Microsoft Corporation (NASDAQ:MSFT) is going through a number of key changes and challenges right now, but there’s plenty of hope that the company will find the right answers and move forward in a big way. JPMorgan analysts recently hosted investor meetings with some of Microsoft’s top executives and have provided updates on what’s happening at the company.
Microsoft makes progress on reorganization
One of the biggest changes that’s underway at Microsoft Corporation (NASDAQ:MSFT) right now is the reorganization. According to analyst John DiFucci and his team, executives say the reorganization is mostly complete. He did say some divisions have not reorganized yet because of pending product launches.
A related change has been adaptations to the way Microsoft reports its financial statements. The company said feedback on the new reporting structure has been “overwhelmingly positive” because of the greater transparency on gross margins and more information about items like commercial cloud.
Updates on Microsoft products
Executives also provided an update on Windows Phone, which continues to gain traction internationally, particularly in Western Europe and Latin America and mostly because of low-end offerings like the Lumia 520. China remains out of Microsoft’s grasp, however, at this point. Executives did say they need to focus on growing the Windows Phone app ecosystem and provided an update on the Nokia acquisition. JPMorgan analysts were not able to disclose information on the latter though.
Microsoft Corporation (NASDAQ:MSFT) also provided updates on the shift over to cloud services, citing growth in IT wallet share. The company also said it is reaching more users now with cloud services, which reduces piracy and keeps users up to date on the latest software.
Volume licensing remains strong at between 90% and 95%, with many customers renewing their licenses in the quarter after their previous renewal.
In spite of many calls for Microsoft to sell Xbox and Bing, the company said they remain a key part of their overall vision and suggested that Bing will become more integrated into Microsoft Corporation (NASDAQ:MSFT)’s popular productivity products. Executives also said they see Xbox as important within their vision of providing the same user experience across all sizes of screens.
Other updates from Microsoft
The company also said it’s working on touch-optimized versions of Office for Windows, iOS and Android but did not provide detail on timing. It also remained vague on the timing for the CEO search, but management emphasized the importance to take just the right amount of time to find the right candidate.