one in the company that seems to give a shit about the platform. I like Joe a lot.
  • Joe has had several years now to do something with Windows Phone and he hasn't. I'm not sure what you think is so great about him, but he seems either incompetent or complacent to me. Elop cared a lot more about Windows Phone than Belfiore ever did.
  • I cannot tell if Elop cared more about WP than Belfiore, but I can see that Windows Mobile since start of 2015 has had serveral build releases every two or three weeks, which is something I didn't saw in iOS or Android. Not sure if Windows Phone had this fast cycle on Elop's era, unfortunately I cannot tell since I joined WP and Insider program just in 2015.
  • I think it is pretty clear what I am talking about.  Of course he cares about the platform BUT that does not mean he is the right person to lead it.  Why is W10 so different that previous versions of WP? why are they basically putting the computer OS on the phone? To me, it is because Joe tried to bring the Zune design over the phone and it completely failed to catch on.  Yes, we enthusiasts love it but it is clear that a majority of smartphones users did not.  Which is why MS is changing to a design that is very different than W7-8.1.  To a more android-ized look and feel.  Hey, if you cant beat them... 
  • They are a large, very large company, this does not fall solely on his shoulders. My point is nobody gives a shit but him.
  • Lol why?
  • Are you kidding?! Without Joe B. Microsoft's coolness factor drops from just slightly in the positive to minus 174 in the blink of an eye.
  • BLame the bald guy, at least steve tried.
  • Likely but terrible as they never really got the support other divisions like XBox and Office received.
  • I hate how everyone just reads the title, and not the actual source.  Windows phones are safe... they play an important part for the universal app platform.
  • Exactly! Why are you guys worrying so much? WP is safe.
  • The smartest thing Satya Nadella could do would be to fire himself. He's anti-hardware.
  • He's the best thing to happen to Microsoft since Bill Gates.
  • Not everyone likes a fact sidedish with their opinion, but I prefer the two to go together. So would you care to elaborate your statement?
  • really? you must be an investor!
     
  • And why is that?
  • Go home, you're drunk.
  • Yes. Lets hope that tough choice refers to that.
  • I don't think Satya Nadella is anti-hardware, he is definately launching new hardware since he took as CEO: Surface Pro 3, Surface Pro 3 docking station, Surface 3, Microsoft Lumia 530,  435, 640, 640XL, Wireless Display Adapter, Xbox One Controller PC adapter, Surface Hub, new Xbox Elite Controller and the cherry of the Pie: Hololens. You're probably right about that he should do more positive emphasis on the great hardware Microsoft builds. For example, the Surface Pro 3 is comparable with high end MacBook Air of 2015 with Thunderbolt 2, however Microsoft is not a hardware company, so tech blogers most of the time don't talk about Microsoft's hardware, and IMO this has to change.
  • @Gabriel Hernandez5:
    Yeah, it was Nadella himself who assembled all the devices in his garage after hours and delivered them to the market.
    Come on, he cannot thrash EVERY device in Microsoft's pipeline. It's bad enough he canned the Lumia 1020 successor and the highly anticipated Surface Mini.
  • Is that photo of satya nadella really relevant here?
  • He's the CEO of Microsoft, so Yeah.
  • Really? Did the email have that photo?
  • Is it a crime to have a photo go along with an article? It's an article about the CEO, and its a picture of the CEO. So what's the problem?
  • Yes, it's his Outlook signature.
  • Moron alert
  • Yes.
  • The biggest improvement to windows phone would be to get rid of Joe Belfiore.  Under his direction, WP has been too slow to improve.  Zune failed under his leadership and now he's leading phones to fail
  • Joe Belfiore was never in-charge of WIndows Phone or Zune, in terms of hardware or marketing. His team focuses on the service side, primarily in regards to the look & feel (design). Pulling from his LinkedIn profile: "I'm responsible for product + engineering for the user experience of Windows across those devices." Developmet and decisions of actual functionality, marketting, etc. are handled by other teams and execs. Yea, he's high-up the pyramid, but he's not the one running the show. Plus, he's basically become the face of Windows Phone, due to the fact that he provides most of the major demos.
