1 billion active Windows 10 devices in FY18 (=by June 2018)
USD20 billion annualised run rate in Commercial Cloud in FY18
(Stephen Parker, VP Market Research, rhipe)
29th April 2015, Satya Nadella makes bold and exciting statements about Microsoft direction for the coming year.
If you have any engagement with Microsoft then (as I have discussed previously) understanding where they are setting their priorities for the coming year is critical to an effective relationship. Each year Microsoft uses their Worldwide Partner Conference (WPC) to share this vision with their leading partners across 4 days of keynotes and detailed sessions.
However, in the months running up to WPC, key markers are laid down by senior executives, with the Microsoft Financial Analyst Briefing in April being an important indicator for the year ahead.
This year Satya Nadella called out the following two key “Ambitions”:
- 1 billion active Windows 10 devices in FY18 (= by June 2018)
- USD20 billion annualised run rate in commercial cloud in FY18 (=Azure, Office 365 etc)
Supported by the following key points
- His love for German philosophers (Nietzsche) – “Courage in the face of reality” paraphrased to “Courage in the face of opportunity”
- Reinforced existing message that “Our strategy today is to be a productivity and a platform company in this mobile-first, cloud-first world.”
- Confirmed that Microsoft are maintaining the business AND consumer focus based on 3 core ambitions:
- A “more-personal computing era”
- About “Reinventing productivity and business process.”
- “We want to be able to build that intelligent back end for the world’s applications.” – Building the intelligent cloud.
- A shift from “a transactional relationship” to “more of a lifetime value”
- The importance of the notion of a transition to “Windows as a service”. (He argued that “you could say Windows is already a service because of Windows update and the fact that 800+ million devices are served by Windows Update”
- Devices have not gone - “We are in a family of devices go beyond PCs……for us to have that family of devices, both first-party and third-party is very critical”.
- Office 365 is NOT a simple on-premises to cloud shift “now we are having real success with small businesses adopting what are some of the most sophisticated capabilities of Office 365…things that they never used”
- The same with Azure “…this is new growth, new ways for us to add value.”
- Shifting the market away from quarterly performance metrics “But really the question is, what is the power that you have for performance in the out years?”