CASE-STUDY
Strategic plan for Microsoft Server Tool Business growth By Triumvir Consulting
Pratap Surya Chandar Balraj
Supreeth Meka
Sai Charan T
STB – Traditional asset
We know the Server & Tools Business (STB) division of our company is :
•
One of the largest revenue generating unit
•
Sales - $15.4 billion in fiscal 2010
•
Operating profit reached $5.5 billion in FY2010
•
Highest growing rate of all Microsoft divisions – 11.2%
Cloud computing – Promising Future asset •
Growing increase in adoption of virtualization
•
We started recognizing potential of
%server virtualised
cloud yet we need a strategic plan to lead 25
20
virtualization market
•
Public cloud and its market are growing
15
22.3
10
in below domains
i.
SaaS –Software as service
ii.
IaaS –Infrastructure as service
iii.
PaaS – Platform as service
12.8
5
0
2005
2.1
2009
2013
Michelle Bailey and Katherine Broderick, Market Analysis Perspective: Worldwide
Datacenter Trends and Strategies 2011, IDC, September 2012.
Our Objectives
•
To continue being the leader in traditional Server Tool
Business
•
To understand the changing trend in the market and adapt to it. •
To emerge as leader in virtualization market
•
To develop strategic plan for the new business and also to put forth solutions to stabilize traditional business
Today’s Situation
•
STB portfolio strategy - organized into two main functions,
R&D and marketing
•
STB – leading business
•
STB – 9000 employees in Product development
•
STB – invests a lot on R&D
•
Azure would be the platform of the future, enabling new generations of cloud applications.
•
Azure – promising business for future
•
Azure – faces some internal and market challenges
To do’s, threats and visions
To do
Traditional STB doing well and
Azure needs to come up
Azure products needs attention and requires improvement Collaborating both traditional and new business Threat s Plans
May loose focus while concentrating on cloud Maintain a good balance between the two
Incurs cost and time Identify cost efficient process and system
Sense of rivalry between two teams
Put forth new organizational structure
Recommended strategies
•
Redefined Infrastructure Investment
•
Change in organizational structure
•
Seamless collaboration of traditional and new business resources Redefined Infrastructure
Investment
Problem
STB releases packaged products frequently and deploys lot of infrastructure
Azure faces challenges rendering customer service and needs product improvement
Solution
Progressively focus on administration (by
Increase infrastructure so as to meet quality reducing additional expenses) rather on of the products and service server spending
Advantages
STB is stabilized and revenue is increased
Improvises the new business and yields good benefit in long term
Data points for support
1) Promising growth in cloud business
2) Change of focus from server spending to administration
3) Cloud computing and efficiency
Proposed Infrastructure Investment trend Investment in STB1
2013
2014
Investment in STB
2015
2016
2017
Change in organizational structure Problem
STB has more attention than cloud as per current structure
Cloud/Virtualization lacks focus on R&D and marketing Solution
Introduce new portfolios to govern new business (Cloud computing)
Collaborate both the business
Advantages
Collaboration or cooperation of best resources in leadership and yields