  • Nice article, John!!
  • Why people think that tough decision is gonna be windows phone? Maybe that tough decision is nadella gonna quit microsoft for pete sake :))
  • People just read the title and jump to conclusions.  If people actually took the time to read the actual article, they would know that Windows phones are safe, and if anything going to get even more worldwide exposure thanks to the new mindset.
  • Because WP is arguable the worst-performing segment of MS right now. And Satya Nadella leaving Microsoft would be the worst thing that could happen to them right now
  • please go away nadella.
  • Considering most of the world's computing will be done on mobile for the forseeable future, and how WP continues to make modest growth in non-US nations, it would be foolish to give up on the phone division. Foolish.
  • Rush!
  • You forget, Microsoft has moved their focus to android and ios so EVERYTHING they can think of to accomplish with WP they are actually already doing now on those platforms. So if they drop WP they still have Office on mobile platforms, Skype, Onenote, Sway, Outlook and even their crown jewel, Cortana. They have made sure that they really have no need for a smartphone platform of their own any more so they would actually lose nothing from canning WP.
  • Mobile and cloud first... Posted via the Windows Central App for Android
  • With what W10 is bringing to the table for the one-ecosystem vision, including the potential for Continuum, and universal apps, it wouldn't be their wisest choice to can WP.
  • They focused more on the Android and iOS for the past while, because the Windows 10 framework was being finalized.  If you read previous articles on WC and other fan sites, they said as of July they are going to focus on Win 10 mobile now that the PC version is being finalized.  All their apps are most likely already in progress/testing behind the scenes for Windows, it just 'appeared' that iOS/Android got more attention because their frameworks won't be changing anytime soon and it's a great way to attract more people to Microsoft.  And it's working.
  • Except, ya know, all the time, money, and effort put into developing WP10, the money spent on Nokia, the money spent on the flagships they're developing, the loss of their promise that the best mobile experience will be on WP, and more...nothing to lose...right
  • AR is the real future, and hololens leads that for now!
  • Armalite Rifle is great, but it's a pretty old design. I can't really see any argument for it being the future. I don't see how Hololens is relevant to Armalite Rifles.
  • Continuum will be huge.
  • "electing not to release publicly" - meh, it's so sad that there are so many stupid and dishonourable people everywere.
  • Who is dishonorable in this situation to you? The person that leaked it or MS? If you say MS, are you implying that they or any other enterprise cannot have internal only communications?
  • He's saying an employee of theirs is dishonourable for leaking it.
  • The person who leaked something meant for internal use only is the dishonorable one in this situation.
  • This is Windows last chance in the mobile field. They either succeed in 2016 or they write the whole thing off!!
  • Surface 3 and Surface 3 Pro are also mobile devices Microsoft builds, and I've seen many users that say how Microsoft's tablets are better than Apple's and Samsung's. Now the question is why they haven't launched something spectacular since the Lumia 1020's 40Megapixel Pureview camera. And IMO that's the reason why Stephen Elop retired from Microsoft last week.
  • Hey I can't build the 1030 so I am leaving. - Elop
  • I have a hard time thinking that WP will go away anytime this year.  They understand that mobile is a crucial piece of the ecosystem that will drive the overall experience.  With Apple and Google fighting hard to cut people from their dependence on MS services, I have a hard time seeing them rely on non-Windows mobile to complete this user experience.  I could be wrong, but with the growth of the mobile and tablet landscape and the decline of traditional PC dependency, no mobile means no Microsoft.  Only time will tell.  But it they don't push a strong mobile phone suite this year during the holiday and back to school seasons they will have left all of their eggs in one basket.  I just don't see that happening.  Fingers crossed. I need a new Lumia (with John Legere's blesing unfortunately).
