Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

How every company could become a 'tech' company

How every company could become a 'tech' company

These days nearly every company is, or is in the process of becoming, a technology company. Major retailers have mobile apps and robust e-commerce platforms. Banks are getting into cryptocurrency. Grocery stores no longer expect customers to come inside to shop -they can place an order online and pick it up outside the store, or have it delivered right to their homes.
All kinds of companies are developing and using technology to make their operations more efficient and their products and services more attractive to consumers.

Satya Nadella, CEO of Microsoft (MSFT), knows the world of digital enterprises particularly well.

Speaking at the recent AT&T Business Summit, Nadella offered some advice for companies looking to make a digital transformation.

"One of the things I think a lot about is: If we use this term that every company is a digital company, every company is a software company, what does it mean?" Nadell said. "How does one create that digital strategy inside of any enterprise, across any vertical or industry? The formula I think about is what I describe as 'tech intensity.'"

First, he said, companies need to be early adopters of new technology to power their businesses, so they don't waste time or money later trying to get out from behind the curve. Then companies need to cultivate the ability to develop their own "digital IP," building exclusive software and tools that only their customers have access to.

"You don't want to be caught up in spending your scarce resources on what is essentially something that can be available as a commodity. You want to bring in the commodity, and build your own IP," Nadella said.

The final piece of the puzzle, Nadella said, is that companies must develop technology that both they and their customers can trust — relying on credible suppliers and building security into new products.

Nadella said he thinks of it like a math formula: "Tech adoption" times "tech capability," multiplied "to the power of trust."
"This is what I feel every company needs to do to become a software company," he said.

Of course, it makes sense that Nadella would be doling out such advice. In recent years, Microsoft has shifted some of its focus away from its Windows operating system and devoted more resources to developing web-based enterprise technologies. The company's business model largely relies on enterprises wanting to become tech companies, and using Microsoft products and services to do it.

That's especially true when it comes to new technologies such as the cloud business, where Microsoft is competing with industry giant Amazon Web Services to convince businesses and government agencies to entrust their data storage to its Azure cloud. It was handed a big win last month when the US Department of Defense awarded a $10 billion cloud services contract to Microsoft Azure over AWS.

Nadella said that fueling others' digital transformations has been part of his vision for Microsoft since he became CEO in 2014. He said that as only the third chief executive in Microsoft's history behind Bill Gates and Steve Ballmer, and the first without what he called "founder status" at the company, he felt he needed to establish a sense of purpose that would define his leadership.

"That's what led me all the way back to the origin of the company," Nadella said. "We were a tools company, a platform company ... If we stick to what we were really meant to do, which is to create technology so that you can create technology, we'll be okay. So that's why I went back to say, 'let's have that and be proud of that and let's be grounded in that sense of purpose.'"

Nadella said there are three major technological shifts that companies today will have to harness in the coming years in order to succeed as digital enterprises: the ability to have powerful computing capabilities in many different kinds of devices, artificial intelligence that will make sense of all the data generated from that computing, and the fact that people all have multiple devices that interface with their various senses, such as smart speakers and augmented-reality glasses.

Developing artificial intelligence technology has been one of Nadella's top priorities during his time as CEO, and it's one of the key selling points of the Azure cloud.

"These three trends compound -computing is everywhere, every experience is powered by AI and we live in a multi-sense, multi-device world," Nadella said. "And the question is: What does it mean for retail? What does it mean for hospitality? What does it mean for healthcare?"
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×