Microsoft 2.5: A new series for the people who shape the future of the company

Almost 20 years ago (!), in 2007, I published my first and only book: Microsoft 2.0. It focused on the changes I expected from the company in the “Post-Gates” era. What will stay the same and what might be different once founder and CEO Bill Gates is out of the building?

CEO Satya Nadella has not left the company (yet). But there’s no doubt that Microsoft and its work have improved a lot in the last year or two. I’m not quite ready to christen this era Microsoft 3.0, although Nadella handed the reins of Microsoft’s leading commercial business to Judson Althoff about a year ago.

That decision led Nadella to move into a “founder mode” role, allowing him to focus less on the day-to-day work of running the business. (Microsoft historians may recall that Gates made a similar move back in 2000 when he became Microsoft’s chief software architect.)

While it may not yet be Microsoft 3.0 time, we may arguably be in the “Microsoft 2.5” era. Windows and Office are still around and still play a big role. Microsoft develops and sells developer tools and databases. But there’s no doubt that the cloud and all things AI are at the top of the agenda right now.

I’m starting a thread here GeekWire that will focus on what is important to Microsoft and, by extension, to its customers, partners, investors, and employees these days. Who are some of the people who shape and lead the company? What are their current opportunities and challenges?

Over the next few weeks, I’ll be profiling various Microsoft employees working on Microsoft’s ongoing evolution. Some are veterans of the company; others are newcomers. I’ll be speaking with senior executives from Microsoft Security, Copilot, Windows + Devices, Xbox, GitHub, and more.

I like their strategies for Microsoft’s core products and technologies and how they plan to try to turn Microsoft’s vision of excellence into reality. What are their teams made of? What do they see as their biggest challenges and opportunities? And where did they see technology in their areas?

I feel like many of us who have been tracking big tech companies (myself included) have fallen into the trap of assuming that everything a company does is due to AI. Layoffs? AI is to blame. Price increase? It’s all because of AI. Changing marketing strategies? Connect to AI…

But on further reflection, I believe Microsoft’s strategy is more nuanced than “AI or bust.” There is no doubt that Microsoft’s AI ambitions are shaping goals and strategies. But Microsoft, as a very business-oriented organization, cannot simply stop supporting products that are not built from the ground up with AI (as much as they would like to). And it can’t leave behind customers who aren’t 100% on their AI journey.

Combine those business setbacks with less popular consumer decisions, such as laying off 3,200 people in the gaming unit, and Microsoft’s approach to turning the ship around looks pretty complicated.

Our Microsoft 2.5 series starts on Thursday. Stay tuned.