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EAGAN, Minn., Oct. 31, 2013 /PRNewswire/ -- Communications know-how integration knowledgeable NACR is comfortable to announce the launch of NACR Ovation Managed capabilities for Microsoft Lync, offering protection and monitoring of Lync-based voice and unified communications (UC) options. the brand new offer is a part of NACR's UC integration follow and the multivendor support provided beneath the company's managed features portfolio.
NACR is a number one international integrator of best-in-type communications options and features, and a depended on consultant to more than 5,500 consumers ranging from small companies to FORTUNE® a hundred and world agencies. The enterprise works carefully with Microsoft and other know-how innovators to integrate the latest hardware, software, applications, and services into conclusion-to-conclusion multivendor options for distinct markets.
As a Lync licensed guide accomplice (LCSP), NACR holds the optimum degree of Microsoft Lync aid accreditation, proposing NACR engineers with direct access to level 3 and 4 Microsoft engineers. additionally, NACR is a designated U.S. Microsoft national techniques Integrator (NSI) with advanced gold competency in UC and silver competency in messaging. As an NSI partner, the business has invested vastly in Microsoft technical supplies and performs a leadership role in setting up and providing next-era solutions on the Microsoft platform.
"unlike offers from other carrier providers, NACR Ovation Managed services for Microsoft Lync comes with the added advantages of our years of multivendor voice journey and our in-depth realizing of how voice works in Microsoft and different environments," mentioned Gerry Pearce, vp of features development for NACR. "moreover, our assist allows customers to leverage the equal portal and equipment for monitoring Lync that they use to display screen their telecommunications infrastructure, to increase communique reliability, efficiency, and cost."
The NACR UC integration group contains solution architects and repair engineers maintaining more than 600 industry-diagnosed certifications from Microsoft, Avaya, Cisco, extreme Networks, IBM, and different know-how leaders. additionally, NACR has extended its foreign aid capabilities to encompass a Microsoft apply and is a founding member of the new Unified Comms Alliance (UCA), which may be the area's greatest Microsoft Lync global alliance. committed to planning, deploying, and keeping refined converged communication solutions global, UCA members have years of experience working with Microsoft and associated expertise companions, products, and services.
currently supporting greater than 2 million managed voice ports, NACR offers finished monitoring and upkeep for multivendor systems, including these using both Microsoft and Avaya solutions. NACR capabilities valued clientele are additionally backed via three state-of-the-paintings community Operations centers (NOCs), guaranteeing 24x7x365 assist even within the adventure of a localized catastrophe.
"On excellent of our latest consulting and knowledgeable capabilities constructed around Lync, NACR Ovation Managed functions for Microsoft Lync is the logical next step as NACR continues to extend our portfolio of functions for Lync and our top of the line-of-breed, multivendor UC integration capabilities," mentioned Pearce. "in addition to providing monitoring, escalation, and state-of-the-paintings NOC assist for multivendor environments, as an NSI we now have a direct line to the highest certified Lync specialists at Microsoft — enabling our group to collaborate at once with Microsoft and get to the bottom of practically any concern as right away as viable."
NACR helps Lync 2013 and 2010, as well as alternate 2013, 2010, and 2007, together with the underlying infrastructure. furthermore, NACR offers tiered tiers of service in response to a customer's wants, with merits akin to guaranteed response instances, 24x7x365 proactive monitoring and alerting for UC methods, regular UC atmosphere studies with a senior solutions architect, and updates and software unlock administration (SRM) services.
To be trained more, contact your NACR representative or call the enterprise at 888.321.NACR (6227).
About NACRAs a leading global integrator of company communications options and features considering the fact that 1993, NACR has been a relied on marketing consultant to greater than 40% of the Fortune a hundred businesses, helping them use technology to raise the collaboration, contact core, and statistics verbal exchange experience. We serve as a single source for consulting, implementation, assignment administration, training, maintenance, and managed services that improve productiveness, effectivity, and customer carrier. With a team of over 800 client-focused and licensed employees, we've continually been recognized by using our companions, suppliers, and shoppers for excellence. For greater advice, discuss with: www.nacr.com
newsMicrosoft Touts Lync 2013 cellular equipment help, Skype Integration
Microsoft's opening keynote speak at its Lync 2013 conference in San Diego on Tuesday featured a couple of firsts.
