What Changes Are Happening At Microsoft?

Source: Thinkstock

Source: Thinkstock

As Microsoft’s (NASDAQ:MSFT) new fiscal year begins, the company is making changes in its product game. In an open letter to Microsoft employees, CEO Satya Nadella outlined a culture shift at the company from PC first to mobile and cloud first. In the days since then, how that strategy will happen is still unfolding.

Microsoft’s game change is the Nadella’s work. The CEO is making sweeping changes at the technology firm since its appointment to the top job last February. Unlike his predecessor, who considered the Windows PC Microsoft’s core product, Nadella is willing to make changes that emphasize mobile and cloud-based technology over Windows.

Microsoft revealed at the 2014 Microsoft Worldwide Partner Conference that the company’s latest products would be taking on Google (NASDAQ:GOOG) (NASDAQ:GOOGL) Chromebooks and other competitors head on. HP is releasing a $199 Windows laptop just in time for the holiday shopping system. Low-priced Chromebooks have been a thorn in Microsoft’s side as the inexpensive netbooks lured customers away from Windows products. Between that and Apple’s (NASDAQ:AAPL) Mac computers, the dominance of the Windows PC was being challenged. It is also working on low-end tablets to better compete with the iPad and Android tablets.

The company is also allowing more of its software to run on rival devices. The Office for iPad app was a great success among iPad users. It is also doing more to encourage its partners to use more of Microsoft’s cloud-based products, a transition that shows Microsoft’s announced new direction is not just for show. So far the reaction has been mixed.