Tablet and Cloud Lead Priorities in 2013

Tablets and cloud services are major priorities for Microsoft in 2013 as it aims to right the Windows consumer business and maintain growth in the enterprise. To address these priorities, the company will try to extend its technology and licensing reach further beyond PCs to mobile devices and focus more development and sales effort on cloud services. Understanding Microsoft’s priorities can help organizations anticipate the company’s technology roadmap and plan purchases for the coming year and beyond.

Extending Reach to Tablets

In 2013, Microsoft will expand efforts to promote its tablet hardware and platform to enterprises, but it will also release more technology for competing tablet and smartphone platforms.

Tablets Key to Securing Windows, Office Future

Microsoft is moving quickly to adapt to Apple’s iPad, hoping to secure the future of its Windows and Office businesses. The iPad and similar tablets on Google’s Android platform have found a foothold with consumers, depressing consumer PC sales and noticeably squeezing revenues for the Windows client OS, over 75% of which come from sales with new PCs. (See the illustration “Revenues by Microsoft Division“.) The impact will probably accelerate: Windows revenues have been shored up by a wave of deployments of business PCs with Windows 7, a process that will eventually end (55% of enterprise desktops already run Windows 7, according to Microsoft). Also, organizations have begun to buy and deploy tablets for tasks that formerly required a PC, such as mobile access to reports or point-of-sale transaction entry, and organizations increasingly allow employees to work on personal tablets under “bring your own device” policies. Both developments could reduce business PC usage and demand.