  • They might just focus on Enterprise side of things... And if consumers buy it then good... But they might not actively market it to them... For consumers that use our apps/services... we have iOS/Android
  • It's a fairly generic emai imo.  Lots of changing times require the company to change.  For somone as huge as Microsoft, any new venture will be a "risk" at this point.  Forlunately they seem to be willing to take riskes as with Windows Phone, and Windows RT... and other things.  Hopefully these hard decisions won't come with any more layoffs.  Probably trying to set a tone after the recent shakeup in the past few months.  I look forward to seeing what happens next under Satya's tenure. 
  • RT is dead
  • No more Lumias possibly Surface. Hardware in general. Assumptions of course Posted via the Windows Central App for Android
  • Wrong ones, at that
  • Right because everyone knows... Nadella has always been against hardware for MS, its lost revenue. No secret. He's always been mobile and cloud first, that doesn't mean they have to keep producing devices. Nokia contract is up in 2016. While they may still heavily focus on mobile and win 10 mobile, that doesn't necessarily mean it includes the hardware division. But what do I know. Posted via the Windows Central App for Android
  • :3
  • Great comment. Posted via the Windows Central App for Android
  • Thanks. There's more where that came from.
  • Yes please fill me in with your insight. Cause you obviously know. I'll want. Posted via the Windows Central App for Android
  • Mellow Out, man. I don't think you want to know everything I know. Your head would explode.
  • Sooooo no insight... Damn I thought I was gonna have my head explode. Posted via the Windows Central App for Android
  • Take that. :P
  • has anyone thought of it this way....maybe one of the tough choices for MS is to go on with Lumias despite the losses they are making! :P But hey, its a possible interpretation!
  • I guess it is when your thinking the glass is half full. Actually, I like it better that way.
  • Surface is a profitable business for them. What sense would that make exactly? As far as phones, they are also doing quite well in comparison to the bigger picture in regards to finances.
  • Exactly... Slowly but steadily things are starting to workout for Microsoft in the mobile department.
  • Can you provide the profits they are actually making? Yes sales have increased both for Lumia and Surface, but what are their net profits? Any one can increase sales for phones that cost $50 $60 bucks. Doesn't mean they are making a steady profit. So to think that the hardware division could not be an option is careless IMO. Especially if so much more focus has been put on the software front across all platforms. The Surface will have a better survival rate than the Lumias. One would hope. Posted via the Windows Central App for Android
  • Surface & WP actually makes loss currently... especially now that there is no licensing revenue... Also.... those $50/$60 phone are only availbale in US.... in UK/EU they are much more dearer as if they don't want to sell more in these markets... We never see the kind of sales you see in US...
  • has anyone thought of it this way....maybe one of the tough choices for MS is to go on with Lumias despite the losses they are making! :P But hey, its a possible interpretation!
  • I'd wager they'll start selling the manufacturing they bought from Nokia, as well as general reductions in the phone hw teams. Probably lots of other changes as well.
  • surface, you must be joking!!!
     
  • You know what makes the devices so great? It shows off the greatness of the software... I'm sorry I'm just convinced the focus will continue strongly on the 1st party device side. Posted via the Windows Central App for Android
  • If there is going to be a write-down of the phone division, you really need to explain in your article what that actually means so we can have less "RIP WP" comments here.
  • They could be cut down on the bloat Nokia had with factories. They have already shuttered some. They may even outsource the manufactoring and focus only on design. The issues with closing some of the Chinese factories where the workers would take hostages is probably just going to confirm to do this even more.
  • There is basically one big factory left in Vietnam. Relatively new one and making also feature phones which really don't fit in to MS strategy. I suppose all upper end manufacturing is already outsourced after China factories were closed.
  • People just like to over-react, and don't read the actual source.  Phone is not going anywhere, it plays too big of a role with Windows now.
  • I read this all the time about how phones are too important to Microsoft to drop it. But look at it this way: Microsoft has had a very minor presence in the smartphone market since WP7 was released, more than 4 years ago, and yet they're doing fine. How can we say that it is very important to them?
  • It's too important for Windows as Microsoft is envisioning it right now. Not that much for Microsoft overall, though, which means that if necessary, they could adapt their strategy in such a way that the loss of Windows Mobile wouldn't hurt them that much, at least in the short term.
