Brandon Fletcher
In the landscape of corporate communication, few companies stand out for their unique and often perplexing jargon quite like Microsoft. This dedication to unconventional phrasing has taken on a new dimension with the introduction of AI technologies. The Wall Street Journal reports that Microsoft has made significant changes to its organizational structure, eliminating three outdated reporting segments:
- Productivity and Business Processes
- Intelligent Cloud
- More Personal Computing
In their place, Microsoft will now operate under two contemporary divisions:
- Agents and Infra
- Devices and Consumer
According to CEO Satya Nadella, the rise of AI is fundamentally reshaping the structural dynamics within Microsoft. The “Agents and Infra” division encompasses the company’s AI models, GitHub, Azure (the cloud infrastructure segment), and Microsoft 365, now enriched with Copilot features.
Conversely, the “Devices and Consumer” division includes Xbox and Windows, along with Microsoft’s search and advertising sectors, covering platforms like Bing and LinkedIn. To an outsider, these segments might seem logical, yet they can appear somewhat opaque and inconsistent upon deeper examination. For instance, are Microsoft 365 and Windows genuinely isolated from each other? for those within Microsoft, these changes likely feel cohesive and intuitive.
During Steve Ballmer’s era as CEO, he introduced the concept of “One Microsoft” in an effort to unify the fractured company, a vision that his successor, Nadella, is believed to have pursued. Today, “One Microsoft” persists, albeit now split into two whimsically named divisions.
Over the years, Microsoft has developed a unique internal lexicon that has occasionally spilled into public discourse, reflecting a certain zeal reminiscent of Ballmer’s era. One of the most notable phrases is “eating your own dogfood,” which refers to using the software products under development. some terminology borders on the bizarre; for instance, Microsoft prefers the term “accountability margin” over the more conventional “profit margin.”
Which of these new divisions is projected to generate more revenue? According to the Journal, “Agents and Infra” is expected to achieve approximately $75 billion in revenue for the upcoming first quarter, while “Devices and Consumer” anticipates around $15 billion.
Gizmodo has reached out to Microsoft for comments regarding these changes and will provide updates if a response is received.
Daniel Mercer
Ethan Carter
