So far, focus at Microsoft’s Build developer event on the audio-driven Cortana PDA has garnered tremendous publicity. Saugatuck believes that Cortana right now provides a sexy sideshow distracting from what Saugatuck considers to be a public acknowledgement by Microsoft concerning its core strategic positioning.
In Saugatuck’s opinion, the Microsoft news this week with the greatest impact on Microsoft and IT markets was announcement of free Windows licensing on smaller mobile devices.This announcement puts clear and massive Microsoft internal and ecosystem emphasis on Cloud; it positions Cloud as keystone in Microsoft’s strategic business. That’s an excellent move, and at in business terms, it is much more sexy than the Cortana PDA. The move helps to push developers and users away from traditional computing devices, and reduces (and over time removes) the company’s opportunity for massive, volume-driven revenue growth in smaller, more numerous devices.
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