Microsoft's decision to cut 7,800 jobs yesterday sent ripples out through the tech world, and many are wondering what the future holds for one of the biggest software companies in the world.
Analysts agree that this way, the company wants to focus all of its energy on the upcoming Windows 10 release, which would see apps working across desktop, tablets and phones with little to no tweaking.
Its hopes lie in the idea that a good Windows release would encourage people to use it more, which would in turn lead to more apps for the mobile version. More apps for the mobile version would mean bigger sales in the hardware department.
"This mobile strategy going forward is the best they could possibly do," said Forrester analyst J.P. Gownder.
On the other hand, some analysts believe the layoffs are Microsoft’s way of admitting buying Nokia was a mistake, and that the company is now looking for a way out.
Jack Gold, principal analyst at J. Gold Associates, feels that way, saying the acquisition of Nokia was “a mistake to begin with”.
"A monumental mistake. Microsoft had no business being in the cut-throat, low-margin phone business. Who's making money in phones besides Apple?"
Microsoft’s upcoming operating system is set for release on July 29 2015. The company said it would be the last Windows release, and the first one to be more of a service, and less of a product. It will bring many innovations to the OS, including a new browser, and Cortana, the virtual assistant.