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Microsoft changes its tune

Chris Player | Nov. 26, 2015
The real change happening at the tech company, in recent years, is in the way it talks about itself.

“It’s not a simple play against AWS. Firstly, but perhaps increasingly less so, Microsoft has been plagued by security issues for more than a decade. They’ve been responding to that with deep investments in changing how they secure their products and services.

"Most importantly, for the Cloud era, they are taking the issues around data sovereignty and data residency all the way to the US government. They realise that the perception of the USA, in terms of surveillance and privacy, could have a material impact on their business globally," he said.

This approach to security is reflected locally as well with Microsoft gaining IRAP certification for Azure, Office 365 and more recently Dynamics CRM online.

“The company's approach to Cloud has driven not just Infrastructure-as-a-service (IaaS) adoption, but Platform-as-a-service (PaaS) and Service-as-a-service (SaaS), as well as customers increasingly viewing Azure as a true hybrid platform,” Warrilow continued.

“The shift to Cloud will have a negative near-term impact on gross margin, and this could present issues for the company. Microsoft will also have issues with Windows as a franchise, and the strategy around monetising things like Bing are still not as solid as the rest of the corporate strategy,” he concluded.

The interview with Joe Sweeney was conducted at Insight 2015 on the Gold Coast which Chris Player travelled to as a guest of Microsoft.


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