Showing posts with label ahead. Show all posts
Showing posts with label ahead. Show all posts

Monday, 15 July 2013

Ballmer outlines the road ahead for Microsoft Office, Skype, 'Bing Now'

According to Microsoft's Steve Ballmer, the future of Microsoft involves such things as "living" documents, the Microsoft equivalent of "Google Now," a blurring of email and chat, and the ability to add a gaming layer to everyday activities.

It's an ambitious vision, and Microsoft chief executive Steve Ballmer laid it all out in a strategy document that accompanied his "One Microsoft" memo outlining an ambitious company reorganization. While most of the early attention paid to Microsoft's strategy correctly focused on what the reorganization means for the short term, it's worth focusing on what the company has in store for the longer-term future of its product groups, too.

Ballmer made much of the fact that Microsoft is reorganizing around devices and services and moving away from being a purely software-driven business. But Microsoft was founded on identifying and meeting key needs that it can address, such as productivity, collaboration, and fun. What Ballmer's document appears to do is essentially remix those concepts, combining them in much the same way painters mix primary colors together, to develop new and profitable combinations of technologies.

Ballmer addresses five key areas: the future of documents, anticipatory data, the future of social, gaming, and the "shell" of the Windows interface.

"Documents are going from being printed to being experienced," Ballmer writes. "There are many high-value needs for personal creative expression — some just for fun, others at work or at school. We will reinvent the tools and form of expressing oneself (and expressing things as a group) from paper and slides to online. We will ensure that the tools handle multimedia (photos, videos, text, charts and slides) in an integrated way and natively online."

That's exactly the conclusion we reached on Wednesday, a day before Ballmer released his reorgnization memo. By injecting data into documents via Bing and the cloud, users are encouraged both to use Microsoft Office and to let documents "live," connected to the cloud. These "living documents" can't be easily reproduced by reader technology from Google and others, making Office that much more valuable.

"Our machine learning infrastructure will understand people’s needs and what is available in the world, and will provide information and assistance," Ballmer writes. "We will be great at anticipating needs in people’s daily routines and providing insight and assistance when they need it. When it comes to life’s most important tasks and events, we will pay extra attention. The research done, the data collected and analyzed, the meetings and discussions had, and the money spent are all amplified for people during life’s big moments. We will provide the tools people need to capture their own data and organize and analyze it in conjunction with the massive amount of data available over the Web."

If this doesn't sound eerily similar to what Google already does with Google Now, then you haven't been paying attention. Google Now works by sniffing your email, calendar, and location, among other things, and reminds you of what time your flight leaves and how long it will take to get there. Frankly, Google Now is one of those "Wow!" technologies that adds real value to Android -- and Google is busy adding them to Chrome, too. Microsoft offers very little that's comparable, and it seems intent upon changing that.

Using Bing as an "intelligence engine," Microsoft could begin collating information from Mail/Outlook/Outlook.com, the calendaring applications of both, location from Windows Phone, and traffic. Google's foundation is its massive wealth of data, and its ability to understand how that data interrelates to each other and to its users. But Microsoft needs to offer at least an outwardly competitive solution. It appears that the company intends to do so.

"Social communications are time-intensive, high-value scenarios that are ripe for digital re-imagination," Ballmer writes. "Such innovation will include new ways to participate in work meetings, PTA and nonprofit activities, family and social gatherings, and more. We can reimagine email and other communication vehicles as the lines between these vehicles grow fuzzy, and the amount of people’s digital or digitally assisted interaction continues to grow. We can create new ways to interact through hardware, software and new services. Next-gen documents and expression are an important part of online social communications. We will not focus on becoming another social network for people to participate in casually, though some may use these products and services that way."

In the beginning, there was email, and Outlook. Over the years, Microsoft has added calendaring (including the ability to share calendars); SharePoint; its enterprise videoconferencing and instant messaging client, Lync; Yammer; and Skype. All of these are different approaches to the same problem: how to easily communicate, collaborate, and share content both between consumers and business colleagues.


What Ballmer appears to be saying is that we should expect these products to coalesce into one another, although what the final form will be isn't clear. Microsoft already began integrating Lync and Skype in June, has previewed Skype for Outlook.com, and announced plans to integrate Yammer and SharePoint functionality, as well as Yammer and email. A planned Lync Room System will provide a simplified videoconferencing system, Microsoft executives have said, while Skype will be part of the Xbox One game console.

For now all of these products should remain separate applications, but look for these to blend together over time. Within the enterprise, the focus appears to be on "collaboration"; within the consumer space, Ballmer implies that "connection" appears to be the emphasis. But both include elements of the other.

