How Satya Nadella Has Transformed Microsoft

Three years after he became the chief executive officer of Microsoft Satya Nadella has led a transformation of the Seattle, Washington-based software giant. Prior to taking over Microsoft was in a bad shape – Zune, Microsoft’s answer to Apple’s iPod, had earned a reputation as one of the biggest product flops in the history of technology; the software maker was struggling in the smartphone space and its Windows 8 operating system had been poorly received.

However despite the numerous challenges that stood in the way of the software giant, Nadella has managed to steer the company in a new promising direction. One of Nadella’s strategies and which is paying off was to concentrate more energies on cloud computing. This was not a surprise coming from Nadella since he had previously served as the executive vice president of the cloud and enterprise group at Microsoft.

Microsoft’s increased attention to cloud computing has spurred a reorganization at the company and this has included layoffs. The most recent round of job cuts saw employees in the global sales and marketing department laid off by their thousands. Other rounds of layoffs are also expected in the near future.

Wall Street also seems to have approved of the transformative changes that Nadella is making at Microsoft. Since he became the chief executive officer, shares of the company have almost doubled. Optimism is still strong that the growth story of the software firm will continue as a bet on cloud computing pays off under the leadership of Nadella.

Some of the biggest developments that have come at Microsoft in Nadella’s tenure include the company’s purchase of LinkedIn at a price of $26.2 billion. The acquisition, which is the biggest in the history of the company, was announced just two years after Nadella had been appointed CEO. Unlike the Nokia acquisition which led to Microsoft having to write down approximately $7.9 billion, the LinkedIn acquisition has brought into the company new talent and assisting in building out the portfolio of services that the software giant offers.

During Nadella’s tenure, the rivalry between Apple and Microsoft seems to have simmered.

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