Derek Burney, corporate vice chairman on the Skype Division, confirmed what he called the "first demo" of simultaneous voice-over IP (VoIP) and video on the home windows mobile. subsequent, Burney proven the same potential over an Android cell equipment, as well as an Apple iPhone and iPad. The message turned into that Microsoft is keeping broad guide for quite a few mobile structures with Lync. although, an additional factor of the demo became to reveal that the performance of the user interface became in fact the same across all the devices, even while staying true to the equipment operating gadget design.
there have been just a few changes in terms of the position of some command buttons on the a considerable number of instruments, but the standard experience was similar, enabling individuals to have full voice and video conferencing on their numerous cellular gadgets. an extra aspect made through Burney throughout the keynote became that both Lync Server 2013 and Lync online can enable this mobile capability.
Microsoft additionally introduced some Lync roadmap details. Lync on-line updates will start arriving on a quarterly basis. The next version of Lynch online is expected this month, based on Burney. in accordance with a blog publish through Tony Bates, president of the Skype Division at Microsoft, Microsoft will add commercial enterprise voice guide to Lync online in the next 18 months. commercial enterprise voice, which is Microsoft's time period for VoIP, is a little trickier with Lync on-line as it requires the use of a carrier company, in line with Microsoft partner Avanade.
Microsoft has grown its enterprise voice deployments to 5 million seats, up from three million 14 months ago. Microsoft now counts more than 1,000 Lync companions.
Microsoft in the past released Lync Server 2013 in October. a new version of Lync Server is expected to appear within the 2d quarter of 2014, based on the blog submit by using Bates.
Microsoft additionally launched the Lync client for home windows eight in October, but Burney mentioned that clients can predict to peer a faster release cadence now that it is a windows keep app. The subsequent version of the windows 8 Lync app is anticipated this Friday, he brought.
Per the blog submit, Microsoft expects to carry Lync 2013 mobile apps for windows mobilephone eight and iOS instruments in "early March." An Android Lync 2013 cell app is expected to arrive in April. amongst other particulars, Microsoft is promising superior battery life with the brand new apps.
The Lync customer has four communications modalities and a "prosperous presence" model that allow clients to change their repute and set name forwarding. Contacts lists can also be sorted by using identify or through group, and americans are shown in org charts. clients can click on and spot their conversation histories. there's additionally a new persistent group chat characteristic that outlets immediate messaging conversations. The calendar is integrated so that clients can just click on on it to be part of a gathering, and then they can see people on the name, with as much as four pictures streaming, Burney defined.
Microsoft expects to "add structured assembly guide to Lync online and the subsequent edition of Lync Server" in the next 18 months, in line with the blog put up. That addition will allow Microsoft's live assembly purchasers to flow to Lync.
Lync Room SystemMicrosoft confirmed off the way it conceives of subsequent-technology videoconferencing for groups via demonstrating an emerging "Lync Room equipment" product from sensible. The smart equipment proven on the event consisted of two massive-screen lcd screens side via side, with the left display devoted to white board activity, whereas the correct side confirmed the meeting participants. A Lync Room device contains committed hardware operating the Microsoft Lync Room system version application, and includes a high-definition video camera and wideband audio for assembly contributors.
moreover smart, different hardware partners producing Lync Room systems consist of Crestron, LifeSize and Polycom. they're expected to birth offering systems this summer, in line with Burney.
existing video teleconferencing methods (VTCs) take a normal of 12 minutes to get began, and are just too complex, Burney contended.
"people do not know a way to work the conferencing systems in a board room," Burney talked about. "What if you had a button to push to do it all?"
The contact monitor of the Lync Room gadget permits clients to make use of a pen on a white board or they can movement content round. "in the digital world, remote individuals can add to the white board," Burney referred to. PowerPoint slides can also be introduced and users can increase the slides independently.
Skype and LyncMicrosoft's progress in adding the consumer Skype VoIP provider to work with Lync become confirmed at the keynote event. The work isn't somewhat last yet, in response to Burney. He showed the consumer interface in Lync and Skype and how it's fairly "seamless" to connect the usage of both service. as an instance, the demo on the adventure showed Bates sending an IM from Skype to Burney on Lync. Burney then clicked on an icon and related to Bates by the use of Skype. That demo changed into described as yet another "first" by Burney.
"What we have in reality seen right here is bringing people together in a seamless manner," Bates observed. "now not is it siloed. this is gone."
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By Raquel Durá, Public Relations Manager, Microsoft
Microsoft continues to gain the trust of new institutions in the field of education. Recently, the University of Cantabria (UC) has implemented Microsoft Office 365, which includes Exchange Online, Sharepoint and Lync functionalities. Thanks to this project, more than 15,000 students at Cantabrian University now take advantage of the connectivity, security, and flexibility associated with cloud computing technology.
By betting on Microsoft Office 365, UC students now benefit from more modern and high-capacity tools, similar to those used by their teachers: “Students will begin to get familiar with the applications they will encounter in the vast majority of companies, as they join the workforce” said Javier Crespo, Responsible for Systems Infrastructure of the IT Service at the University of Cantabria.
