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Microsoft CEO Satya Nadella: Celebrating $1 trillion market cap would be ‘the beginning of the end’

Underneath Satya Nadella, Microsoft has returned to the tech elite, punctuated by the firm hitting a monetary milestone of a $1 trillion market capitalization for the first time. Nevertheless, Nadella isn’t reveling in the information; in truth he would be “disgusted if someone ever celebrated our market cap.”

These feedback come from a cover story in Bloomberg Business Week about how Microsoft has rebounded below Nadella from a nadir level marked by failures of key initiatives and cultural points. Nadella has transitioned the firm away from some of its legacy companies to focus totally on cloud computing and its boring, however worthwhile mission of serving to corporations work extra effectively.

Microsoft’s cloud division sits squarely in the quantity two place, trailing incumbent chief Amazon Internet Companies. Microsoft has develop into a touchdown spot for retailers equivalent to Kroger and Walmart who don’t wish to retailer their knowledge on Amazon’s servers whereas additionally competing with the tech big.

The hassle has put Microsoft on robust monetary footing. Its inventory has climbed 35 % in the final yr, and it at present holds the title of the nation’s most-valuable firm, beating out tech giants Amazon and Apple. Nevertheless, Nadella advised Bloomberg that the market cap milestones are “not significant” and any celebration of it would mark “the beginning of the finish.”

Listed here are just a few different fascinating tidbits from the interview with Nadella:

De-emphasizing Home windows: It began subtly, as one former government put it, with Nadella merely omitting “Home windows” from sentences. And his first e-mail to staff as CEO ran greater than 1,000 phrases with no single point out of Home windows.

Home windows continues to be the product most synonymous with Microsoft, and is on greater than 800 million devices. However final yr, in a major reorganization, Microsoft blew up its Home windows division, splitting it throughout the Azure and Workplace groups, an indication of the firm’s priorities for the future.

Microsoft returns to its uncool roots: Bloomberg notes that below earlier CEO Steve Ballmer “Microsoft was chasing an attractive, Apple-like model of itself, and principally failing. For each iPod, there was a Zune; for each iPad, a Floor pill; for each iOS system, a Home windows Telephone.”

Nadella famously wrote off Microsoft’s smartphone division and wound down the Home windows Telephone working system. As a substitute, the cellular focus has shifted to constructing apps and companies that work nicely on each Android and iOS.

There’s been loads of discuss Microsoft being cool once more, however that’s not what the firm goals for. As the firm’s CTO Kevin Scott told GeekWire final yr: “Our job is to make different folks cool .We don’t must be cool ourselves.”

Tradition adjustments, however points persist: Re-shaping firm tradition has develop into an necessary half of Nadella’s tenure, with a aim of wiping out the infighting that has been an indicator of the firm’s previous. All indicators point out that this effort has been largely profitable and performed a job in turning the firm round.

Nevertheless, in current months, it’s develop into clear that Microsoft nonetheless has a methods to go. A gaggle of feminine staff just lately described experiences of sexual harassment and discrimination at the firm in a thread that got the attention of senior management. Final month, Nadella outlined a series of HR changes meant to rectify points described by the staff.

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