Satya Nadella Delivers Opening Keynote At Microsoft Build Conference
Microsoft CEO Satya Nadella delivers a keynote address during the 2014 Microsoft Build developer conference on April 2, 2014 in San Francisco, California.  Justin Sullivan—Getty Images

Why Microsoft's Future Suddenly Looks Bright Again

Feb 09, 2015

The first time I visited Microsoft in the early 1980s, it was in its then-new red brick offices in Bellevue, Washington, packing less than 50 people. You could walk down the halls and see Bill Gates plugging away at his keyboard and Paul Allen coding in a small office. In fact, I was told that I was one of the first analysts to ever visit Microsoft, as it was just gaining ground with its MS-DOS operating system thanks to IBM’s decision to use it in its first PC.

Consequently, I got to watch Microsoft grow from the beginning. It quickly became a high priority for me as an analyst, as its actions greatly impacted the growth of the PC industry. The company even asked me to advise on several different projects over the years, from its early experiments in graphical interfaces to its first steps into mobile. However, I haven't worked on any Microsoft efforts since 2004, and now mostly watch the company from afar.

While plenty of today's pundits write about how Microsoft missed the boat on mobile, I was concerned about Microsoft's Windows-only focus as early as the late 1990s. By then, the market was already starting to expand well beyond PCs and moving towards a mobile future. And after the turn of the millennium, I felt then-CEO Steve Ballmer had become so Windows-centric he could no longer see the tech world expanding and splitting into different directions. As Microsoft rival Apple gained important ground in music players, smartphones and tablets, I felt Microsoft was way too Windows-focused, causing it to miss the opportunity to expand the company well beyond the Windows brand that, while still important, was keeping the company from innovating.

Apparently Microsoft’s board had similar issues with Ballmer, who early last year was succeeded by Satya Nadella. While Ballmer and I had a strong relationship and often swapped ideas over lunch, I've only met Nadella once, and then only briefly. But since he has taken over, I've seen a new Microsoft emerge.

Microsoft is now more inclusive, finally embracing the diversity driving the next wave of personal computing. The recently revealed Windows 10 is a great addition to the Windows world, fixing the sins of Window 8. And Microsoft is finally doing something I lobbied for in the early days of its mobile efforts: Making a consistent Windows interface that functions about the same no matter what kind of device it's running on.

If what Microsoft is doing with Windows 10 isn't a strong enough indication of how the company's culture is changing, this might be: When I visited Microsoft last fall, a software team leader pulled out his personal iPhone to show off Microsoft apps built for iOS, like the new Outlook app. For a Microsoft employee to show off an iOS app would've been unthinkable under Ballmer. But Nadella is extremely realistic about making Microsoft relevant to all platforms, mining for dollars well beyond the Windows brand. That's fantastic for Microsoft, as it's a strategy that's going to give them broad potential in the future.

Tim Bajarin is recognized as one of the leading industry consultants, analysts and futurists, covering the field of personal computers and consumer technology. Mr. Bajarin is the President of Creative Strategies, Inc and has been with the company since 1981 where he has served as a consultant providing analysis to most of the leading hardware and software vendors in the industry.

See The Incredibly Goofy Evolution of Virtual Reality Headsets

Andrew Mishkin wearing a 3-D virtual display helmet that is connected to a six-wheeled roving vehicle. The rover was meant to explore the surface of Mars and send back information.
1988 Andrew Mishkin wearing a 3-D virtual display helmet that is connected to a six-wheeled roving vehicle. The rover was meant to explore the surface of Mars and send back information.Roger Ressmeyer—Corbis
Andrew Mishkin wearing a 3-D virtual display helmet that is connected to a six-wheeled roving vehicle. The rover was meant to explore the surface of Mars and send back information.
"Reality +" at the Virtual Reality Systems 93 show was described as a next generation, multi-player virtual reality entertainment system that gave a high sense of movement in a computer-generated world revealed in a head-mounted display.
The 3-player Budweiser virtual reality mask at the Food Marketing Institute's International Supermarket Industry Convention and Educational Expostion in Chicago.
A Virtual Reality contraption at the Sci Fi Channel booth at The National Cable Television Association annual convention, in San Francisco.
Soldier training using a virtual reality-simulated 3-D shootout at an Army facility.
A visitor checking out a virtual reality head-set at the G7 Information Society Showcase taking place at the European Parliament. The head-set was linked to a camera elsewhere in the building which the visitor could control through head movements.
A researcher at Tokyo University's Intelligent Modeling Laboratory wearing 3-D glasses, extending his hands to touch carbon atoms in the microscopic world at the laboratory's virtual reality room.
Visitors enjoy virtual reality driving with 3-D goggles and driving simulators for the presentation of Japan's automaker Nissan at the Tokyo Motor Show in Tokyo.
A visitor to the " Ars Electronica in a dish installation " Humphrey II" , which allowed virtual free flight through a 3D reconstruction of the city of Linz.
A girl wore a full color head mounted display with a built-in camera as Japan's machinery maker Hitachi Zosen and Shimadzu unveiled a wearable computer, consisting of the HMD and a palm sized Windows XP PC with a pointing device at a virtual reality exhibition in Tokyo.
Lt. David Shipley of the Adams County Sheriff's Department watched an interactive video that replicated the experiences of a schizophrenic patient having auditory and visual hallucinations while attempting to refill a prescription at a pharmacy.
Valeria Petkova, right, and student Andrew Ketterer, left, of the Karolinska Institute in Stockholm, tested the 'body-swap' illusion, a method whereby people can experience the illusion that either a mannequin or another person's body is their own body.
Raphael Pirker from Switzerland, founder of Team BlackSheep used virtual reality goggles to simulate the sensation of flight in the real world during a demonstration, flying from the perspective of a model aircraft, during a session of LeWeb'12 in Saint-Denis, near Paris.
A man seeking a job was equipped with 3D spectacles with sensors as he trained in Clermont-Ferrand, central France with avatars (background) in a virtual reality cube, at business incubator Pascalis.
Peter Kenny Jan Torpus, director of Lifeclipper project, tested the immersive augmented reality equipment in St Johanns Park in Basel, Switzerland.
Professor Karl Oldhafer, chief physician of general and visceral surgery at the Asklepios Hospital Hamburg-Barmbek, before liver surgery. Oldhafer used augmented reality, which allowed the liver to be filmed with an iPad and overlaid during the operation with virtual 3D models reconstructed from the real organ. This procedure helped locate critical structures such as tumors and vessels and was expected to improve the quality of transferring pre-operational resection plans into actual surgery.
British television presenter Rachel Riley showed a virtual-reality headset called Gear VR during a Samsung event ahead of the consumer electronic fair IFA in Berlin.
Tim Draper, Founder and Managing partner of 'Draper Fisher Jurvetson', tried out the latest in virtual reality technology the 2014 Kairos Global Summit at Ritz-Carlton Laguna Nigel in Dana Point, California.
A man played a game with the virtual reality head-mounted display 'Oculus Rift' at International Games Week in Berlin. The display transfers the eye movements to the game in real time.
Microsoft's Lorraine Bardeen demonstrates HoloLens headset during an event at the company's headquarters in Redmond, Wash. on Jan. 21, 2015.
1988 Andrew Mishkin wearing a 3-D virtual display helmet that is connected to a six-wheeled roving vehicle. The rover w
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Roger Ressmeyer—Corbis
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