Do Microsoft Earnings Call for Co-CEOs?

Call it the Tale of Two Companies. Microsoft announced revenue of $18.53 billion for the quarter ended September 30, 2013. Net income was $5.24 billion. But how Microsoft drove those numbers gives the appearance of two companies operating inside one brand, with one far outshining the other.

Specifically, commercial revenue grew 10 percent to $11.2 billion while devices and consumer revenue grew 4 percent to $7.46 billion. Windows OEM revenue declined 7 percent on the consumer side while Surface revenue growth was a paltry $400 million. Microsoft is still painting a pretty picture, but is it time to change the paradigm of the C suite to balance the companyEUs growth?

EUOur devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers,EU said Steve Ballmer, chief executive officer at Microsoft. EUOur new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices.EU

The Nature of the Beast

We caught up with Rob Enderle, principal analyst at The Enderle Group, to get his take on the bifurcation of Microsoft and what the company should consider as it seeks a new CEO. He told us with a blended company like Microsoft there are going to be units that perform and units that donEUt.

EUMicrosoft is one of the few companies that tries to do both enterprise and consumer business and virtually nobody is doing both well. ItEUs a black and white choice,EU Enderle said. EUYou pick one and focus on it and whichever one you arenEUt focusing on performs poorly.EU

As Enderle sees it, fixing that problem isnEUt just a Microsoft issue -- it's...

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