Microsoft CEO Satya Nadella outlines company's future direction

Rebecca Lambert
Rebecca Lambert
By Rebecca Lambert on 11 July 2014
Microsoft CEO Satya Nadella outlines company's future direction

Microsoft CEO Satya Nadella has hinted at a significant organisation-wide shake-up in his latest e-mail addressed to employees. 

The e-mail – titled ‘Starting FY15 - Bold Ambition & Our Core’ – explains to employees that throughout July they will focus on synthesising the company’s strategic direction and find out more about the “fundamental cultural changes required to deliver on it.” Top of Nadella’s agenda is redefining the company’s ‘core,’ which will see Microsoft move away from former CEO Steve Ballmer’s ‘devices and services’ strategy, and instead focus on becoming a productivity and platform company.

“While the devices and services description was helpful in starting our transformation, we now need to hone in on our unique strategy,” said Nadella. “At our core, Microsoft is the productivity and platform company for the mobile-first and cloud-first world. We will reinvent productivity to empower every person and every organisation on the planet to do more and achieve more.”

To execute this productivity and platform vision, Nadella explains that Microsoft’s “cloud OS infrastructure, device OS and first-party hardware will all build around this core focus and enable broad ecosystems.” As a result, the company will continue to evolve popular productivity products such as Skype, OneDrive, OneNote, Outlook, Word, Excel, PowerPoint, Bing and Dynamics, and the cloud OS will remain at the centre of all of its product offerings. The company will also continue to build its own hardware. “We’ll develop new categories like we did with Surface,” said Nadella. “It also means we will responsibly make the market for Windows Phone, which is our goal with the Nokia devices and services acquisition.”

Microsoft product and engineering teams look likely to change too. “Nothing is off the table in how we think about shifting our culture to deliver on this core strategy,” he said. “Organisations will change. Mergers and acquisitions will occur. Job responsibilities will evolve. New partnerships will be formed. Tired traditions will be questioned. Our priorities will be adjusted.” Every team has been encouraged to “simplify and move faster, more efficiently.”

This e-mail comes out just days before Microsoft is due to announce its latest financial results and gather employees for MGX and //oneweek where they will learn about the company’s FY15 strategy. Next week, the company will also be holding its annual Worldwide Partner Conference. OnWindows will be reporting from the event, so check back soon for all the latest announcements. 



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