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CLSA's Managing Director Ed Maguire Sees Good Things For Microsoft (MSFT)

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CLSA's Managing Director Ed Maguire Sees Good Things For Microsoft MSFT

CLSA managing director and senior analyst Ed Maguire was interviewed on CNBC's Squawk Box Tuesday morning where he discussed the future of Microsoft (NASDAQ: MSFT).

Many expected Microsoft to transition into a device and service-based company, restructuring from a software company.

But, with the departure of Don Mattrick, former president of Microsoft's Interactive Entertainment Business to act as Zynga's (NASDAQ: ZNGA) CEO, there are concerns that the prowess of this transition will be hindered.

According to Maguire, the restructuring of Microsoft will be comprehensive, while Mattrick is free to workout his new opportunity.

"Microsoft does have a pretty deep bench," said Maguire.

"So I don't think this throws plans, ah, really of course."

He confirmed that Microsoft will be aligned with becoming a products and services company.

Related: SLIDESHOW: Apple Store vs. Microsoft Store

"It's really unclear how extensive this is going to be. I think it's likely we could see this result in a change in the way Microsoft actually reports their financials, their finical segments," said Maguire.

"I would expect that we could see a lot of the entertainment and consumer products and services lumped up into a single division and possibly separate the enterprise business as well, because that's where a lot of the economic strength has come from."

Maguire said that if Microsoft were to "better align marketing, sales, and development" to "reflect the realities of the market," then they would be likely to achieve margin improvements with real financial benefit.

"I think there's a lot of opportunity for margin expansion and more efficiencies," said Maguire.

 

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