For the university, the most immediate benefit was the ability to free up resources for other computer science tasks which are more directly linked to teaching. Added to that, the leadership of the Centre was very pleased to offer its students a high quality service at a very good cost.
On the other hand, the European Space for Higher Education recommends that students complete a larger volume of work and projects in groups. “Thanks to Microsoft Office 365 features like Lync Online and SkyDrive Pro, the University can offer its students a set of modern collaboration tools that can help complete these sort of tasks” says Javier Crespo.
The large deficiencies of the student e-mail system led the IT Service department to look for an appropriate solution that could raise the quality of the services offered to the employees of the university and, at the same time, optimize students’ online space. The former platform offered a limited mailbox capacity (300 MB per user) and an obsolete user interface and functionality. Added to these obstacles, there was a lack of a full integration with mobile environments and a scarcity of collaborative and personal assistance tools (agenda of contacts, calendar, etc.).
The IT Service department at the University considered various possibilities to renew the students’ email services, in the end they chose to outsource and embrace the cloud services, provided by Microsoft. “Microsoft Office 365 was not only the most economical and functional solution, it also allowed us to free up resources for other tasks within the corporate information systems”, Crespo details.
The professionals in the IT Service department at the UC already knew Microsoft technology in-depth, treasuring years of experience with the Exchange System. “Migration was not only easier, it also allowed us to create a hybrid environment for future scenarios, that included local users and users hosted in the cloud,” reveals Javier Crespo.
Microsoft Office 365 caters perfectly the needs of some users to connect to their e-mail from their mobile devices. Besides technological motivations, compliance with the legislation became a decisive factor, in the words of the technical specialist: “We were very interested in t strictly maintaining the rights and privacy of our users, as well as respecting all national and European regulations. In that sense, besides sufficient guarantees, Microsoft was also flexible with the contract, including additional clauses that our particular case required”.
Rapid and efficient implementation
A Microsoft engineer was laid at the disposal of the Cantabrian University who facilitated the implementation of the Microsoft Office 365 project from a technical point of view. Also, this professional served as support in case any incidents arised during this phase. In any case, it was a simple process, carried out entirely by the University and divided into three phases: migration and implementation of Exchange Online, activation of Lync Online, and finally, activation of SharePoint Online. During all of these phases, the IT Service department created technical documentation and video tutorials which facilitated their entry into production.
Currently, the University of Cantabria enjoys different features of Microsoft Office 365, which will likely be extended in the future. Exchange Online was launched in March, 2013; Lync Online in May 2013; and Sharepoint Online, in October of the same year. The academic institution is convinced to continue putting their trust in Microsoft solutions: “in the future, we are interested in further expanding the use of collaborative work tools, as well as communication and cross dissemination of knowledge among our students. Therefore, we are interested in exploring what enterprise social networks such as Yammer can provide in this regard,” concludes Javier Crespo.
About MicrosoftFounded in 1975, Microsoft (Nasdaq “MSFT”) is the world leader in software, services and solutions that help people and businesses develop their full potential.
About the University of CantabriaThe University of Cantabria is a public institution, whose main objective is to contribute to social progress through its commitment to teaching and scientific excellence. To achieve its aims, it seeks a constant improvement of the quality of its work, which results in a process of review and improvement of all its teaching, research and administrative activities. Web site: www.unican.es
Tags: ICT infrastructure, Office 365, Spain
Balfour Beatty has signed a new contract with Fujitsu to provide email, extending an IT transformation deal the companies agreed in July 2013.
Ten months has passed since Fujitsu won an IT transformation contract with Balfour Betty to transform its IT infrastructure and outsource second- and third-line support. Danny Reeves, CIO Balfour Beatty (pictured), speaks about how the Fujitsu contract supports his IT strategy and the rationale behind extending it to messaging.
The construction services company plans to implement a single collaborative messaging platform to support 14,000 UK users, across approximately 900 sites, based on Microsoft Exchange.
Fujitsu will support the implementation of the messaging platform using Microsoft Exchange 2013 to replace 14 existing email platforms and enable the use of Microsoft Lync.
Speaking to Computer Weekly about the new deal, Reeves says: "When we signed the original agreement we highlighted other projects we wanted to do." One such project was consolidating and simplifying the company's disparate email systems.
This new contract extends the user computing part of the original Fujitsu contract, Reeves says: “We are standardising on applications and devices. Now it makes sense to standardise on messaging.”Email consolidation
Balfour Beatty mainly runs Microsoft Exchange, plus some Lotus Notes, but with a number of email domains – which means there is no single Balfour Betty email address."We will standardise on Microsoft Exchanges 2013, which will run as a service, using our existing Fujitsu hosting contract," Reeves explains.
The upgrade will enable Balfour Beatty to share a global address list and roll out Lync, Microsoft’s unified communications platform, for instant messaging. "Implementing this collaborative messaging platform will help our employees better engage with each other and our customers," Reeves says.
While Balfour Beatty will not be rolling out IP voice and video, Reeves says: "We will have the back-end infrastructure to support this."
He says the Exchange service is built and operated out of existing Fujitsu datacentres, and effectively run as a private cloud.End user standardisation
Through the original agreement, Balfour Beatty's user computing environment is predominately based on laptops or mobile devices. Around 20% of its user computing environment will be desktop-based. Reeves says the plan is to standardise around a standard laptop, ultrabook and mobile workstation device plus a standard and power desktop environment. The workstation and power desktops will be used to support its building information model applications.
As Computer Weekly previously reported, the company will be standardising on Windows 7. It has reduced its master application list from 5,800 applications down to 450. Originally, Balfour Beatty's intention was to have 1,500 applications. "We exceeded rationalisation, and have standardised [on Exchange 2013 for] messaging and Office 2013." Reeves says that, instead of running eight or nine different applications for tasks such as creating PDFs, the company standardised on a single application. It is using Adobe for its PDF writer and reader software. Balfour Beatty took this approach across its software inventory, reducing the number of applications to under a tenth of the number before the Fujitsu contract.Preparing IT for digitisation
Through the original contract, Balfour retains first-line support. Part of the contract involved outsourcing second- and third-level support. Reeves says this frees up IT to focus on the business. "A key part for us is to focus on the business. We are an international construction services business and we partnered with Fujitsu to provide commodity IT services.
Over the last 20 years IT has focused on driving out cost and improving efficiency. The IT industry is now moving into the value part
Danny Reeves, CIO, Balfour Beatty
"It provides a foundation for us to launch into disruptive technologies. I am putting a team together to redraw our technology roadmap, which will look at new areas we want to focus on."
His ambition is to improve business value for Balfour Beatty. "The early years of IT was about technology. Over the last 20 years, IT has focused on driving out cost and improving efficiency. The IT industry is now moving into the value part. Businesses are starting to recognise there is real value in their IT estates."
Speaking about Balfour Beatty's IT function, he says: "We are in the construction industry and we are starting to look at how we can derive value from IT.“ But, as he has previously admitted: "In construction and engineering – which is a very mature and low-margin industry – we’re at a very early stage of technology adoption for business value. By leveraging the technology and using the available data to re-engineer operations, we can create value for the company."
The company will be moving into a pilot roll-out of its user computing strategy in July, which includes the Exchange 2013 email service, and aims to migrate 13,000 users by the end 2014.
Microsoft CEO Steve Ballmer and the company’s newly announced leadership team answered a wide range of questions about the “One Microsoft” reorganization on a conference call with reporters and analysts.
It was a rare public discussion with the company’s key leaders. Among other things, Ballmer confirmed that Microsoft isn’t planning any layoffs as a result of the changes. Hardware leader Julie Larson-Green and operating systems leader Terry Myerson explained how their teams will work together to be competitive and nimble against Apple and other rivals.
At one point, Ballmer quoted a sports analogy from Qi Lu, the new apps and services leader, to explain the reorg.
“Qi Lu likes to say we have to be more like a football team,” he said. “That is, we all play a specific position, and we run every play together; than we do like a baseball team where athletes are oftentimes more individual in their orientation, if you will. And so from strategy to execution, we’ve been driven on this thing. And I think that’s quite important.”
Here’s the full transcript, which was published as a Word doc on Microsoft’s investor relations site.
One Microsoft Conference CallSteve Ballmer and leadership teamThursday, July 11, 2013
FRANK SHAW: Thank you, operator, and thank you, everyone, for joining us this afternoon.
With me today are Steve Ballmer, chief executive officer, and the Microsoft Senior Leadership Team.
We’re glad that we have some time to share a little bit more of the thinking behind the changes we’re announcing and what they mean for our future. And with that, I’d like to turn it over to Steve, who will make a few prepared remarks. After that, we’ll open it up for questions. Steve?
STEVE BALLMER: Hi. Thanks, everybody, for joining us today, and it’s great to have a chance to chat with you, along with our leadership team. This is certainly a big day for all of us.
During today’s call we thought it would be valuable to share with you some additional context on the announcement, and then have a chance to take questions.
Over a year ago we started a shift in our business to a devices and services company, software development as a core asset, delivered through devices of our own and our partners, as well as services.
