While Amazon Web Services (AWS) may be the top cloud provider, it appears that its grip on the market is slipping while rivals Microsoft and IBM are driving new growth, according to Synergy Research Group.
Nokia CEO Rajeev Suri said the company's Networks business will begin delivering year-over-year growth in the second half of 2014, despite operating profit at the division slipping 14 per cent annually in the second quarter.
Microsoft on Wednesday unveiled the first Lumia-branded Windows Phone that will be sold at a price below €100 ($134), hot on the heels of news that sales of Lumia smartphones declined in the U.S.-based company's fiscal fourth quarter to the end of June.
Microsoft reported a 7 percent decline in its quarterly profit, largely due to the effects of incorporating Nokia's handset business. But the company's revenue increased with the addition of the $1.99 billion in revenues the company scored from Nokia's handset operations. Importantly, Microsoft sold 5.8 million Lumia-branded Windows Phones between April 25 and June 30. During the full second quarter of last year, Nokia sold 7.4 million Lumia smartphones.
Less than three months after touting an ambitious original programming slate at its April 29 Newfront presentation, Xbox Entertainment Studios has been shuttered by Microsoft.
Microsoft is going to wind down Nokia's Asha and Series 40 feature-phone businesses over the next 18 months to focus solely on devices running Microsoft's Windows Phone platform, according to an internal company memo. The decisions come as part of Microsoft's decision to cut 18,000 jobs, including 12,500 former Nokia workers, the largest restructuring in the company's history.
The job cuts Microsoft made to its Nokia devices business were not surprising, and they reflect Microsoft CEO Satya Nadella's drive to change Microsoft into a software and services company that enhances productivity for enterprises and consumers through its platforms. Devices will still be a part of Microsoft, but they will be used for a specific purpose: to showcase the best Microsoft experience, primarily in high-end gadgets.
The axe is falling for former Nokia handset workers. In its largest round of layoffs to date, Microsoft said it will cut up to 18,000 jobs this year, or 14 percent of its workforce. It is expected that many of those cuts will be to employees the company acquired when it bought Nokia's devices and services business for around $7.4 billion.
Apple's new enterprise mobility partnership with IBM could put more pressure on BlackBerry and Microsoft as well as Google and OEMs that use Google's Android software, according to industry analysts.
Microsoft CEO Satya Nadella knows his company needs to change if it wants to stay competitive--and he said the key to fostering change at the company is to renew the firm's mainstream products but also to stay innovative and "incubate" new things like wearable devices.