alt Hacker NewsI recently had dinner in Bellevue with an individual who holds a relatively senior position within Microsoft’s executive leadership. During our conversation, she emphasized repeatedly that Microsoft does not primarily view its offerings as consumer products. According to her, the company’s leadership is strongly focused on B2B strategy, with revenue growth driven mainly by Azure, AI, and enterprise solutions. Her perspective was that consumer-facing products are not the primary revenue drivers and, therefore, are not central to executive priorities. While this may not be surprising to some, what stood out to me was how emphatically she underscored that the company’s strategic focus is squarely on enterprise customers rather than end users.
That said, this business model has historically proven effective for companies such as IBM. Microsoft allocates its resources toward segments that offer meaningful revenue growth.
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I recently saw this comment. You made it a few weeks ago, copy and paste identical.
This is actually true though. If you look at the revenue breakdown for Microsoft, windows is relatively small. It's Azure and Office that make up the lions share. Those are also the growth sectors. No matter how good you make Windows, you won't sell more licenses because everyone who wants a PC already has one. The only thing they need to do is prevent people moving to Mac, which historically hasn't been a huge risk.
Just FYI, this is the same as when I left Microsoft 20 years ago.
This has been the case for 15-20 years at least. It’s only now that the horrible experience for regular users is so obvious compared to Linux becoming quite good, and Mac OS ranging from fine to meh.
The continual recall/ai push from Microsoft has not helped at all and is pretty gross. There is a way to do a “recall” style thing that some folks will really want if they can trust it. The msft approach has been the opposite of that.
This is a fantastic reason to ditch Windows.
Windows used to be built for the user. Now, Microsoft builds it for themselves, as a way to help hardware partners sell hardware which includes a windows license.
So if Microsoft makes Windows for their own benefit, and not for the users benefit, I see no reason to use it at all. I don’t like games that much.
MacOS has gone downhill in a hurry but it’s still very good. Far better than Windows for me in every way.
This sounds exactly like how IBM sounded 50 years ago, before Microsoft disrupted them.
I've seen almost this exact comment before, have you shared this anecdote before?
the company’s strategic focus is squarely on enterprise customers rather than end users
Yet it was the end users that forced enterprise to embrace the iPhone, not the other way around.
If her vision was the only driver, we'd still be rocking Blackberries.
Windows' value is as a funnel to the Microsoft platform. Starving that funnel of attention might not have an immediate effect, but it's a slow death spiral for the company because it cannibalizes their long-term mind share. The 10-year-olds today who grow up using Chromebooks in school, Macbooks in college, and iPhones/Android phones in their daily lives, will end up investing in Google and Apple products as a working adult at home or at the office. The one remaining moat that Windows has over other operating systems is games and old software, but with Valve hard at work to get Steam games working on Linux, this last bastion of Microsoft's consumer presence is under attack as well.