Welcome to the Cloud Wars Minute — your daily news and commentary show, hosted by Cloud Wars Founder Bob Evans. Each episode provides insights and perspectives around the “reimagination machine” that is the Cloud.
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In this Cloud Wars Minute, Bob Evans explores Microsoft‘s quest to go “all in on AI” after laying off 10,000 employees.
Highlights
00:39 — Every company goes through its ups and downs. Companies that seem invincible aren’t really infallible — that’s just the human condition expressed in the corporate world.
01:00 — Bob shares a few thoughts based on Microsoft CEO Satya Nadella’s communication to the company about these layoffs. The biggest takeaway: Microsoft will become even more aggressive, pointed, and ambitious about what it wants to do with artificial intelligence (AI).
01:37 — Nadella framed his comments in the larger notion that despite the unfortunate layoffs of 10,000 employees, the company will continue to make strategic investments in specific areas and hire for strategic positions. Bob strongly believes that these strategic areas are around AI.
02:21 — Nadella said that AI is “the next major wave of computing being born” and will establish “a new computing platform.”
02:50 — He also said that Microsoft will continue to “invest in strategic areas for our future” and “divest in other areas.”
03:06 — Microsoft will reveal its quarterly numbers on Tuesday, January 24, for the period that ended on December 31, which is the company’s FY23 Q2 earnings. Bob is hopeful that during that call, Nadella will offer insights into what these strategic investments will be and the role that AI will play.
03:49 — The company is also taking a $1.2 million charge against the severance of the layoffs of 10,000 employees. Nadella also mentioned changes to the hardware allowances — what does that mean?
04:11 — The layoffs are certainly notable and gutwrenching, but the bigger questions that lie are what will Microsoft choose to do now? What new directions is the company going to focus on?
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