What Kind of Leader Does Microsoft Need?

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Aug. 23 (Bloomberg) -- Global Equities Research's Trip Chowdhry comments on Steve Ballmer retiring as Microsoft's CEO. He speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Years ago.

Trip, it's good to see you.

Welcome to "bloomberg west." you wrote a piece in april saying he needed to go now.

He suggested someone from google could come in and take his place.

We have to look at the issues microsoft faces right now.

They have a culture issue and a strategic issue.

The company over ballmer has been rewarding politics over performance.

What do you mean?

People are reworded for being in the majority of the process.

Anything people want to talk about that is different than windows, the history of executives being asked to leave, it shows that microsoft's basic strategy has always been windows and intel and that cycle broke today.

What is that about?

It is making simple things complex, solving complexity with complexity is not a recipe for success.

It works for them for so long and i also worry about steve's personality.

I have interviewed him many times and he really is a difficult interview because he does not want to say much.

But those moments when you see him really selling, let's just call this the famous monkey boy video, it's our favorite of all time.

I think i might have to play it at least half a dozen times during tonight's "bloomberg west," so stay tuned.

Did that work inside the company?

There were so many different fiefdoms.

It did work 15, 20 years back.

What do you think about windows?

If you ask about of a high school kid, it is not one of the first three or four words they remember.

Facebook, linkedin, iphones.

The windows story is good for entertainment purposes, but is it good enough to say, ok, we are going to increase the performance of each and every product 100 times and price it at 100 the price?

That's a recipe to succeed.

Look at salesforce.com, the spinoff from vmware.

Look at the start ups.

These companies are all working on this premise.

100 times performance, 100 times the price.

Look at amazon.com's flagship program.

Microsoft has nothing.

And they are right across the lake there in seattle.

When you look at microsoft, what do you see as their biggest business strength?

We should not look at it in terms of one big strength.

What is the one thing they need to fix right now?

It is the cultural aspect.

Complacency should be punished.

Today, all executives, even during the re-organization, they have been complacent.

In the cloud business, it has been enormously successful for microsoft.

According to the cio, it is the second-most important cloud business next to salesforce.com . i would disagree.

It depends on how you define success.

The question to ask is what is amazon easy to deliver?

Products to your house and the cloud.

36 times, amazon.com has reduced the price and they have economies of scale, and every day they put new services online.

The biggest change in the marketplace six months ago, amazon.com did a deal worth $600 million over 10 years time and it changed the industry overnight.

Who is winning today?

Amazon.com.

One key metric, the servers that they are putting in their data center is a $300 server running the secret sauce.

Everything is in software.

Amazon is the leader of the technology and is four companies i mentioned are going to set the tone for the new i.t.. the question to ask thomas's microsoft position to dictate the terms and tones of the new i.t.? i don't think so.

Trip chaudhry, we really appreciate it.

This text has been automatically generated. It may not be 100% accurate.

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