In an effort to free up CEO Satya Nadella and his engineering executives to focus on technical innovation, especially in artificial intelligence, Microsoft is reorganising its senior leadership team. Long-time sales boss Judson Althoff will now be in charge of marketing and operations.
On October 1, Nadella sent out an email to staff members announcing Althoff’s appointment as the new CEO of Microsoft’s Commercial Business. As part of this increased role, he will now be in charge of the organisation’s operations. This new commercial business unit will include Microsoft’s Chief Marketing Officer, Takeshi Numoto. Nadella’s email claims that the change will allow him to spend more time on product development, artificial intelligence, and the company’s substantial data centre expansion.
Prior to joining Microsoft in 2013, Althoff served as the company’s chief commercial officer and executive vice president. He had top sales roles at Oracle and EMC before joining Microsoft. Althoff returned from an eight-week sabbatical shortly after the reorganisation.
What Nadella’s Email Stated to the Employees?
According to Nadella, Microsoft is going through a tectonic transition in its AI platform, which means that it must manage and expand its commercial company at scale today while simultaneously creating the next frontier and performing perfectly across both. History demonstrates that general-purpose technologies like artificial intelligence (AI) lead to significant increases in GDP and productivity. The brand has a special chance to assist its clients and the global community in fulfilling this promise.
Microsoft’s success hinges on empowering its partners and clients in the public and private sectors to transform their operations by fusing their human capital with cutting-edge AI capabilities. In order to boost growth and solidify the company’s position as the go-to partner for AI transformation, it will need to collaborate more and more with sales, marketing, operations, and engineering. In light of this, Nadella has requested Judson Althoff to assume a more expansive position as the company’s CEO.
Judson has been in charge of Microsoft’s worldwide sales team for the last nine years. He was also the driving force behind the creation of Microsoft Customer and Partner Solutions (MCAPS), which is now the “number one seed” in the sector and the key growth engine for our business.
Judson to Lead New Commercial Leadership Team
In order to drive Microsoft’s product strategy and governance, GTM readiness, and sales motions with shared accountability for the rigour and executional excellence our customers expect, Judson will also serve as the leader of a new commercial leadership team that consists of leaders from engineering, sales, marketing, operations, and finance.
This will also enable Nadella and Microsoft’s engineering leaders to lead with intensity and speed in this generational platform shift by focusing entirely on our most ambitious technical work, which spans the brand’s data centre buildout, systems architecture, AI science, and product innovation.
Quick
Shots
•Judson Althoff appointed as CEO of
Microsoft’s Commercial Business, taking charge of marketing, operations, and
global sales.
•New commercial business unit includes
Microsoft’s Chief Marketing Officer, Takeshi Numoto.
•Nadella emphasizes that AI is a
generational platform shift and crucial for global productivity and growth.
•The leadership change frees Nadella
and engineering teams to focus on technical innovation, AI science, and
product strategy.
Satya Nadella, the CEO of Microsoft, has acknowledged that he has a disturbing notion that keeps him up at night: what if the computer giant fails to survive the AI revolution? An innocent query about workplace culture ultimately led to a rare moment of weakness from the guy in charge, which prompted his open revelation during an employee-only town hall.
Nadella, who has led Microsoft into its current AI-driven renaissance, acknowledged that the company’s largest and most lucrative endeavours might not be as significant in the future. According to him, some of the company’s largest ventures may not be as significant in the future.
Nadella Narrates the Ordeal of DEC
The CEO cited Digital Equipment Corporation (DEC), a well-known cautionary tale from Silicon Valley’s history. Early in the 1970s, DEC was a major force in computing, but it lost its appeal when it couldn’t keep up with new developments, especially the Reduced Instruction Set Computing (RISC) architecture. Nadella acknowledged that the IT sector is replete with examples of once-great businesses that have simply vanished.
He went on to say that DEC is the specific one that haunts him. He disclosed that his first computer was a DEC VAX, and he had previously fantasised of working there; thus, the reference also had a personal sting. He pointed out that Microsoft ended up reaping unanticipated benefits from DEC’s downfall. He recalled that several of the developers of Windows NT were from a DEC lab that had been laid off, highlighting the fact that industry disruptions frequently cause talent to go from one company to another.
When a UK-based employee noted that Microsoft felt noticeably different, colder, more rigid, and lacking in the empathy Microsoft had come to respect, then the topic of corporate mortality came up. The criticism was courageous, and Nadella did not brush it off. Rather, he acknowledged that the emotion was accurate and pledged to consider how leadership could improve.
