‘One lesson learned’: Satya Nadella on Microsoft’s largest oversight

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Microsoft CEO Satya Nadella mentioned that his largest oversight was failing to anticipate the dominance of search, which Google capitalised on.

Govt Chairman and CEO of Microsoft Company Satya Nadella attends a session throughout the 54th annual assembly of the World Financial Discussion board in Davos, Switzerland, January 16, 2024.(Denis Balibouse/Reuters)

Stating that this was “one lesson learned,” he added that “We (Microsoft) missed what turned out to be the biggest business model on the web, because we all assumed the web is all about being distributed,” in a podcast with YouTuber Dwarkesh Patel.

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“Who would have thought that search would be the biggest winner in organising the web?” he mused. “And so that’s where we obviously didn’t see it, and Google saw it and executed super well.”

He talked about {that a} large lesson on this was how “you have to not only get the tech trend right, you also have to get where the value is going to be created with that trend.”

“These enterprise mannequin shifts are most likely more durable than even the tech development modifications,” he famous.

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Examples could be the 4 main technological transformations Nadella was a part of, together with the primary from mainframes to non-public computer systems after which to client-server structure.

One other instance was the emergence of the net, throughout which the Mosaic browser was launched shortly after Nadella joined Microsoft. This was adopted by the Netscape browser.

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“We had the browser moment, and so we had to adjust. And we did a pretty good job of adjusting to it because the browser was a new app model,” he added.

Nadella joined Microsoft in 1992. Earlier than that, he was a member of the expertise employees at Solar Microsystems. He earned a bachelor’s diploma in electrical engineering from Mangalore College, a grasp’s diploma in pc science from the College of Wisconsin – Milwaukee and a grasp’s diploma in enterprise administration from the College of Chicago.