The most notable tech event last week was the departure of Panos Panay, Chief Product Officer at Microsoft leading the company’s Surface line, to…Amazon.
Here are some ideas:
1/ Last week Microsoft held its annual event usually dedicated to hardware (i.e. Surface line), but it was mostly about AI. The two new Surface laptops were presented at the end, starting with minute ‘45. The entire presentation had 59 minutes! LINK
This occurrence was not accidental, but it shows the list of priorities at Microsoft and hardware is not among them.
2/ The Surface line was introduced to compete on quality and design with Apple products, but the sales have been low (mostly in line with the PC industry decline); now, the sales are at the 2016 level.
These two points can be sufficient for most of us to conclude that Microsoft is and will remain a software company.
3/ He could have chosen another company but Microsoft and Amazon are platforms, while Silicon Valley is about product. A totally different environment, no matter who you ask.
4/ It is said that if your division can’t bring $10 bn you are somehow ignored:
So, his transition to Amazon, which is building an army of products, is natural. Their office is just across the lake.
In conclusion, we can say that this event showed clearly what the priorities at Microsoft, as briefed above by your truly:
