As Microsoft starts its new financial year - with the local unit under a new leader - it will accelerate its push into the cloud and its bid to bring in devices at more affordable price points.
Zoaib Hoosen, who yesterday became MD of the South African unit, says cloud services and devices are the company's largest growth areas, and the local unit will follow CEO Satya Nadella's implementation of its strategy as it transforms.
Hoosen says Microsoft is in an "interesting time," noting the company, with a new global CEO, is poised for a new direction. He says the software giant is adjusting its vision from a "PC on every desk" to "cloud for all on all devices".
However, notes Hoosen, moving to this vision locally will require solving a few complex problems, such as developing skills for the new cloud era, deepening access and increasing the penetration of devices.
Several changes have already taken place globally, as it is giving away Windows to makers of smartphones and small tablets for consumers, offering Office for iPads, opening Windows to developers and hardware hackers, and launching Cortana - its answer to Siri and Google Now.
The software giant is also taking on Apple in the car space, with news that it has developed a touch- and car-friendly interface that allows Windows devices to mirror what is on-screen.
Device growth
Locally, Microsoft is seeing "excessive" growth of its cloud offerings - 150% year-on-year - although this is off a small base, says Hoosen. He adds the company will continue to invest in this area. However, to bolster cloud adoption, more devices need to be rolled out.
Hoosen notes Microsoft's EUR5.44 billion purchase of Nokia's devices unit will assist the company when it comes to gadgets. He says the traditional PC world has broadened to devices, opening up a target market that is six times bigger.
Although Microsoft currently has a smaller share of this market, it provides more opportunities for growth, says Hoosen. According to the IDC, Microsoft had 3% of the smartphone OS market in the last quarter of last year.
Hoosen hopes to soon be announcing Microsoft's first $100 phones and sub-$200 tablets in SA, which need to be supported with relevant services. "This has already started to take shape with the announcement last week that we're increasing free storage on OneDrive from 7GB to 15GB," he adds.
Hoosen's position as COO will not be filled, as his promotion into that role was a "conscious move in terms of preparation for a succession plan," says Mteto Nyati, former MD and now GM of Middle East and Africa.
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