Since then, we’ve shipped a lot of great products. We launched Windows 8, Surface, Windows Phone 8, Office 365, and we very significantly advanced Windows Azure. We brought a consistent user interface to PCs, tablets, phones, and the Xbox, and connected all of the content customers care about in the cloud via SkyDrive, all while moving to continuous product cycles.
However, we’re excited to deliver more and to do it with even greater speed, efficiency and capability. To do this, we really wanted to refine both our mission and the strategy that we’ve laid out, and then put in place the right structure to execute against that mission.
As we thought about our mission, we went back to what has been our core mantra for the last 10-plus years, to help people and businesses throughout the world realize their full potential. That mission still drives us today, and it’s core to who all of us are.
So going forward our strategy as a company will focus on creating a family of devices and services for individuals and for businesses that empower people around the globe, at home, at work, and on the go for the activities they value most. And I’d underscore that, activities people really value. That’s at the heart and soul of what it takes to help people realize their full potential.
We’re a company who helps people get stuff done. When it comes time to lean in, even if it’s for serious fun like Xbox, we’re the company that delivers great high value experiences for work and for play.
We’re going to do this by leveraging our strengths. We’ve actually been in the business of thinking about devices for many, many, many years. Really in a sense Windows is the definition of a device called the PC, and we’ve had the great honor to be part of shepherding that forward for many years; Xbox, a product we’ve had in market for over 10 years.
We’ve certainly focused in on high value experiences through products like Office and Skype, a more recent acquisition, which focuses in on the moments in life that are most important and most valuable.
And we’ve certainly focused in on business and enterprise customers as well through products like Windows Server and Exchange.
The form of delivery of our value will shift to really thinking about devices and services versus packaged software, but the focus in on the high value activities in people’s lives will not change.
The frontier of high value scenarios that we enable will continue to march outward, and we have strengths and proven capabilities on which we will draw to define new experiences in expression, meeting, research, tasks, the way corporate information gets managed and held securely, and much, much more.
All of this means that we need to move forward as one Microsoft with one strategy and one set of goals. We’ll have one approach to the marketplace, whether it’s business partners, innovation partners, developers, IT people, or consumers. We’ll have one technology base to enable us in core areas as opposed to two or more. We’re one Microsoft.
The next thing we’ll do is ensure that every discipline — legal, finance, marketing, business development, et cetera — at Microsoft becomes stronger. And the best way to get strength in each discipline is to pull them together.
In the engineering area specifically, the best way to get to one technical base or one technology base is to make sure that we’re pulling together things and having people collaborate where they need to, not duplicating efforts, and, of course, investing in very strong engineering systems and tools.
So we will pull together into fewer core engineering groups, and we will pull together all of the other functions, all of the other disciplines, under leaders who work for me directly.
In order to execute then on this one Microsoft strategy, we’re organizing by discipline and by engineering area.
Of course, at the end of the day, we have to deliver great products, a great family of devices and services and experiences that help people realize high value activities.
So we will have teams that function across the company and across engineering areas to deliver on a high value experience or device type like Windows, which literally has engineering content already today from our entire company, and involvement from a variety of innovation partners.
So we have the notion today that teams work across the company. That’s fundamental. But we’ll formalize, we’ll organize by discipline, and we’ll have product champions who bring together our cross-company teams to deliver our core products and high value scenarios.
Certainly the new organization structure introduces changes to many of our employees. However, perhaps the larger change of each employee’s experience over time will be new ways of working. We have the most talented people in the industry. Their ideas, passion, focus and energy are paramount to us delivering delightful, new high value experiences to the billion-plus people around the world who are customers today and the billions more we aspire to serve.
To harness all of that we’re moving forward and working in new ways. With our employees today we shared five characteristics that we want to embody in each and every one of us. The first is being nimble. In a world of continuous services the timeframe for product releases, customer interaction and competitive response are dramatically shorter than ever before, and we need to make the right decisions and make them more quickly, balancing all the customer and business imperatives.
The next is communicative. In the new rapid turn world we need to communicate in ways that don’t just exchange information but drive agility, action, ownership and accountability.
The third is collaboration. That means the ability to coordinate effectively with and amongst our teams and disciplines to get results, build better products faster, and drive customer and shareholder value.
The fourth is decisive. We have a clear strategic direction. We’ve laid it out, one Microsoft, focused in on a set of high value experiences, delivered through devices and services for businesses and consumers. But we need to now empower the employees who are closest to the customers to make decisions in service of that larger mission.
The last is motivation. Our employees are incredibly motivated by the real opportunity we have to impact positively the lives of our customers when they’re doing the things that are most important. In our industry every day brings more opportunities than the day before, but we do have such an amazing opportunity to make a difference in the lives of billions of people around the world and that motivates us in a significant way. I’m thrilled when talented new hires tell me they joined Microsoft to change the world. That’s what we do today, and that’s what we’re motivated to do tomorrow.
