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Nadella appears to recognize that sometimes it's the individual users of enterprise technology that drive the bus. Right now, Microsoft is about as far away from being focused on individuals as a company can get. In fact, Microsoft missed its chance to take part in any meaningful way in the largest end-user technology trend of the last decade: mobile.

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The result was Windows Me, per-device licensing, draconian Windows anti-piracy measures, Windows Vista, the Office Ribbon and Windows 8. Under former CEO Steve Ballmer, Microsoft actively tuned out people's responses to its software, focusing instead on delivering products that served the company's strategic needs. That’s when Microsoft gradually began to lose touch with the preferences of its actual users.

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At the time, no one thought you needed to make enterprise software intuitive and fun to use. Somewhere in the late ’90s, Microsoft decided that it could make a lot more money selling enterprise software. It was that relentless attention to software features and usability that formed the basis of that perception. People joke that Microsoft's products aren't good until version 3.0 or later. It listened to customers, the press and analysts, and it iterated its software over and over, until people loved it. It was David to IBM's Goliath in the late 1980s and early 1990s. It's ironic, too, since Microsoft incubated as a customer-focused company. He uses words like 'people” and 'personal.” In a long memo delivered to Microsoft employees last July, he wrote: ' will reinvent productivity to empower every person and every organization on the planet to do more and achieve more.' Productivity is another decades-old Microsoft marketing mantra.īut connecting with end users is where Microsoft is still heavily challenged. Nadella doesn’t use the word “consumer” in this context. Microsoft CEO Satya Nadella has made some good course corrections, too, especially in his recognition that individuals are as much the customer of enterprise applications as the CIO or other IT purchaser. Enterprise cloud computing is Microsoft's arena to lose - or not. For many IT decision-makers, Microsoft is the devil they know. Other companies have been out in the field much longer with their cloud solutions for business, but Microsoft has been selling servers and desktop software to enterprises for decades.

It's no accident that Microsoft used basically the same strategy almost 20 years ago with Windows 95 and Office 95. Office 365 is just one of Microsoft's early cloud clients.

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Cloud is in part a platform play - something Microsoft knows very well how to do.

In fact, Microsoft is emerging as a significant power in enterprise cloud computing. After coming late to the party, Microsoft's Azure cloud computing platform for enterprises is doing well, helping to drive 128% growth of its commercial cloud revenue in the company's latest quarter compared with the same quarter last year. Microsoft's stock has nearly doubled over the last couple of years.

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The company is smartly cutting its losses on Windows 8 and plans to launch Windows 10 next year. Microsoft’s Surface Pro hardware is well designed and useful. It's been resting on its laurels.įor the first time in a long time, Microsoft is doing well on several fronts (whereas companies like IBM and HP, not so much).

It has essentially been reactive, not an industry leader. But the company has been rudderless for years. Microsoft is a prodigious revenue and profit generator. And by turnaround, I don't mean financially. We may be witnessing the beginning of a turnaround for one of the mainstay companies of the IT industry: Microsoft.