When your tech is dying, Microsoft has a new solution to help you survive the next IT crisis
Microsoft’s software and hardware business has been struggling for some time, as the company struggles to make inroads in cloud computing and to attract developers and investors.
Now the company has announced a new program aimed at addressing some of those challenges, announcing plans for an expansion of its Tech Support and Audio Technica LPs60xBT business.
In an earnings call with analysts, Microsoft Chief Financial Officer Paul Allen said the new plan would be focused on two areas: “The digital technology businesses” and the “Audio Technica LP60xBTS business.”
The new Tech Support program will be focused specifically on the tech-centric audio business, said Allen, who added that the goal is to create a more robust business for the tech business by focusing on the areas of software and audio technology.
The new program will focus on the technology-centric business.
Microsoft CEO Satya Nadella told analysts on Tuesday that the company was targeting to grow the company’s tech-related business by 30 percent over the next five years, to $200 billion.
That would put it well ahead of Google, Amazon, and Apple, all of which have had larger revenue growth rates in the last few years.
In addition to the new Tech support program, Microsoft is expanding its audio business.
The company is buying a record label, SoundScan, which will be headed up by Microsoft cofounder Paul Allen.
Allen said the record label is expected to be available in the first quarter of next year, with a goal to have it up and running by the end of the year.
Allen told analysts that Microsoft has “the best-positioned record labels in the industry to support Microsoft’s digital-audio strategy,” saying that the labels would be able to offer high-quality digital recordings for $50 to $100 a pop.
He also said that Microsoft’s acquisition of SoundScan and its commitment to a robust digital audio business are “a major step in the right direction.”
Allen also said the company is investing heavily in the audio side of the company, adding that Microsoft had $1 billion invested in audio equipment.
He also said Microsoft is “making significant investments” in the video business.
While Microsoft’s audio business has seen rapid growth over the past few years, it’s not the only business Microsoft is focusing on this year.
Microsoft also announced plans for a new business focused on video content, and a new cloud-based video streaming platform called Video On Demand, which is aimed at making its online video offerings easier to access.
Microsoft’s strategy for digital audio has been controversial, but Allen said that while the company would continue to invest in the technology, it would also “focus more and more on our audio business.”