Nadella's Debut: Does Office Salesmanship Matter?

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March 27 (Bloomberg) -- Bloomberg's Cory Johnson and Bloomberg Contributing Editor Paul Kedrosky react to Microsoft unveiling Office software for the iPad. They speak with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Start with you.

How big a deal is this that office could be on our ipad?

It is a big deal.

It comes in the context of two thanks.

One is trying to find better ways to sell office products, cut down on piracy, and have individual users take office everywhere they are.

We are in a different world where you bring devices of their choice in their office place and they will sit down in front of a pc that has microsoft software on it within ipad that does not.

This is a big attempt for microsoft to go to a place where less -- to a place with more.

That is a big move from that standpoint.

It signals what microsoft is doing generally.

It would be much more interoperable, where they will have a cloud service of oracle, and office of software, and where they want to have their competing experience everywhere and it take meaningful revenues this year for microsoft from the product.

It makes sense.

I will just ask paul why it took so long.

Why did it not happen ages ago?

Microsoft has left billions of dollars on a table almost certainly.

The in the middle the presentation, i kept expecting ballmer to be busting through the backdrop to take down the microsoft executive through the presentation.

Nevertheless, yes, this is the problem.

This company has been ill-equipped in dealing with the world that pretends on the other operating systems other than microsoft.

It took having both of them in a sense exit the company.

Before they could change that.

Is this going to be enough?

It is big.

So big that at one point, the government looked to break it up.

You now have a very large company you could say is more like a blue chip ge, they growing tech company.

How much of that might be factored in to that taking so long to do?

There is a cultural bias against enabling apple.

They wanted apple to barely survive, gave them in porton help about 15 years ago when apple needed financial help, and launched a product on the apple macintosh, with financial help along the side.

It is a very different world right now.

Mandela did this in the cloud business of microsoft.

You can see the board wrestled with those kinds of decisions.

They are clearly embracing that in some xbox platforms as well as other products.

That will be key to the company going forward.

A lot of revenue will be coming from a product.

There could be as much as a billion dollars a year.

That ain't nothing.

Is he the key then?

His background, his willingness to embrace competitors, is that going to be part of this, if it is successful?


The cloud is agnostic and all embracing.

That side of the business forces agnostic system with technologies.

The love apple or hate apple, you do not have the luxury with cloud services.

I would like to see him take it further.

I would love to see cloud and apps and separate companies -- truly, then, i would see the company with a re-growth story.

That is how central the cloud is to the business.

What will that mean in the overall scheme of things for the company and its revenue?

That is exactly what they're talking about.

They are talking about selling subscriptions to the office.

It could have a serious impact on the counterfeiting.

As much as 50% of the microsoft product offices are fitted and do not have correct users licenses.

The notion of being on continuous subscriptions of microsoft, putting microsoft office on the cloud, that is a big change for the system and they are moving with all divisions into that direction.

Talk to me about the energy in the room.

You can say a lot about steve ballmer, but you cannot say he did not have energy when he got up there and spoke.

So much energy who is often sledding pretty heavily.

When you heard it today, did you feel a similar kind of energy had channeled it a different way?

How different will he be from his predecessors?

My open question is not whether or not steve was a better salesman were that they could be very different.

Who is the buyer?

Who is the chief decider?

Will it be the consumer in a world where the consumer decides i want this new ipad thing to work in my office and the corporation follows, or will it still be the people steve ballmer is selling, to whom he is calling to demand a meeting?

That is the open question and i do not think we know the answer to it.

It is one he will have to figure out.

In seeing them, they stand in contrast to each other.

Would you say there is more of a cool factor he is bringing to the marketplace that might be advantageous?

That is a low hurdle, but absolutely.

There is definitely a cool factor.

To cory's point -- a low bar, i know.

The future is about these kinds of convincing people to tie into these cloud services and things like that and security associated with it.

That is not a sale that he ever did well.

He is not the guy you selling the service you had to tie into for years.

We shall wait to see.

Thank you for joining us.

If you want to be president,

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


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