  • "It's too important for Windows as Microsoft is envisioning it right now." I believe this is more a fan viewpoint than a Microsoft viewpoint. And I believe Microsoft has already adapted so the loss of the mobile division wouldn't hurt them. Their services are now utilized on iOS and Android.
  • Exactly, a write-off does not mean killing a product. They have had many write-off while keeping the product.
  • Yes, like Surface in 2013 and now Surface is running well. Still, I wouldn't be too surprised if they wrote off the entire phone division they acquired from Nokia and instead moved phone design and production over to the Surface division or something of the like.
  • I don't think the "Tough choices" is kiling off Windows 10 Mobile. Not after spending and showing off all the work they did with it and VS stuff to import stuff and app developers converting to truely Universal Apps. It's probably firing and restructing like putting Windows and Windows Mobile all under the same umbrella of leadership.
  • Exactly !
  • Tell that to everyone here.
  • It's a good thing he mentioned XBOX specifically because the gaming division doesn't fit with their new mission statement. Until I got to that point in the email I thought he was going to sell off / spin out the XBOX and PC gaming efforts.
  • Pretty sure they've said repeatedly that Xbox is here to stay
  • Bye bye, Windows 10 mobile, fare thee well
  • No, they ain't killing Windows 10 mobile. That's be just plain dumb
  • But may be after 1 year if W10M is still standing where it is now.. Then there is a chance that MS may get rid of W10M..
  • Sure, but we are not there yet.
  • Yup.. Time will tell..
  • Perhaps they just announce that ARM phones will be killed and will be replaced with Intel ones which will arrive sometime 2018.
  • You are such a -ve person :P be +ve bro
  • Acquiring Nokia was a mistake..Elope was trying to support WP.. And it did succeed.. But still not enough ...
  • Nokia was never acquired.
  • It's a hint that Windows 10 mobile will be killed soon
  • And if you are right , why are they still working on W10M tech preview.. Have some common sense
  • Working and working. Already months late compared to non-mobile version.
  • That we have already discussed several times before.. Enough dude..
  • Lol
  • All the work gone into working on W10 Mobile is irrelevant.  Google 'sunk cost fallacy'.
  • They would have stopped releasing builds by now, though, which they haven't.
  • Windows Phone won't die, Yes Lumia devices
  • "tough decisions" .. May be he is talking about job cuts to reduce expenses..
  • I assume so
  • No other reference to windows phones than tough choices.. Seems that L1520 will be my last windows phone. Lets see what Nokia designs next year when they enter the market via partnerships with device manufacturers. Well most obvious choice for MS would be to kill feature phones but smarts may go also.
  • he's not afraid to make those tough decisions.  layoffs, "retirements", shifting department leaders around.  Are all those surface minis still siting in a storage building somewhere? He killed those the night before launching.  WP is not going any where.  Just its senior VP in charge
  • They're gonna kill Wordpad!
  • As long as Notepad lives go ahead!
  • Notepad is awesome. It's one of my most used applications. I use it daily. My only gripe is that it doesn't have bi-directional searching or search-and-replace functions.
  • Dude, Notepad only has like, 3 menus. And you couldn't find the "Replace" item?... I'll assume you're joking. 
  • Maybe they'll kill off Yammer. If you haven't heard of that I wouldn't be surprised. From what I understand it's all but dead anyway.
  • Those groups that are all over O365 and conversations is all yammer, fool!!!
  • That was one of their worst acquisitions.
  • Yammer is for businesses of course most people don't hear about it. Just like you don't hear about salesforce. Yet it's worth billions.
  • So stupid to release such a memo at this time. What the heck he is thinking, right before lunch of their biggest products in ages. Now people assume WP is a sinking ship and wont switch even if they find win 10 lucrative enough.
  • It's an internal memo to people for ramping up for the biggest year in the company's history.  It's not stupid at all.  It's pure empowering and telling their employees they need to change their old mindset with a faster and global precense.
