Matters reach a head for IT majors

Martin Taylor is no longer with Microsoft. Surprisingly, he even did a questions and answers session on Monday about the launch of Windows Live Messenger, but today he is not a Microsoft employee.

Billed as a potential successor to Bill Gates at 36, Taylor led Microsoft's anti-Linux push and was promoted as head-marketing, Microsoft Windows Live in March.

He had been a long-time lieutenant to CEO Steve Ballmer and had recently been put in charge of the company's strategy for taking on Google.

Thus, Taylor's exit is totally unexpected. Does it mean a weakening of Ballmer's position in the company? Analysts are asking. And with Taylor's departure, it appears to be a season of exits for senior executives.

In the last couple of months, senior executives of top IT companies, the world over, have either quit for 'personal reasons' as Taylor has cited, or given up the 'day-to-day' operations as Gates has declared. Such companies, apart from Microsoft, also include the likes of Sun Microsystems and Computer Associates.

In fact, the news that overshadowed everything else, recently, was that Gates, while still continuing as Microsoft chairman and advisor would be relieved of the day-to-day operations of the company (effective July 2008) to devote more time to his global health and education pursuit at the Bill & Melinda Gates Foundation.

The fact that Ray Ozzie has now become CSA (chief software architect) at Microsoft is perhaps the best thing that could have happened to the software major.

While he is well known for Lotus Notes, many would not know that he was the founder of 'Groove' (www.groove.net) -- bought over by Microsoft and rechristened Microsoft Office Groove 2007.

Ozzie then joined Microsoft. Groove is a desktop software designed to facilitate collaboration among small groups. The best thing is that it can be downloaded free of cost (unlike Microsoft).

Ozzie is expected to give Microsoft a new vision and help the IT giant be more 'open'. The company announced 'Windows Live' and 'Office Live' -- both seen as opportunities to gain revenue through online advertising and may be to get back at archrival Google.

Interestingly, Microsoft today is at a point where IBM and Intel stood some time back. IBM, as you see it today, has moved away from its PC and laptop business (sold to Lenovo) into consulting and services where the margins are higher. Intel, on the other hand, redesigned its logo to match the needs of the time. Microsoft can learn a few lessons from them.

Sun Microsystems' Scott G McNealy's story was different. He was one of the longest-serving chief executives of a major technology company and a fierce critic of Microsoft. McNealy stepped down (this April) after 22 years of service, though he will continue as chairman. The 40-year-old Jonathan Schwartz replaced him.

The change came at a time when investors were frustrated with Sun's stock price, which has been in single digits for years. Besides, profits have not been coming in -- so, not too many people shed tears at McNealy's departure.

Computer Associates, too, recently announced several management changes, including the exit of Gregory Corgan, its executive vice-president of worldwide sales. Closer home, Nortel India Managing Director Ashoka Valia moved as vice-president to the company's Canadian headquarters for 'personal reasons'. The company recently appointed Ravi Chauhan MD for its India operations.

C S Rao, president and CEO of Lucent India (a part of Alcatel now), too, quit.

The fact remains, although shareholders are very unforgiving when it comes to senior executives losing their vision. Fortunately, Gates made the move at a time when he was a brand icon. McNealy, unfortunately, did not have the same sense of timing. Who is the next head, in line, is a billion-dollar question.

Globally, analysts say Terry Semel, CEO of Yahoo, currently appears to be on safe ground and Google CEO Eric Schmidt is not in the limelight ever since the company's IPO float. He does not appear to be heading anywhere!

Want to discuss computer software? Join the Computer software Discussion Group