Survival in a Fast-Evolving Industry is the Need of the Hour: Nadella
In addition to addressing the market’s AI-driven uncertainties, Nadella recognised that the corporation had to foster an atmosphere where workers feel encouraged, appreciated, and heard. After all, surviving in a rapidly changing sector depends as much on retaining your workforce as it does on winning technology fights. The openness of the CEO acted as a rallying cry as much as a warning.
His message is that unless a corporation continuously adjusts, irrelevance will always lurk, regardless of how tall it may appear. Microsoft also needs to be on guard in this new AI-powered environment, or DEC could disappear despite its early supremacy.
However, Nadella’s remarks also highlighted the emotional strain of running a business with such a past. He seems eager to find a balance between leading Microsoft into the future and re-establishing trust with its employees, despite being haunted by the demise of previous titans and confronted by internal worries.
Quick
Shots
•At an internal town hall, Nadella
shared his personal fears about Microsoft’s survival in the AI era.
•Nadella cited Digital Equipment
Corporation (DEC) as a reminder of once-dominant tech giants that collapsed.
•Nadella revealed his first computer
was a DEC VAX, making the story emotionally significant.
•Nadella stressed the need for
constant adaptation, empathy, and cultural resilience.
Before the Trump administration’s September 21 deadline, when businesses would have to pay $100,000 annually for each H-1B worker visa, Microsoft has urged its employees on H-1B and H-4 visas to return to the US right now. The software juggernaut has also recommended individuals who are currently in the US to remain there for the foreseeable future, according to an internal email that Reuters examined.
“Those with H-1B visas ought to remain in the US for the foreseeable future. Retaining H-4 visa holders in the United States is also advised. In an email to staff members, Microsoft stated, “Strongly advise H-1B and H-4 visa holders to return to the US tomorrow before the deadline,” as reported by Reuters.
Recent $100,000 For H1-B Visas a Big Blow to Tech Giants
In a major setback to the IT industry, which mainly depends on highly qualified workers from China and India, Donald Trump issued an executive order on September 19, imposing an annual cost of $100,000 for H-1B visa applications.
Trump expressed his expectation that the tech sector would be extremely pleased with the adjustments. Howard Lutnick, the secretary of commerce for the United States, stated that if you are going to train someone, you should train a recent graduate from one of the top colleges in the United States.
Train Americans Instead of Foreigners: Trump’s Administration
Educate Americans. Stop hiring foreigners to fill American jobs. The H1-B non-immigrant visa programme is one of the most misused visa systems, according to White House staff secretary Will Scharf.
This is intended to make it possible for highly trained workers to enter the United States of America and work in industries that are not occupied by Americans. This decree will increase the cost of sponsoring H-1B applicants to $100,000 for businesses.
This will guarantee that they are bringing in highly skilled individuals who cannot be replaced by American workers. Last year, India continued to be the top country for H-1B visas. According to government data, 71% of approved recipients were from the nation alone, with China coming in second at 11.7%. Microsoft and Meta both received over 5,000 approvals for H-1B visas in the first half of 2025, while Amazon and its cloud division AWS received over 12,000 approvals.
Indian Government Engaging with the US Over H-1B issue
According to media reports on 20 September, the Indian government is working with the US administration and the IT sector to resolve the H-1B issue. They added that American businesses are particularly affected by the application fee hike because they use these visas extensively for highly qualified workers.
The order announced by US President Donald Trump on 19 September will increase the application price for H1-B visas to a hefty $100,000 per year. Depending on the size of the firm and other expenses, the H-1B visa fee might range from roughly $2,000 to $5,000.According to sources, the Indian government is actively working with the US government, the IT sector, and the Nasscom group to find a solution. According to sources, US firms are actively interacting with the US government on the issue, as they are among the largest users of these visas.
Indian technology services companies will be impacted by the United States’ decision to increase the H-1B visa application fee to $100,000, according to industry group Nasscom.
This is because onshore projects that may need “adjustments” will not be able to continue operating normally. Mohandas Pai, a seasoned industry veteran and former CFO of Infosys, added that the US decision to charge a high yearly cost to applicants for H-1B visas will discourage new business applications and could hasten offshore in the months ahead. According to data from the USCIS website, Amazon had the most H-1B visa approvals (10,044) for FY25 (as of June 30, 2025).
Quick
Shots
•Trump administration imposes $100,000
annual fee per H-1B visa, effective September 21.
•Microsoft advises foreign employees
already in the US to remain there for the foreseeable future.
•Firms like Microsoft, Meta, Amazon,
and Google face steep new costs for foreign talent.