  • This wasn't released. It was for internal distribution only. Some naughty employee leaked it.
  • Leaner and meaner.
  • Oh yeah
  • Sorry guys that is very long , I wont read it , but my question is : Is something going to happen with windows phone/ mobile? If there is something hinting to this I don't think they will do it , windows phone NOW Is growing so much , second in Russia , second in Egypt , growing everywhere , and if they really wanted to kill windows phone they wouldn't make a version of windows 10 for phones , the phone devision are really working hard and its completely overhauled from WP 8.1 , so if they really wanted to kill it they wont do what they are doing now
  • Firing Elop and Harlow may hint something.
  • Second in Pakistan too. If that matters....
  • Increasing market share in India as well .. If that too matters ;)
  • All matters :D
  • Hmm. "make some tough choices in areas where things are not working"
  • Whenever someone says something like "we can do great things when we come together with a shared vision..." they usually mean "go along with me or get the fuck out.". If his 'vision' doesn't include Surface tablets or WP, he'll kill them and be happy about it. If he thinks he can achieve the primary objective of getting MS software into every facet of your life by putting it on any Android or Apple device, he will and be happy about it. I do not view this as a good thing.
  • Soooooo.....could they write off the current Xbox Music apps?...
  • How is Xbox doing these days? Are they still taking a loss on each Xbox sold?
  • Last one closes the lights ok?
  • FIRE the entire team (based in France from what I hear) that developed Xbox Music. I've never hoped for someone to lose their job before. But when it comes to their work, or lack thereof... I'm eager for it. We need to get some of tha talent that worked on zune back.
    I'm not mad that they rebranded it. It was a stupid name to change it to, but hey Microsoft always makes weird branding decisions. The fact that they released a crappy WP8.1 app and then a year later, it's only marginally better... is really sad. Either they're stretched too thin or they're incompetent
    /rant
  • "We will need to innovate in new areas, execute against our plans, make some tough choices in areas where things are not working and solve hard problems in ways that drive customer value." "It's important to note that our worldview for mobile-first is not just about the mobility of devices; it's centered on the mobility of experiences that, in turn, are orchestrated by the cloud." Not surprising. But please, don't say it's phone division you're shooting at. If it's true, then that "execute" might refer to Windows 10 Mobile. And they sure are going to disorganize phone division's priority. Nothing more sysnonymous can I derive from those words. Other products seem to be doing well imho.
  • @Gautam Check out my comment above. It's easy to find. Its a long one. Microsoft is not killing Windows Phone. no worries. :-)
  • That was one nice read! I've read some of your previous editorials too. You rock man! I sure hope what you concluded by analysing their quotes is exactly what MS is going to do. Thanks for the positive feelings :)
  • He's using the word "execute" in a different way... it means "to action" or "to do" in this context. But you've interpreted the message correctly - he's hinting that MS is going to be about a cloud-driven experience on all available platforms. Windows 10 Mobile will be killed off pretty soon.
  • IIRC, he was not in favor of buying Nokia's devices. These CEOs think they know if all and he is probably no different - especially now that some have praised his actions, he probably has built a sizable ego already. :D So would not close out any possibility, e.g. trying to spin of the phone hardware division again. Not likely,  but not completely implausible either. ;)
  • I liked how Ballmer said he was retiring "early" because he was too old to see the company through their new mission: "One Microsoft: A Devices and Services Company." He said he wanted a new CEO to come in to continue where he left off in the new transition. Nadella took only about three minutes into his reign to completely destroy that vision. So, either Ballmer was lying and was forced to leave, or Nadella lied and said he believed in the future of Microsoft as it was just so he could get the job.  
  • The awesome thing with Nadella, is he's making the changes that Ballmer was afraid to make.  I don't blame him though, it's a gigantic business and it's hard to keep tabs on everything on a global scale.  I'm glad even he acknowledges that this is the time to thrive because Microsoft's current innovation hype in the media, they can't let the company out of the spotlight.
