Microsoft Board Pushing for Faster Shift to Cloud Products
Board members at Microsoft are grappling with a growing concern: that the company’s traditional software business, which makes up the majority of its sales, could evaporate in a matter of years — and Chairman John Thompson is pushing for a more aggressive shift into newer cloud-based products.
Mr. Thompson said he and the board are pleased with a push by Chief Executive Officer Satya Nadella to make more money from software and services delivered over the internet, but want it to move much faster. They’re considering ideas like increasing spending, overhauling the sales force and managing partnerships differently to step up the pace.
The cloud growth isn’t merely nice to have — it’s critical against the backdrop of declining demand for what’s known as on-premise software programs, the more traditional approach that involves installing software on a company’s own computers and networks. No one knows exactly how quickly sales of those legacy offerings will drop off, Mr. Thompson said, but it’s “inevitable that part of our business will be under continued pressure.”
