Microsoft's new 'Windows + Devices' team could ignite significant hardware innovation

Microsoft employee with Surface Neo Source: Windows Central

Give-and-take broke terminal week that Microsoft combined its Windows and hardware teams nether one umbrella. This new "Windows + Devices" team is led by Panos Panay, who previously led Microsoft's hardware efforts as Principal Product Officer overseeing the standalone Devices group.

News of the teams' merger led many to speculate that Microsoft is set up to bring Surface and Windows evolution much more than in sync. While it'south probable we'll see a closer union between hardware and software every bit a result of this movement, it's also worth considering the business implications for Microsoft and its original equipment manufacturer (OEM) partners.

A natural evolution for Microsoft

Surface Pro X Source: Daniel Rubino/Windows Cardinal

Considering Microsoft has control of the evolution of Windows software and Surface hardware, 1 could reasonably assume the two teams have historically been in lock-pace with one some other. However, that hasn't e'er been the instance, with the Surface team building its devices around Windows. Breaking downwardly that barrier between teams, says Al Gillen, Group Vice President for software evolution and open source at research firm IDC, is a "natural evolution for Microsoft."

Combining both teams will help requite Microsoft'southward device concern a shot in the arm.

"The form factors of Windows products continue to evolve, and increasingly, the operating system and the devices information technology needs to support are evolving together" Gillen says. "Consider what is happening with Windows 10X."

With Windows 10X, Microsoft opted to build a version of Windows 10 designed specifically for dual-screen devices. The Surface Neo, due out after this twelvemonth, is Microsoft'due south flagship device for the dual-screen form factor. While, we'll have to await until it launches to become a total view of how Windows 10X and Neo will work together, information technology will serve as an example of how the hardware and software teams working closer together could serve the overall device experience.

Surface Laptop 3 13.5 Source: Windows Fundamental

For Jeff Lin, the Associate Managing director for consumer electronics at inquiry group IHS Markit, the motion also makes business organization sense for Microsoft. Combining both teams will assistance give Microsoft's device business a shot in the arm.

"Microsoft hopes to proceed [its] devices business, just its revenue and growth rate continuously fail to run into shareholder expectations," Lin says. "So, combining 2 of its large teams (Windows Feel and hardware teams) can help [the] device business grow continuously."

Microsoft's Surface business organization was up vi percent, reaching almost $two billion in it latest quarterly earnings written report. That was largely additional by the launch of a slate of new Surface devices final fall, including the innovative new Surface Pro X, but the Surface revenue stream is a drib in the bucket of Microsoft's total $36.nine billion in earnings for the quarter.

Beyond general growth for the devices concern, Lin sees an opportunity for Microsoft to offer a more than compelling package for its enterprise users. "Combining two big teams can help Microsoft sales to offer [a] total solution (Windows ten and devices) to their enterprise users."

A threat to PC partners?

XPS 13 2-in-1 Source: Windows Primal

Ane of the bigger questions to come out of this squad merger is how Microsoft's partners might react to the motion. There was some speculation that such a shift might upset PC makers, because developing Windows and Surface together could give Microsoft an unfair reward.

However, according to both Gillen and Lin, it'south unlikely we'll meet OEMs panic. "[It] is just natural for OEMs to get nervous when Microsoft does something that puts the visitor in a competitive position versus its OEM partners," Gillen says. "But ... this is erstwhile news in that Microsoft crossed the bridge of competing with its OEM partners years agone when it initially brought out the Microsoft Surface product line."

The new Windows + Devices squad should be a net positive for Microsoft on multiple fronts.

If the motility results in an enterprise push for Microsoft, Lin speculates it may result in PC makers hedging their bets. "Nosotros foresee that OEMs volition continue to expand cooperation with Google (Chromebook development) for reducing dependence on Microsoft," Lin says.

For Microsoft's part, Panos Panay emphasized that both Surface and OEM partners volition benefit from the Windows and Device artillery working as one team. In an internal email post-obit the motility, Panay said the new team will help Microsoft "deliver the best end user experiences from silicon through operating systems across all Microsoft apps and service connected devices (OEMs and Surface)."

We reached out to Microsoft for further information on the motion but it did not reply to a request for comment.

PC software and hardware are better together

Surface Neo Source: Windows Central

For Panay, it'due south the marriage of hardware and software that appears to be the big describe of his new role. "Designing hardware and software together will enable usa to practise a better job on our long term Windows bets (dual screen, silicon diverseness, connectivity, app platform, etc.)," Panay wrote in his email to employees last week.

The new Windows + Devices team should exist a net positive for Microsoft on multiple fronts. Non only is it likely to more effectively synchronize hardware and software, but information technology gives Microsoft some other style to make its operations more efficient as it experiments with new device categories, according to Gillen.

"This business is non one of the high-flyers for Microsoft, and is experiencing only linear growth, so Microsoft needs to operate it in an efficient manner," Gillen says. The recent internal merger is designed to practice just that.

An internet connection will soon be required when setting up Windows 11 Pro

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An internet connection will shortly exist required when setting upwardly Windows xi Pro

Microsoft has announced that after this year, users will be required to connect to the internet and sign-in with a Microsoft Account during the out of box setup experience on Windows eleven Pro. Microsoft has already been enforcing this requirement on Windows 11 Home since launch last October, and Windows xi Pro is now expected to follow suit shortly.