Microsoft looking to get ahead in cloud

Microsoft looking to get ahead in cloud

Microsoft Thailand, the local operating unit of the global software maker, is restructuring its sales force towards cloud-based services and capitalising on digital transformation opportunities.

Mr Dhanawat prefers re-skilling to job cuts.

The software giant estimates the value of digital transformation in the global market at around US$4.5 trillion (150 trillion baht).

"Microsoft is undergoing its biggest transformation to catch up with the growth in cloud computing, the key integral part in the digital transformation era," Dhanawat Suthumpun, newly-appointed managing director of Microsoft (Thailand) said.

Since the start of its fiscal year 2018 (July 2017 to June 2018), Microsoft Corporation has been in the process of reorganisation, putting thousand of jobs at risk. The move is part of the company's plan to stimulate revenue from cloud services. Globally, Microsoft aims to achieve revenue of about US$20 billion in fiscal year 2018 from cloud services.

The local Microsoft unit, however, has decided to re-train its workforce.

"Locally, we have to roll-out in line with global policy but we choose to re-skill employees rather than cut jobs," he said, adding that the company aims to increase revenue from cloud with double digit growth in the current fiscal year.

In the last fiscal year, Microsoft Thailand, under former managing director Orapong Thien-ngern, was the top achiever among emerging countries for the first time in the last 11 years.

Revenue from cloud locally accounted for 30% of total revenue, compared with developed countries such as the US, Australia and Singapore, where cloud accounted for 80%-90% of total revenue.

"The growth of Internet of Things and AI will drive cloud to gain more momentum," Mr Dhanawat said.

To boost growth in digital transformation, Microsoft will offer technology that will enable modern workplaces to work better, he said.

"We aim to provide technology that empowers employees and allow better engagement with customers and business optimization," Mr Dhanawat said, adding that over the next few months, Microsoft will launch a new business model by offering digital download of Windows10 and Office to consumers, instead of traditional software packages.

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