Satya Nadella, CEO of Microsoft Corp, is not worried about the mind-boggling valuation of start-ups and e-commerce companies and he doesn’t sweat about a large number of them failing too. For Nadella, what needs to be celebrated is the quality of ideas and the impact they create and what can be done to make these ideas come into being.
That’s where he sees the role of Microsoft – to enable local start-ups rely on global technology.
Speaking to a select group of editors on Thursday after inaugurating the company’s largest customer conference in the country, Future Unleashed, Nadella said that Microsoft does not see itself as an investor in e-commerce companies or acquirers of them. “Our job is to offer new digital factories. We want to be platform for businesses. We don’t see ourselves as investors,” he said.
In fact, the company on Thursday announced partnerships with three domestic e-commerce companies – Justdial, Paytm and Snapdeal. The broad ranging agreements will help these companies in creating new marketplaces, new services and new experiences for their customers. They will use a range of cloud and mobile technologies from Microsoft including advanced cloud services such as machine learning, Binge, Skype and Microsoft’s digital assistant, Cortana, to drive business innovation and customer delight.
On questions about astronomical valuations and the possibility of several of such companies falling by the wayside, Nadella did not seem worried and rather attributed the phenomenon to economic cycles, which has been happening since the time of industrial revolution. “I am no economic historian but overfunding during times of change helps in innovation. And sure some of them will fail. I don’t think about valuations but quality of ideas and impact of them and the rate at which one can realise them,” he said.
Nadella summed up Microsoft’s role as a provider of digital economy through which others can derive value and therefore “our focus will be to offer new digital factories”.He said that e-commerce companies are now big companies and Microsoft wants to help them through its technologies like the Cloud infrastructure. His focus is on creating an entire eco-system. “E-commerce companies need to be complemented by small sellers. Through our technologies – like the Cloud for instance – we want to bring small sellers also into the digital world. Local businesses can use our tools. E-commerce companies have crossed the chasm to become innovators and others will also cross,” Nadella said.
Talking about the company’s Cloud Technology, he said that devices would come and go but the key is to keep the data intact and it’s here that Cloud comes into play. Microsoft had launched cloud services from its three local data centres in September.
Agreeing that there’s a problem of last mile connectivity in India, the Microsoft CEO said that to bridge it the company is working on providing low-cost Internet rising from free TV airwaves, which is called white spaces. He said that through the use of white spaces rural WiFi can be provided. Nadella said that Microsoft is not saying it will be doing this all alone. “We are looking for partners and welcome players to come along and do this with us.”
On devices, Nadella said that the focus would be on creating new demands for personal computing. “We will create first party devices which can showcase Windows,” he said. He made a mention of Pro 4, which will be launched in India in January 2016. The device will be powered by Windows 10 and turns from a tablet into a fully powered laptop while running all desktop software.