•71% of H-1B approvals in 2024 went to
Indians; China was second with 11.7%.
•Trump team urges companies to train
U.S. graduates instead of hiring foreign workers.
With an ultimatum to staff members, Microsoft is formally ending its period of flexible remote work: work from the office at least three days a week or risk having their career options restricted. With effect starting in February 2026, the Redmond giant’s new policy marks a significant departure from its flexibility during the pandemic. In an internal memo, Chief People Officer Amy Coleman stated that the mandate begins with employees in the Seattle region who live within 50 miles of Microsoft offices.
As the organisation places a greater focus on face-to-face collaboration for career advancement, employees who don’t comply may find themselves at a disadvantage. Coleman suggested that distant workers might find it difficult to prove their worth.
“We’ve looked at how our teams work best, and the data is clear: when people work together in person more often, they thrive—they are more energised and empowered, and they deliver stronger results,” Coleman said.
Microsoft Focusing on Employee Performance
The policy is part of Microsoft’s larger effort to enhance employee performance, which has included the recent firing of thousands of people who were thought to be underperforming and the implementation of accelerated improvement programmes aimed at firing underperforming employees. This situation implies that workers who defy the office directive can be subject to closer scrutiny during assessments.
The Puget Sound region will be the initial phase of the deployment, followed by other US locales and, in 2026, worldwide operations. Although the requirements for approval are still unknown, employees have until September 19 to request exceptions.
Microsoft Employees Need to Come Out of WFH Culture
Coleman underlined that Microsoft’s current objective, the creation of AI products, necessitates intelligent individuals collaborating to solve difficult challenges.
This wording suggests that remote workers might not be able to participate in high-profile projects that are essential for advancing their careers. Due to client needs, some positions, such as field marketing, consulting, and account management, will be exempt. The message is obvious for the majority of workers, though: accept the return to the office or risk being left out of Microsoft’s expansion plans.
Microsoft Recent Layoff
Microsoft revealed plans to reduce its staff by 3% earlier this year in February. This layoff effort will impact about 6,000 employees across all teams and levels. Microsoft said in a statement to CNBC that it is still making the organisational adjustments required to put the business in the best possible position for success in a changing market.
Despite Microsoft’s better-than-expected quarterly net profitability of $25.8 billion, the layoffs nonetheless occurred. While cutting expenses elsewhere to protect profit margins, Big Tech has been investing substantially in AI because they see the new technology as a significant growth engine. In an effort to reduce expenses and give AI top priority, Google has also let go of hundreds of workers in the last 12 months.
Quick
Shots
•Policy begins with Seattle region
employees living within 50 miles of offices.
•Non-compliance may limit career
growth and project opportunities.
•Chief People Officer Amy Coleman:
in-person work boosts collaboration, energy, and results.
•Employees can request exceptions
until September 19, 2025.
Microsoft may soon ask workers to spend more time in the office as it prepares to tighten its hybrid work policies. A Business Insider story claims that the tech giant intends to implement a new attendance requirement as early as January; however, specific dates may differ depending on where its offices are located.
Microsoft’s New Hybrid Work Policy for 2025
Beginning early next year, employees at its Redmond, Washington, headquarters are anticipated to start coming into work more regularly. Microsoft is planning to require at least three days of in-office work per week, according to people familiar with the situation who spoke to the outlet.
The business is currently figuring out the specifics, although its original goal was to make an official announcement in September.
Why Microsoft is Ending 5 Years of Remote Flexibility
Microsoft has had a flexible work policy since late 2020, allowing staff members to divide their time between the office and their homes nearly evenly without requesting special permission.
However, in reality, the policy has been even more lenient, with many employees opting to work remotely the majority of the time. The business now appears prepared to adopt a more stringent balance. Although spokesperson Frank Shaw stressed that no final decision has been taken yet.
How Microsoft’s Policy Compares to Google, Amazon, and Meta?
This action would align Microsoft with other major tech companies that have recently tightened their policies around office returns. For example, Amazon mandates that staff members be present at the office five days a week.
John Stankey, the CEO of AT&T, has taken a firm stand as well, emphasising that staff members either cooperate or look for alternatives. Similar to Microsoft’s suggested strategy, Meta and Google have also implemented three-day office regulations.
The Future of Remote Work in Big Tech
It’s interesting to note that several Microsoft teams are already in the lead. More than three days a week have apparently been spent working from the office by staff members in its Corporate, External, and Legal Affairs (CELA) group. After years of relative freedom, Microsoft’s employees will need to retrain if the policy is finalised. The shift suggests that, as businesses strive for a more collaborative office culture, the days of highly flexible remote work at large tech companies may be coming to an end.
