Microsoft broke up the Windows operations division and carried out a massive restructuring of the company. Microsoft's Windows era is officially history. In a March 29 email to employees, Microsoft CEO Satya Nadella announced Microsoft's division restructuring, with cloud computing and advanced artificial intelligence becoming Microsoft's central tasks.
According to a report by the New York Times on March 29, Microsoft will disband the Windows engineering team, and the leader of the Windows business team will also leave.
In the above report, analysts said that some of the disbanded Windows engineer team will be integrated into Microsoft cloud software, and other engineers will develop consumer applications, including software in smartphones, tablets, PCs and game consoles.
Terry Myerson, executive vice president of Microsoft's Windows and devices division, will leave his post, having worked at Microsoft for 21 years. In another email to employees, Myerson said he supported Nadella's corporate reforms, "I believe these changes are very beneficial to Microsoft." ”
Analysts said the move is part of Microsoft's restructuring to accelerate Microsoft's efforts in newer, faster-growing businesses, such as cloud computing and data-backed artificial intelligence. Since Nadella became CEO of Microsoft in 2014, he has been paving the way for these reforms.
Nadella said in an email that the entire organizational reform "allows us to keep up with the pace of opportunity."
Gartner analyst and former Microsoft employee Ed Anderson said in an interview with CNBC that Microsoft's current basic platform is no longer Windows, but cloud business. Anderson also said that Microsoft's restructuring "doubled down on using the cloud as Microsoft's foundational platform." ”
The New York Times report commented that in the current Internet age, cloud services from Amazon, Microsoft and Google have been equated with Windows systems in the era of personal computer operating systems. Software developers write new programs that run on cloud services, just as they did when they wrote programs running on the Windows operating system. Microsoft has also successfully rewritten its Office products into web-based applications running in the cloud.
According to CNBC on March 29, Nadella has been talking about a "cloud-first" strategy since he succeeded Steve Ballmer as Microsoft's CEO in 2014. This restructuring allows Microsoft to focus more on cloud services globally. In the current public cloud market, Microsoft Cloud Azure is the second largest company after Amazon Web Services. According to a report by Synergy Research Group on February 2, Amazon accounted for 34% of cloud infrastructure services and Microsoft Azure accounted for 13% in the fourth quarter of 2017, higher than Google and IBM.
: Synergy Research Group's February 2 report ranks the market share of cloud infrastructure service providers worldwide. Among them, Amazon ranked first and Microsoft ranked second.
Previously, in July 2017, Microsoft announced a similar restructuring of its global sales department, which involved a large number of layoffs, and foreign media reported that thousands of jobs would be laid off. The restructuring is intended to allow more technical salespeople to sell cloud services to consumers, and is also a measure to strengthen the growth of its cloud business.
So far, feedback from current Microsoft employees about Nadella's major restructuring of Microsoft has been very positive. Garnter analyst Ed Anderson believes that Windows can now become an important part of Microsoft's cloud services, and it will be more closely integrated with software in products such as Microsoft 365.
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