Microsoft is restructuring its global marketing strategy that will impact the Worldwide Commercial Business under Judson Althoff and Jean-Philippe Courtois’ global sales and marketing group.
The company’s sales force has been trained for years to sell software for use on desktops and servers. Now in it’s new marketing strategy, it says that it’s now more important to convince customers to sign up for cloud services hosted in Microsoft’s datacenters. The Redmond, Washington-based company wants to accelerate this switch to add more revenue and catch cloud market leader Amazon.com Inc.
Its unclear what groups will be affected by this new marketing strategy and where they are located. The shift, which could be announced as soon as next week, comes as Microsoft retools its legions of sales teams to emphasize its cloud-computing products instead of licenses for boxed software.
A Microsoft spokesman declined to comment.
Althoff has been critical of Microsoft’s former sales approach, which he characterized as an attempt to sell Azure, Microsoft’s platform of on-demand computing power and software services, using strategies learned from decades of selling out-of-the-box software.
Microsoft is restructuring its global marketing strategy that will impact the Worldwide Commercial Business.
— The Telegraff News (@omilosimon) July 16, 2017
Ultimately, the new marketing strategy will likely see the company ramp up its efforts to sell subscription-based cloud services, a fast-growing business for Microsoft with a $15.2 billion run rate. While its traditional buy-once software business is still huge, sales have been declining as the cloud business erodes its growth.
Most people believe this reorganization is likely to include layoffs — although none have been formally announced — and some do not believe cuts will be very deep, sources tell Business Insider.
Internally, there are people who think this change, even if it involves layoffs, could be a step in the right direction, as Microsoft increasingly tries to refocus its efforts on selling cloud services rather than software licenses, according to chatter on Blind, an anonymous app popular with Microsoft employees.
This latest marketing strategy comes shortly after the end of Microsoft’s 2017 fiscal year, which wrapped up Friday. The company has scheduled its Q4 earnings call for July 20.
Microsoft CEO SatyaNadella (pictured above) announced the company’s adoption of a mobile-first, cloud-first direction in March 2014, shortly after he joined the company in that position.
One of the most visible illustrations of that shift arrived a year later with the release of Windows 10, which Microsoft has called the “last” Windows. That’s because Windows 10 is updated on an ongoing basis via the cloud rather than being sold as a software package available in discrete and separate versions.
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