Quick
Shots
•Company set to mandate 3 days
in-office per week starting early next year.
•Since 2020, Microsoft allowed
near-equal remote/office balance, but employees often worked mostly remote.
•Some teams (e.g., CELA group) already
work >3 days in office, signaling transition in progress.
•Reflects broader move among tech
giants to rebuild collaborative office culture and reduce remote dependency.
Microsoft has unveiled Copilot 3D, an AI-powered feature that has the ability to convert standard 2D images into 3D models, just one day after the GPT-5-powered Smart Mode was implemented in Copilot.
The technology giant claims that Copilot 3D is “designed to make 3D creations fast, accessible, and intuitive.” Copilot 3D, a component of Copilot Labs, is incredibly useful if you want to test a concept, explore new ideas, or direct hands-on learning without the complexity and inconvenience of traditional 3D tools. For “a subset of users”, the feature is now free, but in order to access it, you must log in using your Google or Microsoft account.
How to Access and Use Copilot 3D?
Microsoft advises users to test the feature on a desktop computer because using a mobile browser may cause problems. Simply navigate to Copilot.com in their preferred browser and click the sidebar button that shows up in the upper left corner of the window to begin using Copilot 3D.
After selecting Labs, click the “Try now” box beneath Copilot 3D. Users can currently only upload PNG or JPG files that are less than 10MB in size, although Microsoft may eventually expand the size limit and allow additional file formats. After uploading an image, users only need to click the “Create” button and wait a few seconds to a minute for the 3D version of the image to appear.
Key Features and File Support
According to Microsoft, the pictures users wish to turn into 3D models should have a distinct backdrop or background-subject distinction. The Verge claims that while Copilot 3D may have trouble distinguishing animals and some things, it does admirably with furniture and items like bananas and umbrellas.
Best Practices for Creating Accurate 3D Models
All of the 3D models produced by Copilot 3D are compatible with the majority of 3D viewers, tools, and engines because they are saved in GLB format and may be exported to an augmented reality app. These 3D models are accessible from the My Creations tab and are stored for a period of 28 days.
Copilot 3D and the Growing AI Creativity Trend
Additionally, Microsoft advises against submitting any photographs that depict persons because doing so could result in users’ accounts being blocked for breaking terms and conditions. Instead, only upload images that users own the rights to. Additionally, nothing unlawful will be automatically prohibited, but these creations won’t be used to train future AI models.
Additionally, this launch fits into a larger trend in the AI sector. Businesses are competing not just on the basis of how “smart” their AI is, but also on how innovative and practical it can be. AI is evolving beyond merely providing answers to queries to assist humans in creating, constructing, and imagining completely new things.
Quick
Shots
•Microsoft
introduces Copilot 3D, an AI feature that converts 2D images into 3D models
instantly.
•Arrives
a day after GPT-5-powered Smart Mode in Copilot.
•Part
of Copilot Labs, aimed at making 3D creation fast, accessible, and intuitive.
Nayara Energy, a refiner supported by Russian oil giant Rosneft, filed a lawsuit against Microsoft in the Delhi High Court after the latter ceased to provide services to the company due to EU sanctions. Microsoft is “currently restricting Nayara Energy’s access to its own data, proprietary tools, and products—despite these being acquired under fully paid-up licenses,” according to a statement released by Nayara Energy on 28 July.
According to Nayara Energy, this decision creates a risky precedent for corporate overreach and raises significant worries about its effects on India’s energy ecosystem because it is based only on Microsoft’s unilateral interpretation of recent European Union (EU) sanctions.
In order to protect its rights and guarantee ongoing access to crucial digital infrastructure, the company has petitioned the Delhi High Court for an interim injunction and the resumption of services. The purpose of these actions is to avoid any possible interference with Nayara’s capacity to fulfil its commitments to Indian stakeholders and customers.
What’s Behind the EU Sanctions?
In its latest attempt to pressure Russia to put an end to the conflict in Ukraine, the European Union said on July 18 that it was suspending Nayara Energy, in which the Russian oil giant Rosneft owns a 49.13 percent interest.
Nayara Energy’s exports of petroleum products and fuels to Europe would be prohibited by the sanctions, which might also affect its business relationships with European firms. Rosneft’s intention to leave Nayara may also be hampered since potential investors may be alarmed by the EU sanctions.
