Microsoft’s Satya Nadella On Outgoing CEO Ballmer’s Legacy, Management Style, And Vision

Comment

ZDNet’s Mary Jo Foley today published an interview with Microsoft’s Satya Nadella, one of its key executives and a candidate to be its next CEO. The discussion as written focuses on the legacy and style of the company’s outgoing CEO Steve Ballmer, with whom Nadella has worked closely.

Given the CEO buzz about Nadella, his views, and criticisms of Ballmer matter. If you are at all interested in the internal dynamics of Microsoft, Foley’s piece is mandatory reading. I’ve selected a few short segments that are worth discussing here, but the full interview is worthy.

After asking Ballmer to vet his performance, especially in reference to his past work, his boss pushed aside the concept, according to Nadella:

He said, ‘Why does that matter? Look, this business is not about longevity of any idea. It’s all about inventing new formulas. So the thing that I would want to really evaluate you on and I want you super focused on is not how I did or anyone else did with any opportunity we had, because that’s not going to tell you anything about the future opportunity.

Microsoft is Windows and Windows is Microsoft, but that doesn’t mean that the company, let alone its main brand and platform, have remained static. In fact, the above Ballmer quote fits nicely into the last year of the company under his management.

Ballmer has overseen both a dramatic revamp of Microsoft business model — from software in a box to devices and services — and a reorg of its corporate structure. Those are both new formulas enacted under Ballmer.

Whoever becomes the next Microsoft CEO will be handed the keys to a very different car. The company that shipped Windows 7 is in many ways over. Azure, Office 365, Windows 8.1, Lumia, and the like are essentially products of a new generation. That generation will be Ballmer’s functional legacy, I think, more than the company’s stagnant (until this year) stock price.

Nadella agrees:

Steve’s contribution to broadly computing as well as to this company I think will be better told, quite frankly, in five, ten years when there’s more distance. It’ll be shaped by, in fact, what we do next.

Finally, as you probably expected given his bombastic persona, Ballmer is an aggressive manager:

You come up with an idea, he’ll say, ‘That’s the dumbest thing.’ Or, ‘I don’t buy that,’ But with him, you’ve got to just keep going back. You keep going back. […] He’s one of our best and most critical users of all our stuff, as we find out the hard way.

Foley conducted the interview a few weeks back, so we can’t really tell much about its timing in terms of reading the tea leaves about what it could mean for his changes in CEO Bingo.

Still, I think that the picture that is coming out of Nadella is that he’s a calm, technology-minded person who understands the enterprise space. In my (admittedly few) interactions with the guy, that’s the vibe I picked up.

In a way, the legacy of a CEO can be compared (if we avoid the comically disparate scales involved) to an outgoing president’s. Both often see during their tenure the launch of new products or initiatives that don’t come to full fruition until after they leave office. George W. Bush’s stellar legacy with AIDS in Africa is an example of this. His paintings are not. (And no, I am not comparing Ballmer to Bush, calm down.)

If the current crop of rumors is correct, we could see a new CEO for Microsoft by the end of the year. If that bears out, and it’s not Nadella, we can at least appreciate that in ten years’ time — at which point he will be a half decade shy of 60 — we’ll know who the frontrunner will be.

Top Image Credit: Flickr

More TechCrunch

It’s tough to say that a $100 billion business finds itself at a critical juncture, but that’s the case with Amazon Web Services, the cloud arm of Amazon, and the…

Matt Garman taking over as CEO with AWS at crossroads

Back in February, Google paused its AI-powered chatbot Gemini’s ability to generate images of people after users complained of historical inaccuracies. Told to depict “a Roman legion,” for example, Gemini would show…

Google still hasn’t fixed Gemini’s biased image generator

A feature Google demoed at its I/O confab yesterday, using its generative AI technology to scan voice calls in real time for conversational patterns associated with financial scams, has sent…

Google’s call-scanning AI could dial up censorship by default, privacy experts warn

Google’s going all in on AI — and it wants you to know it. During the company’s keynote at its I/O developer conference on Tuesday, Google mentioned “AI” more than…

The top AI announcements from Google I/O

Uber is taking a shuttle product it developed for commuters in India and Egypt and converting it for an American audience. The ride-hail and delivery giant announced Wednesday at its…

Uber has a new way to solve the concert traffic problem

Here are quick hits of the biggest news from the keynote as they are announced.

Google I/O 2024: Here’s everything Google just announced

Google is preparing to launch a new system to help address the problem of malware on Android. Its new live threat detection service leverages Google Play Protect’s on-device AI to…

Google takes aim at Android malware with an AI-powered live threat detection service

Users will be able to access the AR content by first searching for a location in Google Maps.