I hope this gives you a little greater perspective on where we’re headed and how we’ll get there. As I said earlier, it’s a big day for me and the women and men around the table who form the Microsoft leadership team, and we appreciate your taking time from us. We’re ready to take Microsoft in bold new directions, and really delight both our consumer and business customers.
Thanks for your time, and we look forward to your questions.
FRANK SHAW: Thanks, Steve.
We want to get as many questions as we can, so please stick to just one question and avoid long or multipart questions.
Operator, go ahead and repeat your instructions.
BRENT THILL, UBS: Thanks, Steve. If you could just discuss the impact to revenue and operating expenses, as certainly I understand in the near term it won’t have a dramatic impact, but how you think about this long-term if your game plan plays out relative to the revenue and operating expenses?
STEVE BALLMER: Well, the key goal, of course, is to extend the impact we can have in the efficacy, the innovation, and the breadth of footprint of the innovation, which is a real focus in on innovation and the revenue and profitability that goes with it. I’ll let Amy Hood, our CFO, fill in additionally.
AMY HOOD: I think that’s right. As we said, this is really about setting us up for long-term profit growth. And I look forward and believe that that sets us up to do that.
FANK SHAW: Operator, next question please.
DINA BASS, Bloomberg News: Steve, do you anticipate any job cuts as a result of this? For example, in the marketing area you used to have a central marketing group, and then marketing in the individual product units. Those are now being consolidated into one unit. Do you expect that will result in a redundancy?
STEVE BALLMER: We have no plan for layoffs. We certainly want to extend what we’re doing, and we will ‑‑ obviously part of the reorganization is mapping people to a set of new and expanded needs. And we anticipate lots of opportunities to do that.
DINA BASS: Thanks.
FRANK SHAW: Operator, next question.
JANET TU, Seattle Times: Hi. I’m wondering how this reorg will be reflected in the financial reporting, and what will be the divisions in the earnings report when that’s reported?
AMY HOOD: Hi, it’s Amy again. Obviously we have an earnings announcement next week. I will be reporting using our current operating section plans. Obviously the requirement over a period of time is to report your systems in the way that the CEO manages it. So as we go through this reorg and through the realignment, we’ll obviously investigate any needed changes over time.
FRANK SHAW: Great. Next question.
HEATHER BELLINI, Goldman Sachs: Hi. Great. Thank you, and congratulations on the announcement. Steve, I was wondering if you could share with us a little bit on how this realignment might enable you to change your go to market strategy on the device side of the business, in particular things like Surface, and your ability to maybe embrace the partner channel a little bit more as a result, and maybe get involved in some bundled selling with some of your existing offerings like Office?
STEVE BALLMER: Perhaps I’ll let Tami Reller lead off, and then Kevin Turner also give some comments.
TAMI RELLER: Great. Thanks, Heather. This is Tami. I think that definitely behind this one marketing strategy and organization that we have, we fundamentally believe we’re just going to be able to go to market much more effectively in an integrated way. I think that’s something that our partners, whether it’s retail partners or the OEM partners that we work so closely with, have been asking us to consider. It will help them be more efficient, and I think it will make us more effective in the field. And we think that’s something that will help our sellers, whether they’re Microsoft employees or our partners.
KEVIN TURNER: This is Kevin. On the first party hardware side, as well as the third party hardware side that we have, we are driving both changes in our go to market approach. We’ve retransitioned some people, repurposed some people around device selling, and we’re also driving device quotas. In addition to that, something we haven’t done in the past, you’re also seeing us do some strategic partnerships with the likes of Best Buy and others as well as our own stores to be able to light up the scenarios and the experience, and really get the learnings first hand. So yes, we’re really tuning the go to markets, and radically changing them in some capacity to really ramp up the devices and services go to market.
STEVE BALLMER: Maybe just one other thing I would add on the OEM front, our work with HP, Dell, Lenovo, I would say we have always had a very, very, very engaged relationship, but the level of engagement continues to dial up. The level of innovation in their devices keeps dialing up.
Kevin and I were both just at our Worldwide Partner Conference, actually many of us were. We had a device bar, we call it, at the conference that had, I think, devices, 105 different devices from probably 50 different manufacturers. And I think we’re starting to really see that shift from our partner base to kind of a modern looking device. It’s almost hard to call the new Windows devices PCs in all cases. They look so different than “traditional PCs,” but it’s good to see Windows and our OEM partnerships and devices with Intel processors changing so much and adapting to the needs and changes in the world.