"The experience we will deliver across all our devices centers on the idea of better connecting people with the things they care about most," Ballmer writes. "This includes their files, documents, photos, videos, notes, websites, snippets, digital history, schedules, tasks, and mail and other messages, combined with real-time information from our devices and services. It is more than what we think of as the shell today, and no current label really fits where we are headed. Neither the desktop nor the social graph describes this new experience, and neither does the search box, the pin board or the file system."

Ballmer's statement that "we will not focus upon another social network for people to participate in casually" also implies that its social network, So.cl, will remain a technology play, rather than a distinct product.


Microsoft raised eyebrows when its first introduction of the Xbox One console focused less on its capabilities as a game console and more as a TV set-top box. But Microsoft's announcement that it would combine live streams of NFL football games with fantasy-football updates in real time is an example of Microsoft's plans for gaming, which include using the Xbox One to provide what it calls "interactive participation".

"Although we will enable these activities effectively, our biggest opportunity is in creating the fun people feel most intensely, such as playing a game that lasts hours and takes real concentration, or immersing them in live events and entertainment (including sports, concerts, education and fitness) while allowing interactive participation," Ballmer writes. "Interactivity takes engagement and makes things serious; it really requires differentiated hardware, apps and services. People want to participate at home and on the go, and in gatherings with others."

Ballmer also writes that Microsoft also sees "opportunity in fitness and health," which probably implies, at the least, a pedometer app for Windows Phone as well as more opportunities for Microsoft's Kinect peripheral. One of the opportunities for Kinect for Windows, Microsoft executives have said, is assisting physical therapy by guiding patients through the proper movements.


Finally, there's Windows 8, which Ballmer has called the "most remarkable replatforming from Windows," based not in small part on its revolutionary UI. And that, apparently, will not go away.

"We will continue to reinvent the core 'shell' of our family of devices and build upon what we have started with Windows 8," Ballmer writes. "We will keep evolving our new modern look, expanding the shell so that it allows people and their devices to capture, store and organize their 'stuff' in new ways. Our UI will be deeply personalized, based on the advanced, almost magical, intelligence in our cloud that learns more and more over time about people and the world. Our shell will natively support all of our essential services, and will be great at responding seamlessly to what people ask for, and even anticipating what they need before they ask for it."

We've already seen some examples of this: The Live Tiles in the People app within Windows Phone and Windows 8, for example, already display the images of a user's contacts. Meanwhile, Microsoft "evolved" the Start page in Windows 8.1, sharing background images with the desktop and reworking the Apps screen.

What's clear is that Ballmer has a goal in mind for Microsoft, and this week's reorganization was simply the latest milestone on its journey. It's a rare thing for a company to outline its plans for the future, even conceptually. Time will tell, however, if it's headed in the right direction.

Friday, 28 June 2013

Storm clouds ahead for PE-backed IPOs?

FORTUNE -- Is window for private equity-backed IPOs about to shut?

That's the question many private equity managers must be left with today, after a disappointing performances by CDW Inc. and HD Supply Inc.

These are two companies that share almost nothing in common besides private equity ownership. CDW (CDW) is a profitable, Illinois-based computer reseller that was taken private via a traditional leveraged buyout back. HD Supply is an unprofitable, Atlanta-based construction supply company that was taken private via a carve-out from Home Depot Inc. (HD), with Home Depot retaining a minority ownership stake and strategic relationship.

But both companies came up well short of their IPO intentions, and barely popped in their first day of trading.

CDW raised $395 million after pricing 23.3 million shares at $17 a piece, compared to original plans to offer 27.9 million shares at between $20 and $23 per share. Cut out of the final offering were anticipated share sales by private equity firms Madison Dearborn Partners and Providence Equity Partners. CDW closed the day up just 8.06% to $18.376 per share.

HD Supply raised more money ($957 million) by pricing 53.19 million shares at $18 per share, but that was well below the company's $22-$25 per share offering range. And the company closed up just 3.67% at $18.66 per share.

Neither company broke the $20 mark at any point during the trading day -- a trading day that saw strong performance from both the Dow (up 114 points) and the NASDAQ (up 26 points).

So what happened?

My hypothesis is that investors were spooked by what tapering talk is doing to the bond markets, and how that may affect the ability of PE-backed companies to refinance debt going forward. CDW was carrying nearly 3.7 billion in debt through March 31, while HD Supply was larded with a whopping $6.62 billion. Both companies plan to use some IPO proceeds to pay down those totals, but obviously it will be relatively small bites.

