The veteran tech giant Microsoft announced on Thursday the biggest company reorganization plan since CEO Satya Nadella took office in 2014. After splitting the Windows operating system into two newly established departments, the person in charge of the Windows product line will be leaving soon. .
The first new department will be the 'Experience and Equipment' business group, which will be led by Rajesh Jha, executive vice president of the Office office software business. The shell of the Windows operating system will be integrated into it. Surface hardware series will also be included. Nadella said that Windows will develop new features for new technologies such as new devices and artificial intelligence.
The second division is the 'Cloud and AI' business group, which will be led by Scott Guthrie, executive vice president of cloud computing and business group negative business operations. The core operating system platform for Windows will be integrated into it. , Convenient customers to build their own hardware, applications and services on this platform. The new business unit will oversee all Microsoft software products from the Azure cloud platform to the Internet of Things.
As the importance of the Windows operating system declines with the decline in sales of personal computers (PCs), this system cannot compete with the Google Android and Apple iOS operating systems on the mobile smartphone side. After the Windows business is split, Office and Windows is actually handed over to Jha, and former Terry Myerson, executive vice president of Windows business, will leave.
In addition, Jason Zander, who has been responsible for the Azure cloud computing business, will be promoted to executive vice president, but is still unable to enter the core decision-making layer. Harry Shum will continue to lead the Microsoft research team, but will be closer to the cloud business with Guthrie and Zander Cooperation to help add more artificial intelligence technologies to the Azure platform.
Panos Panay, the director of the Surface product line, will become the chief product officer and supervise the design and manufacture of hardware devices. HoloLens heads up and Alex Kipman, creator of Xbox Kinect sensors, will become the head of Microsoft's 'AI sensing and mixed reality' department.
The Financial Times commented that the restructuring not only changed the mandates of many engineers and leaders, but also strengthened the status of Jha and Guthrie at the core decision-making level of the company. In particular, Guthrie’s power was amplified. , also reflects Microsoft's double emphasis on the cloud business. By splitting the Windows operating system business, Nadella will lead Microsoft to accelerate the transition to cloud computing era.
After leading Microsoft to launch the prestigious Windows 95 computer operating system, Brad Silverberg, who later founded the venture capital fund, said that it takes courage to recognize the importance of Windows. Windows' thunder in the 1990s was so great that the US Department of Justice threatened to Demolition of Microsoft, believes that its abuse in the market dominance of PC operating systems to suppress competitors.
Former CEO Peter Ballmer, who had been at Microsoft for 13 years, was interviewed before his departure in late 2013. He said that the development of Windows Vista may be the biggest mistake in his job. The entire R&D team has to work on repairing Vista's flaws. There is no room for development. Potential products. This has caused Microsoft to miss out on the huge opportunities of smartphones and tablets. The market value has also shrunk by half in 13 years.
The Wall Street Journal cited Brad Reback, an analyst at brokerage Stifel, as saying that Microsoft is willing to shift its focus away from Windows. It not only proves the market's permanent transfer from personal computers to mobile devices and the cloud, but also shows that CEO Nadela is not a brilliant one. History is comfortable for people.
In the four years since he took over, Microsoft has become a leader in the global cloud computing industry. Azue is the second cloud infrastructure platform ranked second only to Amazon. Office 365 personal office software and Dynamics business software services built in the cloud are also growing rapidly. .
Wall Street information has mentioned that in the fourth quarter of last year, smart cloud business revenues such as Azure, Windows Server, and SQL Server increased by 15% to US$7.8 billion. The highly-received Azure quarterly revenue was US$7.08 billion, a sharp increase of 98%. Including Office. Productivity and business process revenue, including Dynamics and LinkedIn, increased by 25% to $8.95 billion. Windows revenue rose by only 2%.
Microsoft’s CEO Nadella reorganized the employee’s letter on Thursday to express that “One Microsoft” (the same Microsoft) that integrates the terminal experience will become a new development slogan. It needs to have in-depth understanding of customer’s unmet and unclear requirements. Accelerating innovation to upgrade services. He also said that the boundaries of internal organizations cannot be allowed to stop innovation. Therefore, a corporate culture with a 'growth mentality' is crucial.
After the announcement of restructuring news, Microsoft's share price rebounded and rebounded on Thursday. It rose by nearly 3% in intraday trading and eventually closed up 2.1% to a near-term high of $91.27. Facebook, Tesla, Google, Amazon and Apple are all tired this year. When it fell, Microsoft, a member of the 'FAAMNG' All-Star Team, achieved a cumulative increase of approximately 6.7%.