In what he has described as a measure to strengthen the company, Satya Nadella, the Chief Executive Officer for Microsoft Corporation (NASDAQ:MSFT) has unveiled some reorganization within the company. The changes include the combination of divisions, a move expected to put the company at a higher level of competition. The reorganization will be placing Microsoft’s focus squarely on cloud technology and will also touch on devices and software for businesses.
As many are likely to view it, the reorganization is not necessarily a surprise. According to a former Microsoft employee Ed Anderson, it is more of an acknowledgment of a shift, which has been happening over the years.
The future of Windows seems bright and full of innovation
Reorganizations are very common given that their main focus is usually to give assurance to the stakeholders and the shareholders. The primary driver for Microsoft going forward is to fundamentally elevate cloud. Apparently, the restructuring of Microsoft comes four years since Nadella took over the company’s leadership.
Nonetheless, the exiting Microsoft executive Terry Myerson, who has been in the industry for about 21years has been at the forefront of significant cloud-computing initiatives. As at today, Windows has largely become a cloud subscription product. Having gone through an evolution of the software.
According to an analyst at Sanford C. Bernstein, Mark Moerdler, the changes will not only benefit Windows but they are also likely to decrease duplication of engineering efforts. This will in return help the company save money. On the other hand, the Windows team has a goal of building laptops and tablets, which will appeal more to the users of Microsoft’s applications.
The company’s return to the upper echelon of tech giants
Expectations are that Nadella’s unrelenting focus will transform the company’s legacy for the better and particularly its software business. The push comes at a time when every tech giant is seeking transformation as they settle into their visions of the future.
It is worth noting that under his watch, Microsoft has remained relevant while at the same time boosting sales. There are speculations that revenue will go up to 11 percent in this fiscal year rising from 5 percent in 2017.