Announcements, Cloud Computing, Investing

How the Microsoft Layoffs Are Of (Some) Benefit To You

photo by Robert Scoble on Flickr Licensed under Creative Commons: By Attribution 2.0

photo by Robert Scoble on Flickr Licensed under Creative Commons: By Attribution 2.0

photo by Robert Scoble on Flickr
Licensed under Creative Commons: By Attribution 2.0

Yesterday, Microsoft announced that it would eliminate as many as 18,000 jobs or about 14% of their workforce.  Some of you may be concerned about how this will affect the Microsoft products and services we provide to our clients.  In truth, there will be no negative impact upon our services and the reorganization is actually designed to improve the very cloud solutions we give you.   While we could put a positive spin on this without any exaggeration, we nonetheless feel that the prospect of people losing their jobs is nothing to be celebrated.  And so the parenthetical title of this blog post.

So let’s first address why this is not going to detract from the quality of the Microsoft products we use and resell.   Over 12,000 of the layoffs will be from the acquired Nokia division.  New CEO Satya Nadella is also reorganizing sales, marketing, and engineering.  The focus of this reorganization will be streamlining management and research efforts, plus less-than-successful efforts such as the production of original Xbox television programming.  By many accounts, Nadella’s change in engineering will allow the company to avail itself of the same efficiencies in cloud computing that Microsoft has applied to its cloud services clients…including the very same capabilities to do more with less effort and cost that we have been evangelizing since the founding of Banshee Cloud in 2012.

And this is where the improvements will eventually directly benefit our clientele.  Since Nadella took over the helm from Steve Balmer earlier this year, he has constantly advocated cloud services as the future of Microsoft.  This is apparent even in the television advertising for the Microsoft Cloud.  We see it on a daily basis, as we view the information and marketing materials given to us from the company.   As with all of our cloud vendors, we see the current competition to be a source of constant service and cost improvement.   What Microsoft truly gives us is the ability to provide you with what we truly feel are incredible computing capabilities.   And we work to translate these capabilities into tremendous power, security, and cost savings for every single business of every size that we work with.

Apparently, Wall Street agrees that this is a positive move.   Microsoft’s stock increased by 1 percent yesterday, compared to a 19% gain for the year to date.  Many analysts feel that the reorganization is a positive move on the part of the company.

The bottom line is that while we hate to see anyone lose their jobs, the overall strategy of streamlining the company and focusing on cloud computing is a move that certainly will result in improvements in the very services that we provide to you.   And since we use cloud solutions to empower businesses, your business will continue to benefit from heretofore unheard of capabilities and cost savings.   And as your business and other businesses grow, these cloud services will give each and every one of them the ability to contribute to the economy and employment.


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