Cloud Native/NFV

Is Microsoft Planning Reorg Around Cloud?

Microsoft is planning a global sales reorganization, including job cuts, to intensify its focus on the cloud, according to reports.

The restructuring could be announced as early as next week, and will effect the Worldwide Commercial Business unit under Judson Althoff and Jean-Phillippe Courtois' global sales and marketing group, according to a Bloomberg report Friday.

"The shifts will be some of the most significant in the sales force in years and will also impact local marketing efforts in various countries," Bloomberg says.

Microsoft's sales force is trained to sell software on desktops and servers, but signing up cloud customers has become more important, Bloomberg said. Microsoft "wants to accelerate this switch to add more revenue and catch cloud market leader Amazon.com Inc.," Bloomberg says.

AWS has 57% cloud market share, compared with 34% for second-place Microsoft, 15% for Google and 8% for IBM, according to a recent report from Kleiner Perkins Caufield & Byers. AWS market share was flat year-over-year, while Microsoft's grew from 20% market share the previous year. (See Cloud Growth Spawns Worries, Mary Meeker Reports.)

The Puget Sound Business Journal reported Microsoft plans a company-wide reorganization around the cloud, to be announced July 5.

Microsoft said Thursday it is buying Cloudyn, a small Israeli company that helps enterprises control costs of running applications on Azure, as well as Amazon, Google and OpenStack clouds. (See Microsoft's Cloudyn Buy Boosts Multi-Cloud Strategy.)

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— Mitch Wagner Follow me on Twitter Visit my LinkedIn profile Visit my blog Friend me on Facebook Editor, Enterprise Cloud News

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kq4ym 7/11/2017 | 11:44:10 AM
Re: Focus As the second place runner in the cloud business Microsoft as noted will probably be looking to cut those sales jobs and concentrate on the bigger fish for cloud clients. As their "sales force is trained to sell software on desktops and servers, but signing up cloudcustomers has become more important," may very well be where they're headed for the next few years to increase their market share vs. AWS.
Mitch Wagner 7/7/2017 | 8:45:21 PM
Re: 2nd place anyway Microsoft has a depth of field in enterprise that Amazon lacks. 
Mitch Wagner 7/7/2017 | 2:44:46 PM
Re: Office 365 (or not) is still dominant.. mhhfive - That's a very good question. I wonder if younger employees are less likely to use Office, or if it's become a standard across all generations?
Joe Stanganelli 7/6/2017 | 2:24:23 PM
Re: Office 365 (or not) is still dominant.. @mhh: That assumption may be flawed. Don't forget all of the initiatives to get iPads into the classroom. And iPads offer all the major Microsoft Office applications -- including Excel.
Joe Stanganelli 7/6/2017 | 2:23:19 PM
Re: The metamorphisis @Phil: At least we don't have to go through a series of inserting, waiting, pulling out, and reinserting a series of a half dozen to a dozen floppy disks to install or upgrade something anymore!

(The kids have no idea what we're talking about.)
mhhfive 7/5/2017 | 1:02:02 PM
Office 365 (or not) is still dominant.. It's amazing to me that Office is still a dominant software package. It's really Excel that keeps Microsoft integrated into every company's IT network. But it's really surprising that such a relatively simple bit of software could become such a barrier to switching platforms. I have to wonder how Google Spreadsheets is doing relative to Excel in the cloud. I assume primary school kids are growing up with Google Apps on Chromebooks, but will that mean they'll grow up to use Google Apps when they hit the workforce? I'm skeptical. 
Phil_Britt 7/4/2017 | 9:41:47 PM
Re: The metamorphisis I remember those days. But any upgrades tended to be large, requiring new software. The cloud makes more sense, especially with the ongoing security threats. This goes for ancillary products, too. Went to Office 365 a few years ago. The only drawback is that sometimes I am far ahead of some of the companies that I work iwth.
Joe Stanganelli 7/1/2017 | 1:04:27 PM
Re: The metamorphisis @maryam: Heck, remember when your PC came preloaded with all of MIcrosoft's stuff and you only had the CD as a backup? ;)

Ahhh, the days before the antitrust actions.
Joe Stanganelli 7/1/2017 | 1:03:27 PM
2nd place anyway 34% ain't bad if their sales force hasn't even been particularly trained for -- or their organization optimized for -- cloud sales.

On the one hand, Microsoft could well give Amazon a huge run for its money.

On the other hand, Amazon is Amazon.

Compelling things to come out of Washington state, I suspect.
Susan Fourtané 6/30/2017 | 11:37:17 PM
Focus It makes sense to focus on the cloud. With strong cloud services Microsoft can better build all the rest, all of which need the cloud as well.
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