Earlier quoted context omitted.
I expect this is the crux of the problem. There aren't any "AI" products that have enough value. Compare to their Office suite, which had 100 - 150 engineers working on it, every business paid big $$ for every employee using it, and once they shipped install media their ongoing costs were the employees. With a 1,000,000:1 ratio of users to developers and an operating expense (OpEx) of engineers/offices/management. Th…
I think this is a really good take, and not one I’ve seen mentioned a lot. Pre-Internet (the world Microsoft was started for), the man expense for a software company was R&D. Once the code was written, it was all profit. You’d have some level of maintenance and new features, but really - the cost of sale was super low. In the Internet age (the likes of Google and Netflix), it’s not much different, but now the cost of…
Microsoft Azure was launched in 2010. They've been a "cloud" company for a while. AI just represents a sharp acceleration in that course. Unfortunately this means the software products have been rather neglected and subject to annoying product marketing whims.