Microsoft’s potential ‘cloud cut-out’

A Wall Street Journal (WSJ) report states that Microsoft has reorganised its global sales force to focus on selling cloud services rather than standalone pieces of software.

WSJ reported that since CEO Steve Ballmer resigned and Satya Nadella took his place in 2014, she has performed a series of structural changes within the company, which could lead to thousands of jobs to be cut as a result of the ‘sales shuffle’.

Since Nadella took control, the company has focused on selling software subscriptions to businesses, as well as building its Azure cloud-computing platform.

Growing cloud division

The Verge noted that for Windows and Office, this is ‘part of a steady shift away from one-time software licenses’; also stating that Microsoft is still catching up against Amazon, trying to grow cloud division and stave off competition from Google.

Microsoft says it will not focus on small to medium sized businesses and big enterprise customers: “Sales reorganisation is designed to align the right resources for the right customer at the right time,” said Microsoft’s Executive Vice President of Worldwide Commercial Business, Judson Althoff.

WSJ stated that layoffs will likely occur in offices around the globe.

Written by Leah Alger

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