I think the fact that the Azure growth rate accelerated so much says enough: if you find yourself in a gold rush, be the one selling pickaxes and shovels.
Meanwhile, they are pushing AI tools in your face in every application, yet even with all the companies trying out AI these days they only managed an 18% growth in productivity tools for businesses? They were achieving a growth rate of ~14% before the AI boom!
They might have a great quarter selling compute to AI startups, but what's the long-term future of those investments going to look like when end users just aren't that interested in AI?
Also,
> Microsoft ended its fiscal year with 228,000 employees, the same as a year ago. The company laid off 6,000 people in May, and another 9,000 this month. In a note to employees last week, Mr. Nadella said he understood the frustration over the layoffs despite the fact that “by every objective measure, Microsoft is thriving.” He called the contradiction, “the enigma of success.”
Literally billions of dollars of profits, and they still can't think of any way to avoid mass firings. If that's what success is supposed to look like, I shudder to think what a poor quarter is going to be.
jahnu•6mo ago
> Literally billions of dollars of profits, and they still can't think of any way to avoid mass firings.
I always wonder how a company can’t think of new avenues to explore with all that talent. Hiring is expensive so use that advantage!?
akimbostrawman•6mo ago
>of any way to avoid mass firings
Why would they need to. They are making more money with less people needing to be paid, that's the entire moat of AI.
crote•6mo ago
Meanwhile, they are pushing AI tools in your face in every application, yet even with all the companies trying out AI these days they only managed an 18% growth in productivity tools for businesses? They were achieving a growth rate of ~14% before the AI boom!
They might have a great quarter selling compute to AI startups, but what's the long-term future of those investments going to look like when end users just aren't that interested in AI?
Also,
> Microsoft ended its fiscal year with 228,000 employees, the same as a year ago. The company laid off 6,000 people in May, and another 9,000 this month. In a note to employees last week, Mr. Nadella said he understood the frustration over the layoffs despite the fact that “by every objective measure, Microsoft is thriving.” He called the contradiction, “the enigma of success.”
Literally billions of dollars of profits, and they still can't think of any way to avoid mass firings. If that's what success is supposed to look like, I shudder to think what a poor quarter is going to be.
jahnu•6mo ago
I always wonder how a company can’t think of new avenues to explore with all that talent. Hiring is expensive so use that advantage!?
akimbostrawman•6mo ago
Why would they need to. They are making more money with less people needing to be paid, that's the entire moat of AI.