Impact on India’s Energy Sector
Nayara Energy has a network of about 6,800 fuel retail locations and owns and runs a 20 million-ton oil refinery in Vadinar, Gujarat, annually. It makes up about 7% of India’s fuel retail network and 8% of the nation’s overall refining capacity. Through its own retail network, institutional sales, and alliances with other oil marketing firms, Nayara Energy mainly serves the domestic market.
Nayara Energy’s Russian Ties: A Quick Background
Formerly known as Essar Oil, the business was a member of the Essar group. After being purchased from the Essar company by a group of investors that included Rosneft, it was renamed Nayara Energy. Similar to Rosneft, a 49.13% share in the company is held by Kesani Enterprises, a consortium managed by Russia-based United Capital Partners (UCP) and Italy’s Mareterra.
Despite being owned by a consortium of foreign investors, primarily from Russia, Nayara insists that it is an Indian business subject to Indian law. In a statement released on July 28, Nayara Energy stated that although the EU is the only source of the penalties, Microsoft, a company with its headquarters in the US, has decided to stop providing services to Nayara Energy without being required to do so by US or Indian law.
Microsoft’s Position and Global Implications
Under the pretence of compliance, this action was performed unilaterally, without previous warning, consultation, or redress. These actions reveal a concerning pattern of multinational firms introducing foreign legal systems into areas where they are not applicable.
The refiner went on to say that Nayara Energy complies completely with Indian rules and regulations in all aspects of its business operations and maintains constant contact with Indian authorities to guarantee accountability and transparency. Notwithstanding these outside obstacles, Nayara Energy is steadfast in its resolve to provide continuous service and supply to meet India’s energy needs.
Microsoft Restores Services to Russia-Linked Nayara Energy, Stirring Global Debate
According to a Reuters report, Microsoft has restored IT services to Nayara Energy, an Indian oil refinery financed by Russia. Microsoft was sued by Nayara for abruptly suspending services after the European Union imposed further sanctions on Russia.
Nayara’s attorney informed a court in New Delhi on 31 July that the US corporation had restored the services, according to a Reuters report. Before the planned hearing, Microsoft restored all services, including full access to the email system, Microsoft Teams platform, and other Microsoft services, according to a PTI report that cited sources.
Recent sanctions from the EU have had a major effect on Nayara’s business operations, forcing the company to scale back operations at its refinery, which can process 400,000 barrels per day. Limited fuel storage facilities and vessel operators looking to end their contracts with the corporation were the main causes of the limitations.
According to a research group, the number of businesses and organisations impacted by a security flaw in Microsoft Corp.’s SharePoint servers is growing quickly, with the number of victims more than six times increasing in a matter of days.
Dutch Firm Reveals Surge in SharePoint Exploits
According to estimates from Eye Security, a Dutch cybersecurity firm that detected an early wave of the attacks last week, hackers have gained access to approximately 400 government organisations, businesses, and other organisations.
Its prior estimate, which it gave to Bloomberg News on 22 July, was about 60. The majority of victims are in the United States, followed by Mauritius, Jordan, South Africa, and the Netherlands, according to the security firm. According to a previous Bloomberg article, one of those compromised was the National Nuclear Security Administration, the US organisation in charge of creating and managing the country’s nuclear weapons stockpile.
The hacks, which coincide with increased tensions between Washington and Beijing over international security and trade, are among the most recent significant breaches that Microsoft has at least partially attributed to China.
Over the course of several decades, the US has frequently denounced China for purported efforts that have stolen corporate and government secrets. In an email to Bloomberg News, Vaisha Bernard, a co-owner of Eye Security, indicated that the company believes the actual figure may be significantly higher because there may be numerous additional covert techniques to breach systems that do not leave any evidence.
Other opportunistic adversaries continue to take advantage of servers that are weak, and this is continually evolving. According to Bernard, many companies involved in government, education, and technological services are among those hacked in the SharePoint hacks. In South America, Asia, the Middle East, and Europe, the number of victims was lower.
How the SharePoint Flaw Was Exploited?
The security holes provide hackers access to SharePoint servers and the keys they need to pretend to be users or services, which might give them deep access to infiltrated networks and allow them to steal private information.
Although experts warned that hackers might have already gained access to numerous servers, Microsoft has released updates to address the vulnerabilities. On July 22, Microsoft accused Linen Typhoon and Violet Typhoon, two Chinese state-sponsored hackers, of being responsible for the attacks. According to Microsoft, these were also abused by another Chinese hacker collective known as Storm-2603.