  • It's been reported that Ballmer and Gates had disagreement about acquisition of Nokia's devices and services division. And Gates only agreed after Ballmer promised to retire. A bit strange compromise to let people hating devices to take helms.
  • Making tough decisions in areas that are not working = RIP Windows phone and Xbox (and HoloLens after a few years).
  • Also Windows 10 PC..../s
  • Everyone is freaking out about this, but am I the only one that see this bottom paragraph and thinks it's vague corporate speak that doesn't say anything? Just because he says they need to make hard choices doesn't mean he's killing Windows Phone.
  • He's not killing WP because "continuum" is too important of a strategy to bringing Windows everywhere.  The fact that you can run windows from your phone with a monitor mouse and keyboard in low income countries is too important.  If anything happens to WP it would be a change in leadership
  • That's why I thought first kill WP I mean it would be a very hard thing and honestly i don't know what would I choose. Definitely no iPhone. I just don't know
  • Relax man.. You don't have to worry about it... At least for now..
  • Why wait longer? The person should just switch and not worry. I bought the Lumia 640 for my collection and being Microsoft branded. Rockin a S5 right now. The S6 *thumbs down*.
  • I hope it isn't to do with either Xbox or Windows Phone. I'm too invested in these ecosystems now.
  • Perhaps he just wrote it before "talking with" Elop this week.
  • I hope they dont alienate curent phone users or Xbox music users. I would hate to switch to apple to listen to sounds and call people. Hard choice? Best not let go of Xbox... One of the only popular brands.
  • I hope Xbox doesn't go is doing better than mobile.
  • Seems like WC has to make one more article to convince WP users that the email from Nadella has nothing to do with WP :D .. Or may be Daniel have already tweeted about it with someone's whining comment as a screenshot ;)
  • @yasar Check out my comment above. Its a longer one easy to find. That my be what your looking for. :-)
  • Don t be too surprised if they dump W10 for mobile a year in, if there is no improvement in market penetration. I don't think MS will keep pouring in money if there is no profit forthcoming. It's the culture at MS now... Driven by the shareholder... Let's hope it doesn't happen!!!
  • Yep. If I worked at MS, I would read that as "If phones don't show notable overall improvement by next spring, we're canning them."
  • I agree. That's how it goes for a publicly traded company. The shareholders won't continue to allow money to be poured into a losing product. Posted via the Windows Central App for Android
  • What a load of gobbledigook.
  • Haha
  • Lol so you guys are saying they're going to can WP after dedicating months to building W10 for it? Man talk about a tribe of "sky is falling" members. I guess if a company isnt constantly getting positive reviews to validate your purchases you're going to whine about it on the internet and make up stuff. Lol, look I lok forward to the new hardware coming with WP. Give me a bigger L925 on Verizon and I'm all for eduring the ride and ditching my iPhone 6 until it gets great like I did when I had Android and iOS. I see that coming this year and I think a lot of new apps are coming with WP10 and from that point just convincing Google to put some form of Youtube on WP will do plenty for consumer outlook. I'm sure Youtube Gaming will be coming to Windows Phone because they want to get as many people as possible so we'll se what happens after that.
  • I'll buy a Nokia Android phone
  • Let's hope it comes without Google spywares.
  • Que the slightly annoyed response from MS PR that they are fully committed to Windows 10 mobile, in 5, 4, 3, 2...
  • Lets hope that those hard choices include brimming their Marketing Division and getting someone in the WFI can sell Windows 10 Mobile for a change
  • A lot of people panicked over nothing. Canning Windows phone is not a hard choice. A hard choice is sticking with it through all the bad results and seeing what it can become in the long run.
  • With the state that Windows 10 mobile is still in ( its far from being done) I can see them pulling the plug on it. I switched from a Lumia to Galaxy and it was relatively painless. Almost all the Microsoft services and apps I use are on Android, and Google Now is very close to Cortana when you compare its functions. I just don't see how Microsoft can keep the mobile division going. There is nothing to compel consumers away from iOS or Android. Posted via the Windows Central App for Android
  • Sometimes I think Nadella talks waaay to much! Sometimes silence is a virtue..
