Redmond, Wash. – Microsoft CEO Steve Ballmer says he is taking over as the company’s champion of innovation, and his focus will be on turning online services and entertainment into Microsoft’s new growth areas.
Ballmer used the remarks Thursday to open the company’s annual meeting for financial analysts, the first where founder Bill Gates was not in attendance. Gates is on vacation in Africa following his recent announcement that he is transitioning out of the company over the next 24 months to focus on his philanthropic work.
Ballmer said Gates’s transition leaves him to become the full-time champion of innovation. He said that is one of many firsts, including his first time to broadly address the investor community and to launch new products.
“All of those things mark the beginning of a new era for Microsoft,” said Ballmer. “I think about how the company will move forward, about our growth, innovation, where we are going and I think we have many things to be excited about.”
Ballmer went on to say the next era will hold many high points. “This next era of Microsoft will be more exciting, will allow us to generate more shareholder value, more innovation and have more impact to change the world positively.”
Ballmer sidestepped the multiple delays of Vista and Office and said the impending shipment of the two represent “the most exciting product releases for Microsoft maybe ever.”
He said the two products are the foundation for attracting users to the Windows platform and will fuel two new major growth areas in services and entertainment.
Ballmer said innovation will be the foundation for future success and would include multiple areas of focus.
“We are not a company that starts things and gives them up. We keep working, and working, and working, and working,” he said. “We are not afraid of initial resistance to our efforts.”
Ballmer said the company would embrace advertising, subscription-based software models and internet-based delivery of software across Microsoft’s product line.
“It is an important part of what we will do, and it will be fueled by innovation,” he said.
He also said he thinks about Microsoft as a company with multiple cores, comparing Microsoft to new multi-core processors, and said the company would focus on developing two new cores.
“One is online and one is entertainment,” he said. “If we can build the kind of capability and deliver the type of performance we have done in desktops and the server business we will all sit here in 10 years and agree that we are not only fantastic as terms of innovation delivered but the returns that came back.”
Ballmer said the company will focus on four core capabilities – desktop, server, entertainment and devices, and online. He said those four focus areas would stretch across all five of Microsoft’s business units.
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