The Redmond, Washington-based business has frequently accused China of being behind significant hacks. Tens of thousands of Microsoft Exchange servers were infiltrated in 2021 by a claimed Chinese operation. Another purported Chinese attack on Microsoft Exchange in 2023 exposed the email accounts of top US leaders. Following the 2023 incident, a US government review accused Microsoft of a “cascade of security failures.”
Microsoft has warned of “active attacks” against server software used by businesses and government agencies to share internal documents. Users were instructed by the IT giant to install the recommended security fixes right away.
FBI, Microsoft Confirm Coordinated Attacks
Although it could not provide any additional details, the FBI acknowledged on 20 July that it was aware of the attacks and was working with partners in the federal and private sectors. In an alert sent out on 19 July, Microsoft made it clear that the vulnerabilities only affect internal SharePoint servers that are hosted on-site by businesses.
The business affirmed that the attacks had no effect on SharePoint Online, the cloud-based version that is part of Microsoft 365. The Washington Post, which broke the story first, claims that unidentified hackers recently exploited a software vulnerability to launch an attack against US and international organisations and businesses.
Zero-Day Vulnerability Puts Thousands of Servers at Risk
According to experts the newspaper cited, the incident was a “zero-day” attack, meaning it took advantage of a weakness that had not been discovered before. Tens of thousands of servers could be at risk from the attack.
The company described the vulnerability in the alert as one that “allows an authorised attacker to perform spoofing over a network.” Microsoft also provided advice on how to stop the vulnerability from being exploited further.
Spoofing Risks: What It Means for Governments and Enterprises
A nefarious actor can use a spoofing attack to hide their identity and pose as a reliable person, group, or website in order to trick government organisations or financial markets. Microsoft recommended users install the security fix for the SharePoint Subscription Edition as soon as possible after announcing its release on July 20.
Additionally, the business mentioned that it is now working on security patches for SharePoint versions 2016 and 2019. Microsoft encouraged users who are unable to activate the suggested malware protection to take their servers offline in order to reduce their exposure to threats until those fixes are available.
Layoffs at Microsoft: 9,000 Employees Affected in Latest Round
According to various media reports, Microsoft is laying off 4% of its employees worldwide. The tech giant said on July 2, that it was letting go of almost 9,000 workers from several departments.
Professionals of all experience levels are apparently preparing for the impact of these layoffs, which are occurring across countries. This time, Microsoft disclosed the development on the second day of the month, even though it typically announces structural changes at the end of the new fiscal year.
Microsoft stated that it will keep implementing organisational changes that are required to best position the firm and teams for success in a dynamic environment, according to a media report that quoted a Microsoft spokesperson.
The software powerhouse has been making layoff announcements one after the other this year; in January, it said it intended to fire 1% of its employees depending on their performance.
The American multinational technology giant Microsoft Corp is internationally known for its computer software, personal computers, consumer electronics, and related services. Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975. They rose to popularity during the 1980s by dominating the personal computer operating system market with MS-DOS.
Even today, Microsoft continues to be one of the big five American information technology companies, along with Amazon, Apple, Google, and Meta. While we continue to use a lot of Microsoft’s products and services, little do we know about the failed launches of the firm. This article will focus on the failed products so as to understand the evolution of Microsoft as a company in a more holistic manner, which is not usually done due to the over-emphasis on the products that did well in the market.
Low adoption; lost to Google Assistant, Siri, and Alexa.
1. Zune
Failed Microsoft Products – Microsoft Zune
To compete with the Apple iPod, Microsoft launched a new brand of digital media products called Zune. The Microsoft Zune was launched in November 2006, which included portable media players, media player software that was specifically designed for Windows PCs, and a unique music subscription service, which was named Zune Music Pass.
However, the brand did not fare well in the industry, to the extent that it took two years for them to sell 2 million units. It was shut down due to a lack of profitability in June 2012.
2. Kin
Failed Microsoft Products – Microsoft Kin
While the digital market was going crazy over the release of various kinds of mobile phones, Microsoft, in its attempt to address the contemporary tech trends, launched two mobile phones that were named Kin One and Kin Two.
Despite all the perks that they boasted about the Kin phones, they did not support games and apps that could be downloaded. This was a very bad setback in contrast to the iPhones that were having a breakthrough in the history of mobile phones through the introduction of their App Store in 2008. Unsurprisingly, Microsoft had to stop selling its Kin due to very poor sales, which are rumoured to be less than 10,000 units.
It was released as a special millennium edition operating system after Windows 98 in September 2000. Windows Millennium is deemed to be one of the worst OS that Microsoft ever launched. It had severe crashing issues and faced incompatibility with various popular applications that functioned well on Windows 98. Microsoft had to roll back the OS within one year of its release.
