Microsoft CEO Nadella on What Needs to Stay and What Needs to Change at Microsoft

Satya Nadella, Microsoft, Code Conference

Microsoft CEO Satya Nadella outlined his vision for Microsoft in a detailed memo on Wednesday, his clearest statement yet on where he hopes to take the company.

While it builds on most of what the company has been doing in recent years, Nadella also outlined the need to change and promised more details would come later in the month.

“Over the course of July, the Senior Leadership Team and I will share more on the engineering and organization changes we believe are needed,” he said in a note to employees, which was also posted on Microsoft’s website.

The memo builds on the “cloud first, mobile first” strategy he outlined upon taking on the job as well as the themes he outlined during his appearance at the Code Conference.

It begins thematically, but gets rather concrete, with Nadella answering some key questions, including speculation over whether he might abandon Xbox and other consumer efforts.

“As a large company, I think it’s critical to define the core, but it’s important to make smart choices on other businesses in which we can have fundamental impact and success,” Nadella wrote. “The single biggest digital life category, measured in both time and money spent, in a mobile-first world is gaming. We are fortunate to have Xbox in our family to go after this opportunity with unique and bold innovation. Microsoft will continue to vigorously innovate and delight gamers with Xbox.”

Nadella also talks about needing to shake up things internally.

“Nothing is off the table in how we think about shifting our culture to deliver on this core strategy,” he said. “Organizations 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. New skills will be built. New ideas will be heard. New hires will be made. Processes will be simplified.”


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