  • Microsoft Mobile shut down in 3...2...1...
  • I was hoping you would be wrong but you called it. Doubt Nokia will have a chance in Android.
  • What is write off or write down???if this happen,will phone division get shut down??
  • It means they've poured a ton of money into a division, but it's not worked out. So they tell shareholders to consider that money lost. But yes, he's hinting that Windows Mobile will be binned.
  • -Halo 5 is coming to PlayStation 4 by the holidays. -Cortana on every device, including Blackberry. -Office for every platform, except Windows Phone. -Tighter integration between Hololens and Beats music. -And SQL Server now runs on Linux exclusively. Using some of Nadella's logic. (For those trolls who doesn't understand, this is called sarcasm).
  • WP or WM 10 don't really care about anymore but if they get rid of Xbox I'll be pissed.
  • Lol! That was great Fransisco! :P
  • Lol! That was great fransisco :P
  • Actually, one of the things not working is Cortana IMO, cool idea, but really mostly a gimmick.
  • Great Mail.... love it I hope one day i can work in Microsoft
  • WohoO!!! New build available for phones!
  • So no more Xbox, Surface or Lumia hardware. Microsoft will licence hardware designs only to focus on software and services. Good decision, as they make weak profits on hardware and it pisses off OEMs
  • Won't be surprised tbh if they will lay off more people in their hardware divisions. The main source of WP growth is cheap phones - see how WP is second in Russia despite lack of flagship. I think that they will, unfortunately (but understably) focus on 4xx, 5xx and 6xx series and might ditch the whole idea of WP flagship completely. Keep in mind also, that Nadella was not a huge fan of Nokia buyout, to say the least. Not sure about Surface tho, and definately not agree on Xbox. 
  • I doubt XBox is going anywhere. Even the Surface tablet line. I recently went to a appointment that my brother had for his daily checkup and his pedestrian had a Surface Pro 3! It's definitely successful. It's all in The Windows PHONE department! Truly Posted via the Windows Central App on my Lumia 640 XL
  • I believe that the tough decisions he was refering to have already happened in one case (employee layoffs) and the other has to do with the reconciliation of the Nokia aquisition. No company likes to admit that an aqusition like that didn't work out as they planned and they will now decide how to absorb that loss.
  • Xbox better not being going anywhere.
  • After reading all the info floating around about Continuum I'd say that Windows phone and mobile in general will be the future of microsoft. We are all going to become borgs and stay plugged into the collective all the time. Why are windows people so insecure? Must be windows nerd all have little bitty winkies. I,however, am very secure.
  • Insecure?...boy, windows phone is the 3% of the mobile phone market. Microsoft updates every app on the others phones, but no on their own phone. Can you guess now the why?
  • Tough choices = Fire the damn marketing teams promoting Windows Phones in the U.S.! This needs to happen by the time new phone hardware and Continuum is available.
  •  
  • Simply a matter of time now...fun while it lasted...
  • I agree. Posted via the Windows Central App for Android
  • So....bye Windows Phone. Ok, let's look for some pretty Android...LOL!
  • I want to know, Does anybody really find this stuff compelling enough to care about without phone? I mean xbox I guess, but you could always read giant bomb. what about desktop? office? skype on IOS? is this stuff really worth reading about..I guess I've realized I'm interested in WP not really MS itself. lets hope they get hololens figured out...
  • I think its skype.
  • Lol
  • At the end of the day, egos-be-damned, Microsoft will do whatever it takes to stay competitve and if that means a different take on mobile hardware, so be it. If you can't get the customers to come to you, you go to the customer and the customer is ALWAYS RIGHT. 
  • I understand 3% market share is a failure. At the same time, I don't think 40 million people on a platform is a failure at all. If it was, Apple would have been out of the PC business a long time ago and since they had no other products, we would have never seen the Apple of the last 10 years, they would have been out of business. It's not like they've gone balls to the wall with making high end devices. I actually think the failure is after 2 years of focusing on the low end, they continue to focus on the lower end. Would I be shocked if they cancel WP..not really. But right now, at this point, with the money and time invested into win 10 mobile and continuum, it just doesn't make sense for them to bail. We will see.
