Microsoft today is the company under
eyes with its reach ever expanding into
new industries but less than a decade
ago Microsoft had a very different image
one of stagnation bureaucracy and
decline the recent reinvention of the
company has been a lesson for the
history books and in this video we'll
see how it happened this video is
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microsoft's history it was Bill Gates
who was at the helm it was under his
guidance that Microsoft first conquered
the operating system market and in fact
he was so successful that the US
government almost broke Microsoft up but
after 25 years of leadership bill
eventually stepped down and the man he
chose to replace him well he had a much
more different vision for Microsoft
Steve Ballmer was not a technology guy
even though he was the xxx employee he
hired at Microsoft and had been around
for decades he had worked in departments
like business management and sales and
Steve's eyes it was these departments
that were responsible for Microsoft's
success and so he did his best to
reorganize leadership around the
business people instead of the
technology people as he himself put it
he wanted to break up the technology
fiefdom
which in his view were spending
ridiculous amounts of money trying to
develop new technology without any idea
whether it would be beneficial to the
dominance of Windows in the PC world
Steve saw that Windows worked and he
tries to promote it as much as possible
that's why the biggest move in his
career was attempting to spread Windows
to the mobile market first through
Windows Mobile and then Windows Phone in
many ways Steve was continuing the
philosophy Bill Gates had adopted two
decades earlier aggressive expansion and
an outright war against competition
unfortunately Microsoft was too late in
the smartphone game so Steve's dream of
making billions by selling phones never
materialized if you look at a chart of
Microsoft's stock price under his tenure
you're going
just how bad things were even though
Microsoft's revenue increased during
this period the loss of the smartphone
market was just too much these years
under Steve became a lost decade for
Microsoft and in 2014 when he announced
his resignation the stock jumped seven
percent on the news that's how badly
investors wanted him to go away the
biggest question then became who would
be his successor and everyone naturally
assumed Microsoft would hire someone
external to reshape the company to bring
it back on the path of innovation the
answer however was exactly the opposite
not only was the new CEO a longtime
insider Microsoft's he was in fact the
leader of one of the divisions Steve
Ballmer himself created Satya Nadella
had been around in Microsoft since 1998
and a decade later when Steve Ballmer
announced the creation of Microsoft's
enterprise division
Satya became its executive vice
president of course at the time nobody
considered Steve's idea to push
Microsoft and to the enterprise
businesses viable this was before Amazon
Web Services had become profitable and
before the cloud had really taken off in
the mainstream in reality when Steve saw
that Windows Phone wasn't working he
wanted to pivot towards something else
an enterprise was his idea
unfortunately this pivot began only a
few years before he was forced to resign
but internally it was becoming clear
that enterprises was indeed the way to
go the immense success of Amazon's cloud
business convinced Microsoft board that
they should work in that direction as
well and who better to execute that plan
than the man in charge of Microsoft's
own cloud efforts when Microsoft
announced that Satya Nadella would be
the new CEO the entire world was
confused to start things off nobody even
knew who he was when you look at the
search volume from Google Trends for his
name you'll see what I mean
so out of nowhere a rather unknown
executive becomes the CEO of Microsoft
and unsurprisingly there is a lot of
skepticism around the decision but then
something almost magical happens
the stock starts climbing up after a
decade of stagnation and Microsoft's
cloud computing platform Asia starts
growing rapidly and becomes incredibly
profitable within a few years price for
Satya Nadella Sleater ship is coming
from across the world as everyone
believes they're witnessing a miracle
but the truth is that when Satya took
over from Steve Asia had been in
development for over six years and the
enterprise division which is now the
bread and butter of Microsoft had been
profitable even during Steve's time
ironically even though during Steve's
leadership the stock price didn't move
Microsoft's net income more than tripled
so Microsoft's rebirth at the hands of
Satya isn't an economic way the fact of
the matter is that Microsoft was wildly
profitable before and continued being so
after what Satya did achieve was a
philosophical rebirth and while that
might not sound nearly as impressive
it's actually just as important when
Satya took over Microsoft was suffering
from decades of bad reputation which was
honestly very much deserved from
anti-competitive practices to
suppression of open-source development
there were very few people saying nice
things about Microsoft in 2014 and yet
the reorganization Satya enacted after
he took over had an incredible effect
Microsoft essentially did a hundred and
eighty degree turn on its philosophy it
not only embraced open-source
development but actively started
supporting it so much so that one of
Sonya's biggest moves was to acquire
github it's extremely telling that in
Satya's first-ever speech a CEO of
Microsoft
he didn't mention Windows even once in
fact during that speech Satya announced
does it he'd be bringing Microsoft
Office to iOS and within a few months he
did the same for Android it turns out
too that in such an interconnected world
making friends is better than making
enemies of course none of what Satya
gets credit for today would have been
possible without the ground work Steve
Ballmer late a decade earlier Wow
everyone is quick to praise Satya for
economic achievements he might not have
been fully responsible
we should recognize his true
contribution taking decades of cutthroat
aggression and transforming it into an
attitude of productive collaboration and
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