A fascinating glimpse from Ben Thompson into how a change in management at Microsoft led to a change in priorities, organisation and culture.
The end of Windows
That wasn’t the only news that week: Microsoft also renamed its cloud service from Windows Azure to Microsoft Azure. The name change was an obvious one — by then customers could already run a whole host of non-Windows related software, including Linux — but the symbolism tied in perfectly with the Office on iPad announcement: Windows wouldn’t be forced onto Microsoft’s future. […]
That summer Nadella undertook his first reorganization, separating the company into three divisions: Cloud and Enterprise, Applications and Services, and Windows and Devices. … I believe this reorganization was the turning point: not only were the two teams Nadella announced last week basically formed at this time, but more importantly, Windows was left to fend for itself.
Whilst it seems an obvious move — and the article notes the company’s rising stock price since the new CEO took over — it ends on a cautionary note.
This, then, is Nadella’s next challenge: to understand that Windows is not and will not drive future growth is one thing; identifying future drivers of said growth is another. Even in its division Windows remains the best thing Microsoft has going — it had such a powerful hold on Microsoft’s culture precisely because it was so successful.