High expectations for revenue growth after Nokia acquisition.
By acquiring Nokia's mobile division, Microsoft expects to increase its smartphone revenue by launching competitive models in all price ranges. This was stated in an exclusive interview given to "K" by Norm Juda, Chief Technology Officer of Microsoft Worldwide Services, on the occasion of his visit to Athens.
The senior executive of the American giant also said that high technology opens paths for economic recovery, as it makes it easier for businesses with an innovative idea to be created and succeed anywhere in the world. At the same time, he predicted that the next big change for the average person will be the proliferation of interconnected devices they use – from televisions to car dashboards. Microsoft's goal, he added, is for its services to be present on all of these devices.
What were the reasons why Microsoft decided to acquire Nokia's mobile division?
– To expand our presence in smartphones, now also being involved in the manufacture of devices. In this context, we will benefit from Nokia's sales network, customer service and of course from its tradition in the design of impressive models, as well as in the development of new technologies - e.g. for wireless charging of phones.
The next year will be a transitional one, so from the fiscal year after that, the signs of this business move will start to appear. The bar has been set high in terms of sales of new devices. Recently, Blackberry admitted that it cannot compete with iOS and Android, leading many analysts to argue that any third "ecosystem" has little chance of significantly increasing its shares. What is your opinion?
– I believe that the course of Windows Phone to date practically refutes these estimates. We should also not forget that there are developing countries (e.g. China, Brazil), where smartphone penetration is not high. At the same time, even in mature markets (such as Europe), the average user changes device every year, which means that they could well change the “ecosystem”. Therefore, a wide range of models, starting from affordable devices and reaching sophisticated smartphones, has the conditions to overturn the current situation.
Will the acquisition help Microsoft develop devices with technical features that will better combine with its software?
– Undoubtedly, although this does not mean that we will not utilize Nokia services, such as its excellent maps. More generally, our goal is for our services to be present on any type of device that the user can use to access information.
Moreover, what will happen in the coming years is that the average person will start to use many more "terminals" with an Internet connection - e.g. the computer system in his car, his television, even public kiosks - which, in fact, will communicate with each other. Through the cloud, Microsoft's goal is to allow the user to "transfer" his profile to all these "terminals", so that his contacts, emails or files "follow" him on each one. As well as to alternate between his professional and personal profile, adjusting the level of security he desires.
Especially in the case of PCs, what is your response to those who claim that Windows 8 failed to revive their sales?
– Windows 8 is a very successful product, with licenses sold exceeding 100 million in the first six months of its release. Furthermore, it is misleading to associate it exclusively with the performance of conventional computers, since the operating system supports many other categories of devices that have great appeal – such as tablets and “hybrid” devices.
What innovations does Microsoft have in the works?
– Systems that will allow machines to understand voice and gestures, thus making interaction with them more natural. Our advantage is that these systems are based on technologies that allow devices to “learn” their user’s habits, making them extremely reliable. Also, in a few years Skype will be able to translate conversations in real time, so that two users can communicate while speaking a different language.
Can high technology help the global economy recover?
– Its great contribution is that it gives a good idea anywhere in the world the opportunity to succeed commercially. Firstly, because a new company can now easily and quickly acquire the digital infrastructure it needs and, secondly, because it offers it the tools to not only address a broader customer base, but also to “listen” to consumers’ opinions in order to adapt its products.
I think this is extremely valuable, especially for business ventures that start in local economies that are in crisis.
Do you think the revelations about the NSA's mass internet data collection could hurt Microsoft? Also, many countries or the EU are considering laws that would prohibit the transfer of citizens' data outside their territory. What could be the impact on technologies like the cloud?
– Regarding Microsoft, I should clarify that the company does not voluntarily cooperate with the NSA, but simply complies with what is provided for by American law – as it does in the other countries where it operates. Regarding the second part of the question, it is indeed possible that there are laws that, for some categories of data, provide for their storage only locally.
However, the economic aspect of the issue is also important. I will give you an example, with Mexico's VAT information systems. The options we gave the government were to create two data centers in Mexico, an investment of $100 million, or to utilize the cloud and have the data stored in our infrastructure in Texas. It chose the second scenario, as its cost did not exceed $5 million.
Source: portal.kathimerini.gr