4. Microsoft Bob
Failed Microsoft Products – Microsoft Bob
It was launched in 1995 as a graphical user interface that was meant for Windows 3.1 and Windows 95. The intention was to provide a more nuanced user interface for the users. However, the product did not run well in the market. They were largely criticised for the price, and Microsoft had to roll it back by 1996.
5. Microsoft Portrait
Failed Microsoft Products – Microsoft Portrait
Microsoft Portrait was a video conferencing platform developed by Microsoft during the 1990s. Low internet consumption was the USP of this platform that came way before Skype and FaceTime. However, the product was called back and considered one of the worst Microsoft products. It is an irony to note that the once-flop idea is a billion-dollar industry now.
6. Microsoft Lumia Smartphones
Failed Microsoft Products – Microsoft Lumia
Microsoft acquired Nokia for $7 billion in 2014, which gave them ownership of the Lumia smartphones. It was speculated that the Lumia line of smartphones would be a flagship phone that would run on Windows software. However, they soon became unpopular due to their bad features and lack of competitiveness with respect to the rival phones. By 2017, their quarterly revenue dropped to $5 million.
7. MSN
Failed Microsoft Products – MSN
MSN was launched in 1999 to be a significant competitor in the instant messaging software market. It had more than 330 million active users every month during its zenith. However, Microsoft had to discontinue MSN due to the dispute between the TOM company that maintained MSN from China and Skype. The product was discontinued in 2014.
MSN TV was launched by Microsoft after it bought WebTV Networks in 1995. It used a television for display and was supported by online services. It was a perfect alternative for people who were looking for a computer with internet access. However, they had to discontinue this product over controversies and inconsistencies by 2013.
Microsoft entered into tablet business in the year 2012, and that was when it launched Surface RT and Surface Pro into the market. Although the Surface Pro was a successful product, Surface RT did not fare well. It was basically because of the fact that apps had to be written specifically for Surface RT to be more consumer-friendly. This confused consumers and dismayed app creators. Microsoft bailed on Surface RT in 2013, which led to the biggest sell-off of Microsoft’s shares after 200,9, which wiped out over $34 billion in market value.
10. Windows 8
Microsoft Failed Products – Windows 8
Windows 8, which was released in 2012, was an attempt by Microsoft to gain stronger market dominance in the field of personal computers as they were growing more insignificant with the popularity of tablets and smartphones.
Amongst other features, one of the most highlighted features was its new interface that featured touch-friendly tiles. However, the users and critics did not receive it well. They removed the start menu, which was introduced with Windows 95 and received widespread criticism for it.
Some of the critics even called this operating system a “Colossal blunder”. People found it difficult to work with this OS, especially while not using the touchscreen facilities. Satya Nadella, the CEO of Microsoft at that time, even admitted that there were things that went wrong in the OS. Through the introduction of Windows 10 and the start menu with it, Microsoft tried to mitigate the harm done to its reputation that Windows 8 caused.
11. Windows Vista
Microsoft Failures – Windows Vista
After launching Microsoft’s popular operating system Windows XP, they launched Windows Vista in November 2006. However, it became another flop just like Windows ME. It had lots of glitches and was slow. Apart from that, its hardware and software had incompatibility issues, which were in addition to high prices. The security issues and other incapabilities further eroded its reputation, which made this OS end up like another black spot in the history of Microsoft.
12. Microsoft Office Assistant (Clippy)
Microsoft Failures – Clippy
Long before the launch of the Amazon Assistant named Alexa, Microsoft launched its office assistant named Clippy in the year 1997 as an added service to the updated version of Office 97 till 2003.
Apart from the newly born technology, it failed to gain recognition from users, and in the end, Microsoft had to end it with the launch of Office XP. With the introduction of new technology, we can assume it to be favoured by some; however, it is considered a failed product on a larger scale.
Clippy was developed as an office assistant; however, there was no user data collection done by Clippy. Due to this, Clippy failed to gain the trust of people and their acknowledgment. There was a great gap in user interaction with Clippy due to a lack of knowledge of Artificial Intelligence.
13. Microsoft Internet Explorer 6
Microsoft Failed Products – Internet Explorer 6
Undoubtedly, the term “Internet Explorer 6” is an acknowledged term. However, when the talk is about loyal users, Internet Explorer 6 has earned. The answer can be avoided because of its failure. Internet Explorer 6 was introduced in the year 2001 along with the launch of Windows XP.