Google Maps is getting geospatial AR content later this year

The heat pump startup unveiled its first products and revealed details about performance, pricing and availability.

Quilt heat pump sports sleek design from veterans of Apple, Tesla and Nest

The space is available from the launcher and can be locked as a second layer of authentication.

Google’s new Private Space feature is like Incognito Mode for Android

Gemini, the company’s family of generative AI models, will enhance the smart TV operating system so it can generate descriptions for movies and TV shows.

Google TV to launch AI-generated movie descriptions

When triggered, the AI-powered feature will automatically lock the device down.

Android’s new Theft Detection Lock helps deter smartphone snatch and grabs

The company said it is increasing the on-device capability of its Google Play Protect system to detect fraudulent apps trying to breach sensitive permissions.

Google adds live threat detection and screen-sharing protection to Android

This latest release, one of many announcements from the Google I/O 2024 developer conference, focuses on improved battery life and other performance improvements, like more efficient workout tracking.

Wear OS 5 hits developer preview, offering better battery life

For years, Sammy Faycurry has been hearing from his registered dietitian (RD) mom and sister about how poorly many Americans eat and their struggles with delivering nutritional counseling. Although nearly…

Dietitian startup Fay has been booming from Ozempic patients and emerges from stealth with $25M from General Catalyst, Forerunner

Apple is bringing new accessibility features to iPads and iPhones, designed to cater to a diverse range of user needs.

Apple announces new accessibility features for iPhone and iPad users

TechCrunch Disrupt, our flagship startup event held annually in San Francisco, is back on October 28-30 — and you can expect a bustling crowd of thousands of startup enthusiasts. Exciting…

Startup Blueprint: TC Disrupt 2024 Builders Stage agenda sneak peek!

Mike Krieger, one of the co-founders of Instagram and, more recently, the co-founder of personalized news app Artifact (which TechCrunch corporate parent Yahoo recently acquired), is joining Anthropic as the…

Anthropic hires Instagram co-founder as head of product

Seven orgs so far have signed on to standardize the way data is collected and shared.

Venture orgs form alliance to standardize data collection

As cloud adoption continues to surge toward the $1 trillion mark in annual spend, we’re seeing a wave of enterprise startups gaining traction with customers and investors for tools to…

Alkira connects with $100M for a solution that connects your clouds

Charging has long been the Achilles’ heel of electric vehicles. One startup thinks it has a better way for apartment dwelling EV drivers to charge overnight.

Orange Charger thinks a $750 outlet will solve EV charging for apartment dwellers

So did investors laugh them out of the room when they explained how they wanted to replace Quickbooks? Kind of.

Embedded accounting startup Layer secures $2.3M toward goal of replacing QuickBooks

While an increasing number of companies are investing in AI, many are struggling to get AI-powered projects into production — much less delivering meaningful ROI. The challenges are many. But…

Weka raises $140M as the AI boom bolsters data platforms

PayHOA, a previously bootstrapped Kentucky-based startup that offers software for self-managed homeowner associations (HOAs), is an example of how real-world problems can translate into opportunity. It just raised a $27.5…

Meet PayHOA, a profitable and once-bootstrapped SaaS startup that just landed a $27.5M Series A

Restaurant365, which offers a restaurant management suite, has raised a hot $175M from ICONIQ Growth, KKR and L Catterton.

Restaurant365 orders in $175M at $1B+ valuation to supersize its food service software stack 

Venture firm Shilling has launched a €50M fund to support growth-stage startups in its own portfolio and to invest in startups everywhere else. 

Portuguese VC firm Shilling launches €50M opportunity fund to back growth-stage startups

Chang She, previously the VP of engineering at Tubi and a Cloudera veteran, has years of experience building data tooling and infrastructure. But when She began working in the AI…

LanceDB, which counts Midjourney as a customer, is building databases for multimodal AI

Trawa simplifies energy purchasing and management for SMEs by leveraging an AI-powered platform and downstream data from customers. 

Berlin-based trawa raises €10M to use AI to make buying renewable energy easier for SMEs

Lydia is splitting itself into two apps — Lydia for P2P payments and Sumeria for those looking for a mobile-first bank account.

Lydia, the French payments app with 8 million users, launches mobile banking app Sumeria

Cargo ships docking at a commercial port incur costs called “disbursements” and “port call expenses.” These might include port dues, towage, and pilotage fees. It’s a complex patchwork and all…

Shipping logistics startup Harbor Lab raises $16M Series A led by Atomico