The hottest Microsoft board of directors is consid

2022-08-21
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The Microsoft board of directors is considering restructuring the sales team to accelerate the transformation of cloud computing

on June 6, according to reports of poor activity in foreign media, the Microsoft board of directors is increasingly worried that the company's traditional software business accounts for the vast majority of revenue and will disappear in the next few years. Chairman John Thompson is promoting the company's more active transformation to the cloud computing model

Thompson said that he and the board of directors were satisfied with the CEO Satya NADELLA's efforts to generate revenue through Internet transmitted software and services, but hoped to accelerate this transformation. The measures considered by Microsoft's board of directors include increasing investment, reorganizing the sales team, managing partnerships in different ways, and accelerating the transformation to cloud computing

for Microsoft to resist the decline of traditional software sales, the transformation to cloud computing is not only icing on the cake, but also crucial. Thompson said that the oil change cycle and maintenance interval of car engines can be extended by 50%. Some people know for sure that the sales of traditional software are ingenious, and 3D printing is shrinking. However, in the medium term, some of our data statistics and analysis businesses will face continuous pressure, which is inevitable

the board's concern stems from experience. Thompson said that chuck noski, the company's director and former CFO of at t, had witnessed how at t's fixed line business was shrinking rapidly. Now, Northey and Thompson are worried about whether Microsoft will repeat the mistakes of at t

the scale is small, but it is growing.

NADELLA once said that the revenue of Microsoft's commercial cloud computing business will reach $20billion in fiscal 2018. Thompson said that the cloud computing business will further develop, and Microsoft should have been involved in the cloud computing business earlier. Business cloud computing showed impressive growth. Azure's quarterly sales increased by more than 100%, but in Microsoft's revenue of $93.6 billion in the previous fiscal year, the contribution of cloud computing business was only $5.8 billion

Thompson said that the board of directors was reviewing whether Microsoft's investment in the cloud computing business was sufficient. This is not only about developing better technologies, but also about the way Microsoft sells these products and the strategy of choosing product distribution partners. He said that persuading partners to develop compatible applications is the advantage of Amazon, the leader in the cloud computing market

Thompson did not elaborate on what changes the company would make in terms of sales and cooperation, but he said that Microsoft might need to reconsider these organizations

cloud computing cooperation

analysts pointed out that Microsoft should seek to cooperate with more partners developing software for azure and with consultants installing and managing services for customers. Lydia Leong, an analyst at Gartner, a market research company, said that Microsoft was already doing such work, but it lagged behind Amazon Web services

Matt McIlwain, managing director of madrona venture partners, an investment company, said that Microsoft sales representatives need to increase their experience in cloud computing transactions and understand more about the differences between cloud computing transactions and traditional software transactions. They have not done enough to turn to the cloud computing model and still need to continue their efforts

Microsoft did not comment on the company's cloud computing strategy, or changes in sales and cooperation. Nosky did not comment

one time purchase

the recent financial report shows that Microsoft still relies heavily on traditional software needs, and its revenue is affected by traditional software business. Chief financial officer amyhood said in April that the sluggish trend of traditional software sales may continue

Microsoft's two largest cloud computing businesses are azure based Internet services, which lag behind Amazon but lead Google and IBM, and office365 Microsoft's main traditional software products include windows server, office and SQL database

for cloud computing transactions, the revenue will be allocated throughout the contract period, rather than a one-time significant increase. Affected by the cost of building and maintaining data centers, the profit margin of cloud computing business is quite low. Microsoft's gross profit margin fell from 80% in FY2010 to 65% in fy2015

anuragrana, an analyst at Bloomberg intelligence, said that the cloud computing business is growing rapidly, but the gross profit margin is far lower than the past core products

Thompson said that for Microsoft, pressure is a good thing. Pressure can bring change. When there is pressure, people will have different ideas. Microsoft is now facing great pressure

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