"Fantastic devices and services for end users will drive our enterprise businesses forward given the increasing influence employees have in the technology they use at work a trend commonly referred to as the Consumerization of IT," he says in the letter.

All of this is where Microsoft has been headed and where it needs to go, says Jim McGregor, a principal analyst with Tirias Research, particularly Internet-based services. "All need to move to the cloud," he says, as the company is doing with Office 365.

The need to create its own devices is not so clear, McGregor says, and might even be a risk. Historically vendors who tried to make everything from silicon to operating system to applications to devices failed. , with the and , has managed to make the model succeed wildly, but not by the excellence of the individual pieces, he says. "Apple may not be the very best at every one of those, but when you put it all together, you get the best solution," he says.

Microsoft is taking a run at doing that but it may take years since it is not likely to get everything right the first time. "It can be years but not a decade," McGregor says, but so long as the company remains committed to the devices and services model and shows improvement, it can succeed, he says.

Risky or not, even if the device effort fails, Microsoft is big enough and has enough resources to absorb the failure, he says.