Strategic Plan For Microsoft Server Tool Business Growth

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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

Reduces administrative issues and provides…