Microsoft Corporation participated in the JPMorgan Technology, Media and Telecommunications Conference which took place last month. Dave O’Hara, CVP & CFO, Applications & Services and Cloud & Enterprise spoke about the different parts of the business and how they are very current to most people these days. The Applications & Services group is what the company thinks of as Office and Online, whereas Cloud & Enterprise is what was the old server and tools company, so it’s Azure and SQL. Thus, these divisions essentially represent the major part of the business activities of the company, with some consumer elements. Dave added that most of the things he deals with on a day-to-day basis have to do with doing business.
Microsoft embraces “openness”
Dave started off by saying that there is a lot to get excited about. According to him, one of the very first people involved in the Great Plains acquisitions, certainly within the first week itself, was the current CEO Satya and Satya was running what was then known as B Central, then Satya became part of the Dynamics business. So they worked together back then and also back in Bing’s time and he was running what is now Cloud & Enterprise. So, Dave feels like Satya brings a tremendous understanding of the business, as the business has worked in so many different parts, and Dave also thinks it may be easier for Satya to see all the connected parts.
Satya just brings a new openness to some of the partnerships we have, Dave continued. He said if you look at where the company has come to over the past couple of years that is pretty decisive enough to show where they are going, which is clearly visible in some cases like Office on iPad, SQL on Linux, etc. These are just examples that they are really more focused on, embracing what the customer wants and when they want it and in what environment they want it to work. So it’s not about whether you are Microsoft or not Microsoft. Dave thinks it’s just a new way of working in the world that we have, i.e. you can be on Microsoft Corporation in some of your products and open source on others and Microsoft can make it all work together.
Early Mover Advantage in the Cloud
To sum it up, Dave thinks it’s just that they are forming deeper partnerships, working with customers to run a more open environment, and offering products that they haven’t offered in the past. . The move from local to cloud and all the rest of that stuff is something the company jumped on very early on. According to Dave, Steve started a lot of this and Satya continued in the same, accelerated fashion.
Also, like the firm enter the world of the cloud, there are a lot of advantages to being there. Likewise, there are also a lot of ‘not everyone can be in the cloud‘. It is an expensive business. And it takes a lot to grow. Dave feels like they’re at the forefront of this. They started early and Dave thinks that is one of the reasons they are a leader in the cloud which is that they invested early and that has led them to be in a good position.
Microsoft Corporation shares were down 2.60% pre-market.