It was launched to provide a safe and free experience of web surfing. However, it failed to gain users and was replaced with newly launched services termed Microsoft Internet Explorer 7.
Microsoft failed to follow the guidelines provided by the World Wide Web Consortium, causing different visualizations of web pages on Internet Explorer than in their original form. They also failed to focus and improve the services given by Internet Explorer, hence losing the trust of users. The security provided by Internet Explorer was also not up to mark. and is considered one of Microsoft notable failures.
14. Microsoft Groove Music
Microsoft Failed Products – Groove Music
Just like the popular music platforms available now, such as Spotify and Amazon Music Unlimited, Microsoft had also launched its in-house music platform, Groove Music, launched in 2012 and was discontinued in the year 2017. Grove Music was earlier made as an additional service given to monthly music pass holders of Zune.
After the fall of Zune, Groove was tagged as Xbox Music and given as an additional service to Xbox users. In 2015, Groove Music was renamed to its original tag and was provided as an unlimited music streaming platform at its original price. Groove Music was one of the complete platforms due to its services and compatibility with different devices.
The moves taken by Microsoft were quite lagging as the competition in the same field was too stiff to catch up. Even though Groove was a complete service, there was nothing eye-catching about it to attract users to it.
15. TerraServer
Microsoft Failure List – TerraServer
Google Maps is the source of finding unknown locations easily. Long before Google even gave rise to its idea, Microsoft launched a satellite-provided image of Earth. TerraServer was launched in 1997 and discontinued in 1999.
At that time, TerraServer was the first program capable of showing neighbourhood houses with detailed information. It was the first of the best technologies invented by Microsoft. TerraServer did manage to catch the attention of the audience, but failed to survive the interest.
Most of the feedback received by TerraServer was from local users commenting on the images of their houses and neighbourhood. They failed to provide the aim behind creating such a great innovation, as was later done by Google Maps.
16. Microsoft Band
Microsoft Failures – Microsoft Band
Recently, there has been a growing trend of smartwatches seen by people of all ages. Years back in the trend, Microsoft launched its wearable band consisting of multiple inbuilt Technologies such as fitness tracker features, health-oriented capabilities, compatibility with different devices, etc. The band was launched in 2014 and discontinued in 2016. With the closure of the band, Microsoft gave refunds to its lifelong customers.
Even though the band was launched with the best technology, it was not able to survive in the market. Some reports suggest that the belt attached to the watch was weak and needed to be replaced after some time by Microsoft. The band was almost the best in the technical aspect; however, the band design was not appealing enough to attract users towards it.
17. Cortana
Microsoft Failed Products – Cortana
Cortana was Microsoft’s voice assistant, named after the AI character from the Halo video game. It was first made for Windows Phone and later added to Windows 10, Xbox, Skype, Teams, and even iPhones and Alexa.
Microsoft used the same voice actress from the Halo games to make Cortana sound real. But even with a cool voice, most people didn’t use it. It never made it to smart speakers and wasn’t as helpful as Alexa or Google Assistant.
In 2019, Satya Nadella said Cortana was just a helper for Microsoft, not a competitor. Over time, Microsoft removed Cortana from all devices. By 2024, it was completely gone, replaced by Microsoft Copilot.
All these Microsoft fails can never be considered a setback for Microsoft. It was all a learning experience that has only led the company to design and launch better products. Beginning as a lone company in the personal computer market and continuing to be one of the major players in the market even after competition and options soared tells a lot about the commendable way in which Microsoft learns from its mistakes and evolves.
FAQs
What is Microsoft’s biggest failure?
Microsoft Lumia, Zune, Kin, MSN, Microsoft Band, Groove Music, and Microsoft Bob are some of the biggest failures of Micorosft.
What is Microsoft’s most popular product?
The Windows operating system is the most popular product of Microsoft.
What are Microsoft failed projects?
Microsoft has launched many products over the years, but not all were successful. The Zune failed to beat the iPod, while Kin phones lasted just weeks due to poor features. Windows Phone struggled without enough apps and was shut down in 2017. Operating systems like Windows Vista and Windows 8 were disliked for being buggy or confusing. Projects like Microsoft Bob, Cortana, and Groove Music also failed to win users. Devices like the Microsoft Band and services like MSN TV were either ahead of their time or quickly became outdated.
What is Microsoft overhaul top after series failures?
After many failures, Microsoft changed its focus under CEO Satya Nadella. It moved from failed products to cloud (Azure), AI (Copilot), and useful tools like Teams. This shift helped Microsoft grow strong again and become one of the top tech companies.
