CEO Satya Nadella Seeks to Change Microsoft's Image
October 25 2016 - 1:00AM
Dow Jones News
LAGUNA BEACH, Calif.—Microsoft Corp. Chief Executive Satya
Nadella is pushing the company to shed its not-invented-here
approach and learn where it can improve.
"We want to push to be more of a learn-it-all culture than a
know-it-all culture," Mr. Nadella said Monday during an appearance
at The Wall Street Journal's WSJDLive 2016 global technology
conference.
One of Microsoft's challenges has been its early success with
Windows and Office. "Early success is probably the worst thing that
can happen in life," Mr. Nadella said.
He acknowledged Microsoft's missteps in mobile phones.
"We clearly missed mobile," Mr. Nadella said. "There is no
question."
But he is pushing Microsoft into new areas. Mr. Nadella noted
the big bets Microsoft is making in augmented reality with its
HoloLens device, and the investments it is making in artificial
intelligence. Last month, the company moved to concentrate its
artificial-intelligence operation in one group.
"You've got to be able to add unique value and be on the hunt
for the next big category," Mr. Nadella said.
Microsoft shares hit an all-time high Friday, trading as high as
$60.45 before closing at $59.97, after the software giant reported
big gains in its Azure cloud-computing business the previous day.
The stock set a new high again Monday, closing at $61.
Microsoft shares stagnated for more than a decade as Mr.
Nadella's predecessor Steve Ballmer put the company on a strategic
path that trailed rivals such as Apple Inc. and Alphabet Inc. on
emerging technologies, including mobile computing and web
search.
When Mr. Nadella took over as CEO in February 2014, he pulled
back from Mr. Ballmer's bet on mobile phones, and moved
aggressively into cloud computing.
Mr. Nadella also has put Microsoft on an acquisition binge. In
June, Microsoft agreed to its largest acquisition ever, a $26.2
billion purchase of LinkedIn Inc., the professional social-network.
The deal, which is expected to close by the end of the year, will
give Microsoft control over the vast pool of data held by
LinkedIn.
Last month, Microsoft's business-software rival Salesforce.com
Inc. said it would push regulators to block the deal, arguing that
the deal would give Microsoft an unfair competitive advantage
because it could block rivals' access to the data on its
membership.
Mr. Nadella said Microsoft intends to be clear with regulators
that it will be a responsible "custodian" of LinkedIn's data.
Write to Jay Greene at Jay.Greene@wsj.com
(END) Dow Jones Newswires
October 25, 2016 00:45 ET (04:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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