As you may know, Microsoft is plotting a major reorganization this week, and my sources say that as many as 10,000 employees could exit the company through layoffs and other means. But the bigger news, to me, is the strategy shift that this change telegraphs: After utilizing some version of “mobile first, cloud first” for the past several years, Microsoft is finally admitting to its true future. Which is “cloud first.” Period.
This reorg and the resulting planned layoffs aren’t the first indication of this shift, of course. Back at Build 2017 in May, Microsoft began discussing something called “Intelligent Edge, Intelligent Cloud,” which at first blush seems like yet another take on “mobile first, cloud first.” (Which was itself another take on Steve Ballmer’s “devices and services” motto.)