ANALYSIS
Microsoft turns to the cloud as it swings the axe
Firm plans to cut 18,000 jobs, but promises to make it easier for resllers to sell to SMBs Hints at Windows changes
by Dominic Sacco IT WASN’T HARD to guess the words on Microsoft executives’ lips at the company’s 2014 Worldwide Partner Conference in July. Microsoft CEO Satya
Nadella has been banging on about the company’s idea of a ‘mobile-first, cloud-first world’ since he came on board half a year ago, but this was his first time hosting the annual conference for partners. For many it was the first time they could hear about Microsoft’s new vision from the horse’s mouth. Or more specifically, hear him say the phrase ‘mobile-first, cloud-first’ nine times throughout his talk. Nadella also showed off Skype’s real-time language translator, which, despite some minor hiccups, impressed the crowd. But before his big moment hosting the final keynote of the show, Microsoft’s Worldwide Partner Group corporate VP Phil Sorgen had a more direct message for partners – one that outlined changes which will ‘make it easier’ for partners to work with Microsoft and sell their products (something he mentioned five times). We all know Microsoft has a big focus on the cloud, with products and services like Office 365, SkyDrive and the Azure platform (Xbox players can even store their saved games in the cloud), but it hasn’t always been as easy as it could be for the smaller reseller to sell its products. Microsoft is hoping to change this in a number of ways. Firstly, it’s integrating the cloud into the Microsoft Partner Network, with three new cloud-focused offerings based on performance for Office 365 and Microsoft Azure: one for selling to
8 | PCR August 2014
Microsoft’s CEO Satya Nadella took the reigns at the 2014 Worldwide Partner Conference, revealing the company’s plans for the future
SMBs, one for enterprise and one for those delivering infrastructure, PaaS and SaaS solutions on Microsoft Azure. It’s helping partners migrate from the retiring Cloud Accelerate, Cloud Deployment and Azure Circle via an online Azure Machine Learning University, and it’s waiving the first-year fee for Silver cloud competencies. Interestingly, a new Microsoft Cloud Solutions Provider program will allow partners to become ‘the only contact’ for their customers’ needs, including billing, support and the ability to sell their own products and services, as well as license and manage Microsoft products. “These announcements take steps to make it more valuable, less expensive and easier for partners to do business with Microsoft and together we have a unique opportunity to help customers embrace the mobile-first, cloud first-world.” Sorgen said.
Microsoft announced several partner tie-ups, including a collaboration with EMC and Equinix for a hybrid cloud solution and other deals with Cisco, Intel and NetApp.
“Windows as we know it has to change. We are the company that will build productivity experiences and platforms for the mobile-first, cloud-first world.”
Satya Nadella, Microsoft
‘DIFFICULT STEPS’ Unfortunately, Microsoft’s grand cloud strategy is not without its sacrifices. It is cutting up to 18,000 jobs globally as it integrates the Nokia Devices and Services teams into Microsoft. It’s the biggest job axing in Microsoft’s history, with the 18,000 representing around one sixth of Microsoft’s 127,000 global workforce. CEO Nadella described the restructuring as one of several “difficult steps” Microsoft will have to make in its cloud journey. “We will go through this process in the most thoughtful and transparent way possible. It’s also important to note that while we are eliminating roles in some areas, we are adding roles in certain areas,” he said.
Due to the changes, the company expects to pay out up to $800 million for severance and related costs. The news follows rumours suggesting Microsoft’s next Windows OS will be cloud- based, ditch activation keys in favour of a new online distribution method (which will bind a licence to the user’s individual PC and activate when they connect to the online Microsoft Store). Supposed desktop images of ‘Windows 9 Threshold’ also recently hit the net.
Nadella stated: “Windows as we know it has to change. We are the company that will build productivity experiences and platforms for the mobile-first, cloud- first world. We’re going to empower every individual and every organisation to do more and achieve more. That’s our singular mission. That is something that’s unique to us. That’s in our core, that’s in our soul, and that’s what we’re going to go do.”
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