Ballmer: IT has opportunities from economic recovery

A focus on productivity and innovation will drive demand for IT

Growth will have to come from higher productivity and innovation when the economy begins to recover, Microsoft CEO Steve Ballmer told developers gathered Wednesday in Hyderabad for the company's India edition of the Tech Ed conference.

The IT industry will have a starring role to play in that recovery as customers focus on improving productivity and innovation, Ballmer said in his keynote address, which was webcast.

A lot of the productivity growth in businesses comes from IT, Ballmer said. IT also continues to innovate and those innovations are needed by companies in other industries as well, he added.

The global economy is getting "reset" in a "once in a lifetime" type of economic change, according to Ballmer. Businesses and consumers were borrowing too much money, using that credit to fund capital expenditure.

IT accounted for 50 percent of capital expenditure in the U.S., he said, and consumers borrowed money against their homes to pay for electronics such as PCs and flat-panel displays among other things, he added.

"So we get, if you will, some air coming out of the economy, and the economy is resetting," Ballmer said.

Microsoft announced in January that it would cut 5,000 jobs worldwide. The company may have to revise that plan if the economic situation in the U.S. dramatically worsens, Ballmer told reporters in Mumbai on Tuesday.

Ballmer also dismissed rumors that the company plans to acquire SAP. Speculation in this connection was fueled by Microsoft's move on Monday to raise US$3.75 billion through a debt offering.

Microsoft will continue to invest in new products and technologies, including cloud computing, despite the recession, Ballmer said at Tech Ed.

The company also continues to invest in search and expects that there will be more innovation in search in the next 10 years than in the last 10 years, Ballmer said.

The user interface for search has not changed and a current peculiarity of search is that users have to enter fewer search terms for more accurate results, he added.

Search needs to become more semantic and understand what users want to search for, according to Ballmer.

"The guy who is not the market leader has a lot more permission to shake things up," he said, referring to Microsoft and search, without talking about specific plans.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags economyMicrosoftsteve ballmer

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?