Welcome to the Cloud Wars Minute — your daily news and commentary show, hosted by Cloud Wars Founder Bob Evans. Each episode provides insights and perspectives around the “reimagination machine” that is the Cloud.
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In this Cloud Wars Minute, Bob Evans discusses Microsoft’s top three priorities, based on comments that CEO Satya Nadella made on this week’s earnings call.
00:45 — A few days ago, Microsoft released its Q3 earnings results. On the earnings call, CEO Satya Nadella outlined the company’s top three priorities. “I think what he’s doing here is using these three priorities to shape the difference in not just what the company’s doing today, but what it’s going to do into the future.”
01:40 — At the very beginning of Nadella’s remarks, he set the stage. Four things came out of this, explains Bob. First, Microsoft Cloud revenue was $28.5 billion for the quarter, up 22%. Microsoft Cloud revenue accounts for 54% of the company’s total revenue.
02:40 — Based on these numbers, Nadella outlined three key priorities:
- Help customers use the breath of the Microsoft Cloud to get the most value from IT investments
- Invest to lead in the “AI wave” across all Microsoft solutions, expand the total addressable market (TAM) for AI
- Drive operational leverage, aligning costs with revenue
03:50 — Microsoft, one of the most powerful and influential companies, is trying to find its own ways to invest, focus on customers, and double down on internal operating efficiencies. “I think that’s a business model that any business leader can take forward here,” says Bob.