In the past (and by "past" I mean "before June"), public market investors didn't seem to be worrying much about such leveraged loan repayments. Hopefully the companies could meet their obligations but, if not, they could just refinance. After all, there's been no better friend to private equity over the past three years than Ben Bernanke.

Today, however, that recent convention is being challenged. Just ask CDW backer Madison Dearborn, which had to cancel a pair of refinancings earlier this month. Isn't it reasonable that public equity investors are beginning to price in this new-found risk?

There are a lot of companies taken private during the 2005-2008 "Golden Age" that remain in private equity portfolios, for which IPO is the only viable exit option. And perhaps CDW and HD Supply are anomalies. But, if they are the front-end of coming storm-front, then private equity shops will soon regret slow-playing those hands.

Follow me on Twitter @sajilpl

Thursday, 27 June 2013

One dead as Egypt simmers ahead of rallies

CAIRO - Egypt's ruling Muslim Brotherhood said one man was shot dead and four wounded in an attack on a provincial party office, stoking factional rivalries ahead of mass rallies starting on Friday.

It blamed activists who are campaigning to force President Mohamed Mursi to resign as he marks his first year in office.

The incident, in the Nile Delta city of Zagazig north of Cairo, took the death toll to five in factional fighting that has also left scores injured over the past week and raised fears of wider violence during the coming days of demonstrations.

Liberal opposition leaders dismissed an offer by Mursi to cooperate on reforms to end a political deadlock that has plunged the biggest Arab nation into economic crisis, two years after the Arab Spring revolution that overthrew Hosni Mubarak.

That has set up a showdown in the streets in the coming days. Mursi's Islamist supporters and some opposition groups plan rallies on Friday, and the broad opposition coalition hopes to bring millions out on Sunday to demand new elections.

The army has urged both sides to reconcile and has warned that it could step back in to impose order if violence spins out of control - though it insists it will defend the democracy born out of the uprising against Mubarak in early 2011.

Mursi and the Brotherhood accuse loyalists of the old regime of being behind violence and of thwarting their efforts to reform an economy hobbled by corruption. Opponents say the Islamists, who have won a series of elections against a diffuse opposition, of seeking to entrench their power and impose Islam.

In a speech on Wednesday, Mursi denounced his critics but admitted some mistakes and offered talks to ease polarization in politics that he said threatened Egypt's new democratic system.

But opposition leaders said their protests would go ahead.

"Dr. Mohamed Mursi's speech of yesterday only made us more determined in our call for an early presidential vote in order to achieve the goals of the revolution," the liberal opposition coalition said after its leaders met to consider a response.

"We are confident the Egyptian masses will go out in their millions in Egypt's squares and streets on June 30 to confirm their will to get the January 25 revolution back on track."

CROWDS

With the start of Egypt's weekend, people began to gather in Cairo's Tahrir Square, site of the uprising of January 25, 2011, and at venues in other towns. The atmosphere was largely festive but there widespread fears of trouble in the days ahead.

It is hard to gauge how many may turn out but much of the population, even those sympathetic to Islamic ideas, are deeply frustrated by economic slump and many blame the government.

Previous protest movements since the fall of Mubarak have failed to gather momentum, however, among a population anxious for stability and fearful of further economic hardship.

The army, which helped protesters topple Mubarak and is on alert across the country guarding key locations, says it will act if politicians cannot reach consensus. The United States, which continues to fund the military as it did under Mubarak, has urged Egypt's leaders to pull together.

MEDIA

In his speech, Mursi threatened legal action against several named prominent figures. He said some judges and civil servants were obstructing him, and accused liberal media owners of bias.

Hours after he publicly accused one TV channel owner of tax evasion, the businessman, Mohamed al-Amin found he was under investigation and barred from leaving the country, prompting his lawyer to tell Reuters: "This is dictatorship." Amin's channel notably airs satire modeled on that of U.S. comic Jon Stewart.

Separately, officials ordered the arrest of a talk show host on another channel known for his anti-Islamist diatribes and ordered that station to be shut down for inciting mutiny in the army and for insulting the armed forces and the police.

An anchor on state television resigned dramatically, live on air, in protest at what he said were attempts by the information minister, an Islamist, to control his program.

Instability in the most populous Arab nation could send shocks well beyond its borders. Signatory to a key, U.S.-backed peace treaty with Israel, Egypt also controls the Suez Canal, a vital link in global transport networks between Europe and Asia.

"Egypt is historically a critical country to this region," U.S. Secretary of State John Kerry, who is on a tour of the Middle East, said on Wednesday, highlighting economic problems.