FRANK SHAW: Great. Next question, Operator.
WALTER PRITCHARD, Citi Research: Thanks. My question is actually a follow-up to what was just asked on devices. And, Steve, you even from your shareholder letter last year talked about devices, and you now have a whole group focused on it with a competent leader. And it just seems as though the footprint out in the market today is relatively minimal especially versus where it was five years ago. It hasn’t changed a lot. And I’m wondering as we think forward to the next, I think lastly you’ve added sort of Windows abstractly as part of the device portfolio. As you look forward over the next three to five years can you talk about how we should expect to see that device portfolio expand? I understand you’re not going to preannounce product, but just in an abstract sense, how we should think about areas of the business where the delivery may with devices works, just not today? Thank you.
STEVE BALLMER: Yes, I think what we highlight in our communication with our folks is whether it’s the very smallest or the very largest device we need to ensure that we see innovation in our operating system, in our partners hardware and in our own hardware to meet the opportunities that we see in the market for quite a broad range of device types. And with Xbox One coming to market here over the holiday season, with some of the work we’ve done with Surface, with some of the work our partner Nokia has done with the incredible line of Lumia phones, you certainly see an expanding breadth of Windows devices quite dramatically and I would say expect to see it.
I can tell you one thing, if you want to have a knock-down, gorgeous experience with an enterprise customer, you show them our 82-inch Windows 8 tablet, sometimes known as the PPI board, I don’t fail to get every CEO who sees one to say give me one in my Office and oh by the way, we’d better get the devices, the phones, the tablets, the PCs that work well with that. So you’ll see us invest across a wide range of device types, both first party and third party.
FRANK SHAW: Next question, please?
ADRIANNE JEFFRIES, The Verge: Hi, thanks so much. My question is, Steve, with Julie and Terry leading separate software and hardware teams, how do you feel you can bring devices to the market in a way that Apple and other competitors do? Will they work closely enough and collaboratively enough to compete with Apple?
STEVE BALLMER: Yes, Julie and Terry will answer that.
JULIE LARSON-GREEN: I think it’s a perfect way for us to approach it. It’s definitely; Terry and I have worked together for a long time. We both have worked on the operating system side. I’ve worked on the hardware side and it’s a good blending of our skills and our teams to deliver things together. So the structure that we’re putting in place for the whole company is about working across the different disciplines and having product champions. So Terry and I will be working to lead delivery to market of our first party and third party devices.
STEVE BALLMER: Yes, and maybe just also have Tony Bates add a little bit. Tony is going to have a critical role running business development evangelism, our role with our hardware innovation partners, our OEMs.
TONY BATES: Yes, I would just add to that. Julie alluded to this first party, there’s also a third party, and I think having a single one both interface to our key innovation partners, but two bringing together the way we think about offers with our partners is going to be absolutely critical. So when we think about how we work together I think of going back to one strategy, one team. So we’re all going to be part of that. It’s going to be critical that we have that interface going forward.
ADRIANNE JEFFRIES: And is Terry there?
TERRY MYERSON: Yes. I thought Julie and Tony had it very well said. We’re building ‑‑ we’ve got innovative ideas coming from our OEM partners and Julie’s team has some very innovative ideas. And the platform needs to span from the PPI whiteboard that Tony talked about to Xbox, to our phone, and beyond. So it’s exciting to have all these hardware partners in the Windows ecosystem, or in the Microsoft ecosystem and all the innovative ideas and to bring it to market together.
FRANK SHAW: Thanks very much. Next question.
JUAN PEREZ, International Data Group: Hello, thanks for taking my call. I assume that under the Applications and Services Group you have under that division consumer online services like Bing, and also the Office stack, including Word, Excel, as well as the server side products like SharePoint and Exchange. If you guys could comment on what’s the goal there and what you hope to accomplish with that particular product realignment.
STEVE BALLMER: Qi Lu will handle that one.
QI LU: Yes, thanks for the questions. So if you look at our strategy, the key focus is for Microsoft to deliver scenarios that enable our users to pursue activities they value the most. The new groups, the application services groups for Bing, as we mentioned, our mission is always to help people not just find information, but complete tasks, because when people search they always they’re doing search in the context of accomplishing a task. They look at Office, its strong, strong server assets enable people to get more done. Skype in our new division is a key, key asset in Lync, to connect al the people, because you do all these things always in the context of collaborating, sharing with somebody else.
So from that perspective the Application and Services Group’s fundamental focus is to use all those assets to truly deliver high value scenarios that enable our users to accomplish their goals doing things they value the most.
