Dumping Steve Ballmer: Microsoft’s Pros and Cons

At least one Microsoft investor isn't happy with chief executive Steve Ballmer's performance. David Einhorn, hedge store manager for Greenlight Working capital, called for the Microsoft chief to footfall down on Wednesday during a speech at an investor conference. Ballmer's presence is the biggest drag Microsoft's breed, according to Einhorn. The high-profile investor also blamed Ballmer for wasting billions along research and referred to Bing as a "sinkhole," according to The New York Multiplication. Microsoft's stock is wide advised undervalued at under 10 multiplication its expected earnings, accordant to Reuters.

Calls to disembarrass Ballmer from Microsoft's helm are nothing new, and similar issues were raised equally latterly every bit deep 2020 after Microsoft's board reportedly penalized Ballmer aside slashing his annual bonus by 50 percent. The plug-in reportedly punished Ballmer in response to Microsoft's shrinking smartphone market share and the Kin debacle.

Simply is dumping Ballmer a good idea? Here's a tone at a couple of pros and cons.

Diddle: It Could Make up Worse

Who is the heir apparent if Ballmer steps (or is pushed) apart? It's easy to blame Microsoft's problems on Ballmer, but IT will be harder to find a competent replacement. Ballmer's not irreplaceable, but a CEO switch-up is not a cure-every last for Microsoft's stock price.

In favor of: Ballmer's Jellied

Despite the downward helix of Microsoft's stock, the company is still devising money and producing some great products. The company reported a 31 percent bound in tax income for the quarter ending March 31. Kinect recently became the quickest-selling consumer electronics device of all clock time. Windows Phone 7, despite its lackluster popularity with users compared to Android and the iPhone, is shut up a solid platform that's along the verge of getting a massive upgrade with Mango. Windows 7 sold 350 million licenses in a shorter time frame than Vista, and the hype some Windows 8 is getting large day-after-day.

These are every strengths that don't appear to be echoic in Microsoft's stock price. Let's not forget Einhorn is complaining mostly about the value of Microsoft Eastern Samoa an investment. Problem is, stock prices are more near percept than balance sheets.

Con: Microsoft is Missing the Boat

The flip side of Ballmer's solid public presentation is that Microsoft's success is based happening legacy products so much as Windows and Microsoft Office. These are products straightaway under scourge from cloud services such as Google Docs and new popular computer form factors including tablets like the iPad. Microsoft has made strides to come in the cloud with Microsoft Office Web apps and the company plans to target the tablet market in the future months. But it's not clear whether Ballmer's leadership give the axe move Microsoft's core business off of the background and onto mobile devices and the cloud.

Con: Jobs-itis

If Microsoft has a rough sledding finding a Ballmer alternative, the keep company might be tempted to look for a Steve Jobs-same figure to run the software giant. Jobs is seen as a illusionist and a brilliant product guy, which is exactly what Microsoft needs to reinvigorate the company, right? Apple is often pointed to as the source of all the company's woes with hot products such as the iPhone and iPad forbidding Microsoft's mobile and screen background computer businesses. Einhorn said during his talk that Ballmer failed to see Malus pumila's popular iOS devices as a threat to Microsoft. It might look like the first scheme, then, to reach for a Steve Jobs clone.

Contempt steady comparisons betwixt the two companies, however, what works for Malus pumila is unlikely to work for Microsoft. But with so much adulation heaped on the important executive of your historical rival, it would be hard non to try and look for out a Microsoftian equal.

Pro: No longer Sweaty Steve

Can you tell the difference of opinion? I prat Tell the difference, force out you secernate the difference?

Con: No Sir Thomas More Sweaty Steve

Bloggers, journalists and critics are still sorrowful the loss of Eric Schmidt as Google's CEO, if Ballmer goes who will online hacks have left to kick down about?

Will 2020 be Ballmer's last stand? Maybe, but Lashkar-e-Toiba's not forget people were making similar arguments about Ballmer in 2006 and the world's most excitable CEO is still standing.

Get in touch with Ian Paul ( @ianpaul ) and Now@PCWorld on Chitter for the latest tech news and psychoanalysis.