"Our hopes are that all parties ... the demonstration that takes place on Friday or the demonstration that takes place on Sunday, will all engage in peaceful, free expression," he said.

With the government short of cash and seeking funding from allies and the IMF, Kerry said Egypt should curb unrest in order to attract investment and restore vital tourism income. The U.S. ambassador in Cairo has angered opposition activists by saying explicitly that their protests risked being counter-productive.

Follow me on Twitter @sajilpl

Wednesday, 26 June 2013

Paula Deen Cruise Forges Full Steam Ahead

Paula Deen Food Network Key Art - P 2013

Despite rough waters in the wake of Paula Deen's N-word scandal, the embattled celebrity chef's cruise line is poised to forge ahead with two trips booked for 2014.

A representative for the company told Fox News in a statement that the annual Paula Deen Cruise remains in popular demand, with an additional journey planned for next year because of "so many requests from Paula's fans in the past." Added the rep: "It's always an amazing time with Paula, her family and fans. If she goes – we go."

Calls and emails to Royal Caribbean PR were not immediately returned Tuesday.

STORY: Anne Rice Defends Paula Deen Against 'Lynch Mob Culture'

Meanwhile, other pieces of Deen's empire have begun to unravel since the 66-year-old culinary star admitted to having used the N-word during a deposition in a discrimination lawsuit brought by a former restaurant employee. Last week, the Food Network -- which housed her TV series for more than a decade -- said it would not renew her contract when it expires at the end of the month. Then, on Monday, she lost her endorsement deal with pork company Smithfield, which for many years has sold a ham with Deen’s name and face on it.

The status of her business relationships with companies that carry her cookware line and other products -- such as Target, Sears, Walmart and QVC -- remains up in the air. As for her bimonthly magazine, Cooking With Paula Deen, Hoffman Media remains mum on whether it will continue the publication and has maintained it does not condone "discrimination of any kind." And although Deen is set to release a new book, Paula Deen's New Testament: 250 Favorite Recipes, All Lightened Up, in mid-October, Random House says it's "closely monitoring the situation" surrounding the comfort-food icon.

On Tuesday, her sons Jamie and Bobby, who have their own Food Network show, Road Tasted, defended their mother in an interview with CNN. Said Bobby: "We were raised in a family of love and of faith and a house where God lived. Neither one of our parents ever taught us to be bigoted towards any other person for any reason. … Frankly, I'm disgusted by the whole thing because it began as extortion and it became character assassination."

 

Rupert Murdoch's News International Rebrands as News UK Ahead of Split

Rupert Murdoch

News International, the U.K. newspaper arm of Rupert Mudoch's News Corp. that was engulfed in the phone-hacking scandal, is rebranding under the name News UK, the company said Wednesday.

The news came ahead of the News Corp. split into two companies, which will be completed on Friday. News UK, led by CEO Mike Darcey, is the parent company of The Times of London, Sunday Times and tabloid The Sun. It will be part of the new News Corp publishing company. The other company to be created by the split is entertainment conglomerate 21st Century Fox.

The future publishing company also said Wednesday that it would rebrand its News Limited unit in Australia as News Corp Australia.

The units' new names and logos "are designed to convey a more coherent and logical identity for the new parent company across the globe," the companies said.

“This is an exciting time and I feel privileged to be leading News UK as it begins a bright new chapter," Darcey said. "With new people and a new strategy, we will take our place within a new company determined to secure a sustainable future for professional journalism around the globe."

Acknowledging the hacking scandal and its fallout, News UK highlighted the "fundamental changes of governance and personnel that have taken place to address the problems of the recent past."

Darcey said that for the U.K. business the focus will be on "building on The Sun's success as the most popular paper and maintaining The Times and The Sunday Times as two of the most trusted news brands in the world."

Added Darcey: "This is the platform from which we will continue to entertain and inform our readers, but also challenge the world around us, using our voice to bring about positive change and hold powerful and vested interests to account."
Meanwhile, News Corp Australia operates businesses in print, digital media and TV, including Australia’s largest group of newspapers, a 50 percent stake in pay TV giant Foxtel, pay TV sports network Fox Sports and digital real estate business realestate.com.au.

In an email to staff, News Corp Australia CEO Kim Williams said the new branding was designed "to emphasize the central part we play in the network of the best companies in the worlds of diversified media, news, education and information services.”

He added: “We will work alongside our global News Corp colleagues to combine our extraordinary assets in boldly creative new ways, creating compelling products. We will reach new heights as we will continue to entertain, inform and educate many millions of consumers across the world.”

Email: Georg.Szalai@thr.com
Twitter: @georgszalai


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