The Cloudcast

How Microsoft Evolved

Cloudcast Media

The evolution of Microsoft under Satya Nadella provides a blueprint for how to transition companies from one focus to another.  

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HOW MICROSOFT EVOLVED FROM A CLOSED SW COMPANY TO CLOUD COMPANY

  • 2001: $31B, 2007: $62B, 2014: $88B, 2019: $153B, 2022: $198B
  • 90+ acquisitions since 2014
  • Office 365, Gaming (XBox), GitHub, LinkedIn

HOW TO FOCUS ON CHANGES, ADDITIONS, AND SUBTRACTIONS

  • 2001: XBox, Office 365
  • 2008: Azure
  • 2017: Microsoft Teams
  • 2018: GitHub
  • Be patient: Many of Microsoft’s investments required 10+ years to grow
  • Buy new capabilities: Acquisitions
  • Break the limitations to expand markets: Move to cross-platform support (Office on MacOS, SQL on Linux, Linux in Aure, Bing with Google) - see Red Hat with RHEL, IBM with IBM Cloud or Mainframe, Cisco with SW+Hardware
  • Embrace new business models: SaaS services, pay-as-you-go Cloud services
  • Invest for the Future: Microsoft has caught up to Google in CAPEX spending

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