Microsoft crosses fingers for success of Windows 10

New operating system may save software maker’s mobile business

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

The release of Microsoft’s latest operating system (OS) may help save the company’s ill-fated mobile business acquired from Nokia for $7.2 billion in 2013, analysts say.

Windows 10 - due to be released on July 29 - will allow programmers to develop software for various devices such as PCs, phones, tablets, Xbox One and Microsoft’s virtual reality toy HoloLens.

“If a business could manage company phones the same way it manages PCs because it’s using the same infrastructure, that is powerful,” said J.P. Gownder, vice president of Forrester Research.

The software maker wants to use the momentum from Windows 10 to convince the software industry to develop more apps for its mobile version which in turn are hoped to increase Microsoft’s phone business.

“This mobile strategy going forward is the best they could possibly do,” Gownder said.

On Wednesday, Microsoft’s CEO Satya Nadella announced in an internal memo that the company is cutting 7,800 jobs, mostly from its phone business. The software giant also slashed 18,000 jobs last year.

“I am committed to our first-party devices including phones,” wrote Nadella.

“However, we need to focus our phone efforts in the near term while driving reinvention.”

However, some analysts say the job cuts indicates that Microsoft is exiting mobile.

“They're going to continue to be a tertiary player in mobile unless something dramatically changes,” Daniel Ives from FBR Capital Markets said. “Nokia was that Hail Mary acquisition that was clearly a failure.”

TRTWorld and agencies