Satya Nadella’s candid confession about Microsoft’s future

In the rapidly changing context of the technology world, Microsoft CEO Satya Nadella recently made it clear that some of the company’s historically successful businesses may no longer be as relevant in the future. This self-criticism in the age of AI is a warning signal not only for Microsoft, but for the entire tech industry.

The struggle to survive in the age of AI

While speaking frankly to employees at a town hall meeting, Nadella said, “Some of the great businesses we have built may fall behind in the race for the future.” In his words, it is clear that AI has become the center of technology today. The future is dark for organizations that cannot adapt to change in time.

Lessons from the past – the story of DEC

Nadella cited the example of Digital Equipment Corporation (DEC). This company once had a monopoly in the tech world. But they gradually disappeared from the market due to their failure to keep up with new technologies, especially RISC architecture. “I was obsessed with the decline of DEC,” Nadella says. “They were destroyed because they couldn’t compete with competitors like IBM.”

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He made it clear that Microsoft shouldn’t make the same mistake, or else history would repeat itself.

Nadella also said that his first computer was a DEC VAX, and he dreamed of working there one day. Ironically, some of the talented employees who were later laid off from DEC played a key role in creating Microsoft’s Windows NT. Here he highlights the importance of talent retention. He believes that attracting top talent and creating a healthy, inspiring environment for them can move a company forward in the long run.

Employee complaints about culture

One employee commented that the current work environment at Microsoft has become cold, rigid, and unsympathetic compared to the past. The human relationships that employees once valued are slowly disappearing.

Nadella did not stop there. Instead, he openly admitted that there is still a lot of room for improvement from a leadership perspective.

Promise of change

Nadella’s response was very clear, “I take this as feedback for myself and our leadership team. At the end of the day, we can do better, and we will.”

It is clear from this statement that Microsoft is trying to bring a new balance not only on the technical side, but also in the organizational culture.

Nadella’s admission proves that there is no such thing as permanent success in the world of technology. Change is the only constant. The tragic outcome of history like DEC has become a warning sign for Microsoft. However, at the same time, Nadella’s transparency and promise of improvement light a new light of hope that if the leadership takes the right steps at the right time, Microsoft will be able to remain relevant even in the AI ​​era.