Babar Khan Javed
Apr 3, 2018

Microsoft reorganizes for AI

Windows takes a backseat as Microsoft moves forward in offering large-scale AI and cloud-based offerings.

Satya Nadella
Satya Nadella

A major reorganization at Microsoft means the company will focus on two divisions.

In a company-wide email, Satya Nadella, the CEO of Microsoft, informed his staff that the company would be split between a division entirely focused on cloud and artificial intelligence (AI) based solutions, while the second division would be devoted towards experiences and devices.

This follows a massive push by the company to enable digital transformation, in an era where the revenue contribution from the  Windows product line fell from 28% in FY 2010 to 16% in FY 2017.

The announcement follows Nadella's reorganization in 2016 which resulted in the creation of an AI and Research Group when the Bing and Cortana product groups were consolidated into an existing Microsoft Research Group.

In his email, Nadella explained how AI capabilities are advancing, how computing is more powerful and ubiquitous from the cloud to the edge, and how physical and virtual worlds are continuing to come converge.

“Today’s announcement enables us to step up to this opportunity and responsibility across all our Solution Areas,” he wrote.

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