  • They abandoned windows phone to the high end user, its a shame I luv the phone, more integrated, more intuitive. It really pisses me off they didn't hold on to the high end customers, big mistake.
  • I'm using Galaxy S6, but still luv my 920, idiotic...
  • It does not sound like they are going to kill WP from what I read.... Everything being cloud based means you definitely want mobile access - WP isn't breaking their bank... I think they have a chance to grow their market share - Asia & Africa are still wide open .... MS also still has a lot of software & hardware which they hope will all play nicely together.  
  • I remain hopeful that the tough choices don't include hardware, even if it makes sense.  With the pending release of a couple of flagships and the hope that they'll land on all of the US big 4; I'm ready to try Win10 on a phone.  I realize Win8 wasn't much loved but after a month with my Spectre x360, it's not that bad.  I won't go back to Cupertino for my phone and even though I enjoy my Android, I'm tired of Lollipop bugs and manufacturer's skins.  Give me a viable flagship option Redmond, PLEASE!   PS. I could care less about the Redmond releases aimed at the next billion; that's not what a reader of this site, Android Central, and iMore cares about.  If you care enough about your gadgets to thoroughly read about them, nothing short of a flagship is in your sights.
  • Anyone that thinks that the Windows mobile division inside Microsoft can't be rolled up, due to all the work put into Windows 10 for Mobile, is probably falling victim in believing in the sunk costs fallacy.   Folks a few months ago, were still holding up the Nokia acquisition as a reason for staying in the mobile hardware game; it's been leaked that that acquisition will now be written down, and Microsoft will take the loss on its books.   
  • Nothing has been leak, this is all from public records and they said they might think about.
     
  • As a widnows phone fan, and microsoft sympathizer, I really felt good about reading this e-mail. I don't think one should over analyze the bit about 'tough choices'. I think departure of Elop would have been a tough choice and there will be other such decisions in future. Areas or people that don't perform as per expectations have to go. It is tough to let anyone or anything go, but to run a business of any sort, you have got to let things go. Personally, I am so 'inspired' by this mail that I would love to work for Microsoft one day 
  • Waiting for more details. I think they are already spending a lot on WP. They may say good bye to hardware production but WP OS is going nowhere.
  • Actual I think that they are  getting rid of nokia phone hardware and focus on high-end phone.
  • "They may say good bye to hardware production but WP OS is going nowhere." Possibly, but since Microsoft produces about 95% of the devices running WP, saying goodbye to hardware is essentially saying goodbye to WP.
  • Satya is saying goodbye to Lumia I think
  • Obviously, he is talking about WIndows Phone. Ugh! I still haven't forgiven M$FT for dumping Zune!
  • The fortune 500 company I work for just recently switched their enterprise from black berry to Windows phone... I'm more than sure they'll keep it alive Posted via the Windows Central App for Android
  • The OS will stay, after all, it's a cut down version of Windows 10, but I wouldn't be surprised if the Lumia hardware division is either shut down, sold off, or is rolled into the Surface division. If the *Xbox* so far hasn't been profitable for Microsoft, than the former Nokia devices division/ Lumia can never hope to be.   You can't make a profit selling $50 phones to emerging markets, unless you're a Chinese OEM.
  • Generally, "tough choices" = layoffs.
  • Just a thought to all the people saying they are going to kill of windows phone. Why would they have spent so much time on the universal apps to convert iOS and Android apps? He is also talking able being mobile... I dont see them killing off mobile not now that more corprate companies are moving to it and lets not forget all the 3rd world countires with budget phones. People make a big deal out of market share but when you really break it down you could say Apple is really far behind Android. 1st Android 79% of the global market share 2nd iOS 16% of the global market share - thats a 63% gap between first and second 3rd Windows Phone 3% of the global market share - thats 13% gap between second and third. Just something to think about.
  • That's a freaking long mail...I can't read that all... Fire me already!