Switchfast Blog: The Future of IT
Microsoft CEO Steve Ballmer on the "New Normal"
Tuesday, September 29, 2009 by Michael Holley
CNET's Microsoft Guru, Ina Fried, posted this public email from
Steve Ballmer this morning. Good read. See Ina's original posting
here.
----- Original Message -----
From: Steve Ballmer
To: Ina Fried
Sent: Tue Sep 29 04:08:15 2009
Subject: The New Efficiency
In all the talk about the economy, one term that comes up more and
more frequently is something called "the new normal." I like this
phrase because it speaks to the fact that economic reality has
undergone a fundamental shift over the course of the past 12
months.
So what is the nature of this shift? After years of economic
expansion fueled by unrealistic rates of consumption and
unsustainable levels of private debt, the global economy has reset
at a lower baseline level of activity. Today, people borrow less,
save more, and spend with much greater caution.
This is the new normal and it will be with us for some time to
come. The issue now is how to respond.
I believe the new normal requires a new kind of efficiency built
on technology innovations that enable businesses and organizations
to simultaneously drive cost savings, improve productivity, and
speed innovation.
Because you are a subscriber to Executive Emails from Microsoft, I
want to share my thoughts with you about how information technology
can enable organizations to operate more efficiently, more
effectively, and more strategically as they respond to the new
normal by moving toward the new efficiency.
THE NEW EFFICIENCY: WITH LESS, DO MORE
In the new normal, one thing is clear: cutting costs is extremely
important. But cost cutting by itself is not a long-term winning
strategy. To build a sustainable competitive advantage, companies
must ultimately do two things-increase productivity and find ways
to deliver new value to customers.
The issue, then, is how can organizations take costs out of their
operations, increase productivity, and expand their capacity for
innovation all at the same time?
For years, we've talked about how information technology enables
companies to do more with less. But during this economic reset, IT
provides business leaders with the answer to a slightly different
question: Can my company with less, do more?
Other trends give this question even greater urgency. Workforces
are more distributed and employees are more mobile. Government
regulations are increasing and compliance requirements are
mounting. Data security is more important to preserve and more
difficult to maintain.
At the same time, companies struggle with legacy technology
systems built on incompatible and disconnected applications that
limit access to information and impede collaboration. The
complexity of these systems forces IT departments to focus too much
of their time and too many of their resources on providing basic
services and protecting security.
Today, a new generation of business solutions is transforming IT
into a strategic asset that makes it possible to cut costs without
crippling customer service or constraining workforce creativity and
effectiveness. A new generation of business solutions is
eliminating the barriers between systems and applications, and
automating routines tasks so IT professionals can focus on
high-value work that is aligned to strategic priorities. These
technologies can help organizations reduce risk, improve security,
and drive down support costs.
This is IT how achieves the new efficiency with less.
At the same time, these technologies streamline access to
information no matter where it is stored and enable people to work
together securely no matter where they are located. This new
generation of business solutions also provides improved mobile
computing capabilities so people who work in a branch office, at
home, or on the road can be as productive as employees who work at
corporate headquarters.
Most important, a new wave of IT technologies offers advanced
tools that enable employees to transform insights into innovations
that address unmet market opportunities and meet unfulfilled
customer needs.
This powerful combination of greater productivity and improved
capacity for innovation is how IT enables businesses to do
more.
SOFTWARE SOLUTIONS FOR THE NEW EFFICIENCY
This year, Microsoft is introducing a wave of new software created
specifically to enable businesses to tackle their most pressing
challenges and strengthen their ability to deliver innovation to
the marketplace.
It starts with Windows 7, the newest version of our flagship PC
operating system. Windows 7 simplifies tasks and lets people get
more done in less time with fewer clicks. Ready to deploy now, it
enhances corporate data protection and security, and increases
control to improve compliance and reduce risk. Part of our Windows
Optimized Desktop solution that includes Microsoft Desktop
Optimization Pack, Windows 7 streamlines management of PC
environments, making it easier to reduce costs, improve
performance, and enable end users to work anywhere.
These and other enhancements are the result of close collaboration
with millions of customers and thousands of IT professionals who
participated in testing programs and provided suggestions about the
capabilities and improvements they wanted to see. Thanks in large
part to their help, Windows 7 is the best PC operating system we
have ever built.
We've also just released a new version of our server operating
system. Windows Server 2008 R2 is designed to increase the
reliability and flexibility of server infrastructures. It provides
a productive server platform that offers cost-effective
virtualization and business continuity, great power saving
capabilities, and a superior experience for end users.
Later this year, we will also launch Exchange Server 2010. The
cornerstone of Microsoft's unified communications technologies,
Exchange Server 2010 provides a great email and inbox experience
that extends from the PC to the phone to the browser and it helps
companies archive and protect information efficiently. It also
enables companies to reduce costs by delivering a built-in voice
mail solution and providing low-cost storage options.
ACHIEVING THE BENEFITS OF THE NEW EFFICIENCY TODAY
Organizations around the globe are already deploying these
solutions and reaping the benefits.
At Intel, for example, Windows 7 is providing improved
performance, greater application responsiveness, and a better
platform for mobile workers. Ford is taking advantage of Exchange
2010 and Windows 7 to streamline communications, improve decision
making, and boost productivity. Continental Airlines expects to
save more than $1.5 million annually in hardware, software, and
operational costs through the server virtualization capabilities of
Windows Server 2008 R2 Hyper-V technology.
At Convergent Computing, an information technology consulting firm
based in California, Windows Server 2008 R2 and Windows 7 will
eliminate the $40,000 in annual spending that was needed to
maintain a virtual private network for the company's 55 employees.
In addition, employees can now access the company's corporate
network instantly and download files 30 to 40 percent faster than
before.
Another example is Baker Tilly, a London financial services firm
with more than 2,000 employees and a network of partners in 110
countries. One of the first businesses to deploy Windows 7 on a
company-wide basis, Baker Tilly expects to save about $160 per PC
by reducing deployment, management, and energy costs. And because
Windows 7 improves productivity, it offers the potential to
increase billable time for mobile workers at a rate of nearly $600
per PC. This could return the equivalent of one-half of one percent
of the company's current gross annual revenue to the bottom
line.
Businesses aren't alone in their struggle to respond to the new
normal. Governments must figure out how to deliver more services on
budgets that are sharply constrained by falling revenue. As part of
its response, the city of Miami deployed Windows 7 and expects that
it will save nearly $400,000 a year in reduced security,
management, and energy costs.
IDEAL CONDITIONS FOR AN ERA OF INNOVATION AND GROWTH
Despite the challenges posed by the global economic reset, I'm
optimistic about the long-term opportunities that lie ahead.
I'm optimistic because there are encouraging signs that growth may
resume in many parts of the world during the course of the next
year.
More than that, I'm optimistic because I believe we are entering a
period of technology-driven transformation that will see a surge in
productivity and a flowering of innovation.
The new efficiency will not only help companies respond to today's
economic reality, it will lay the foundation for systems and
solutions that connect people to information, applications, and to
other people in new ways. The result will be a wave of innovative
products and services that will jumpstart economic growth as
companies deliver breakthroughs that solve old problems and serve
as the catalyst for new businesses and even new industries.
This too will be the new normal-economic growth driven not by debt
and consumption, but by rising productivity and new ideas that
provide real value to people throughout their lives. Information
technology will play an important role. I look forward to seeing
the progress that results.
Steve
----------
Best,
Michael Holley
Switchfast Technologies
Chicago IT Consulting
& Support
Rochester
IT Consulting & Support
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