STEVE BALLMER: One other thing I would add is one of the technologies we believe in very much is machine learning, and we need to both develop more capabilities that serve our users through our applications as well as make machine learning basically a strong service to support other developers. And maybe Satya can just talk a little bit about kind of where we’re going with the cloud, and some of the things we’re trying to do as we learn from our own first party applications.
SATYA NADELLA: Yes. Our strategy as far as the cloud goes, it all stems from this one strategy and mission that the company has. So if you look at our cloud footprint, in fact, it starts with all of the first party applications from Xbox Live to Bing to Office 365. So we build the cloud infrastructure and our data center footprint in support of our first party applications. That not only battle tests our infrastructure, which then we provide to our third parties, both as a public cloud service in Windows Azure as well as our server products, and our server products are increasingly getting better because of that reinforcing cycle we have with our first party.
And machine learning is one set of technologies that we learned in Bing, now we are productizing as a set of services inside of Windows Azure and the data services that we have, and that is something that you will see in many other instances as well.
FRANK SHAW: Thanks. Next question. Operator, next question.
EDWIN CHEN, Reuters: Hi. Thanks for taking my questions. So there’s a sense out there that there’s been a growing level of, how do you say, an unproductive proliferation of red tape, and even a little infighting in past years that might have stifled, as you say, time to market for products. To what extent was that a part of your thinking and planning in this reorganization? And kind of a follow-up question to that, does this effectively hand more direct control over the process to Steve?
STEVE BALLMER: Let me make a comment or two and then pass it to Lisa. We spent as a leadership team literally hundreds of hours over the last six months further developing this notion of devices and services, what capabilities does the company need to really execute well? What capabilities do we need in engineering, operations, sales, in our business development function in order to reach out more effectively? How do we add depth to it? And we’ve really fleshed out what we’re thinking about high value activity. How do we really execute on it?
Qi Lu likes to say we have to be more like a football team. That is, we all play a specific position, and we run every play together; than we do like a baseball team where athletes are oftentimes more individual in their orientation, if you will. And so from strategy to execution, we’ve been driven on this thing. And I think that’s quite important.
The truth of the matter is a company this size doesn’t run in any one person’s brain. And in a way it’s much better a way to run the company, because now every day we have a whole group that’s involved in the company strategy as opposed to just a handful of people who are involved in the whole company strategy. And I think it lets us go stronger and deeper as a leadership team, frankly, than let me say our old approach.
Lisa Brummel maybe wants to make a comment or two also.
LISA BRUMMEL: I’ll just add that I think bureaucracy stems from people trying to translate how they should work together. And when you have singular units, you have to put in a lot of translation layers. As we go to one strategy and one team, there’s a lot less translation that needs to happen, and I think that’s what you’re going to see going forward.
FRANK SHAW: Great. Thank you, and we have time for one more question, Operator.
RICHARD WATERS, Financial Times: Thank you. Hello. Does this mean that senior managers won’t have direct profit/loss account responsibility that they might have had before? And, if so how are you going to hold people accountable, and what kind of measures are you going to use, what kind of incentives and measures are actually going to make this new senior management team work?
STEVE BALLMER: Suffice it to say the level of accountability we all feel for the success of the company rises when we all have to look at the company’s integrated profitability. I’ll let Amy talk a little bit about sort of the concepts, I don’t know that we’ll go into the specifics, but the concepts in terms of how we’re thinking. And there are pieces, obviously, that will have to have attention.
When it comes time to kind of how we’re doing with our consulting business, which is a multi-billion dollar business that doesn’t get discussed much; I think we’re all pretty clear. Kevin is on point. He thinks about it. He lives it. He eats it. He breathes it. He sleeps it every day. And I sleep well knowing that. There will be pieces, but I think the problem we’ve had in a sense, not the problem, but the opportunity we have is if you subdivide the thing into too fine a set of parts you don’t think about your R&D investments as a general corporate resource that should be repurposed and used very broadly. It’s my resources, my business, and so this notion even from a P&L and resourcing perspective of getting to a more one Microsoft strategy is very important and yet we need to have strong financial accountability and maybe Amy can talk about that.
AMY HOOD: Yes, I wouldn’t necessarily associate this new org chart to any reduction in accountability from a financial perspective. I think we have always thought about personal accountability around this table to product success. And I think that will not change in the new organizational structure. Steve’s used words like that already. I think whether we call it accountability or a P&L, or financial accountability it will still remain just as it has in the past.
STEVE BALLMER: In fact, I believe we have ‑‑ because of the focus on increasing discipline expertise, particularly in a devices and services world, we have a basis to improve our financial accountability particularly in these new delivery formats where frankly it’s different to deliver something that has production costs, if you will, than it is software, which basically has no production costs and we’re going to get excellent at that and part of accountability and excellence is what drives us in this transformation.
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