All Segments
Segments Timeline
The Shift from Licenses to Subscriptions
Satya Nadella discusses Microsoft's evolution from selling Windows licenses to offering subscription-based services like Microsoft 365. He highlights the low incremental costs associated with SaaS but points out the challenges faced by SaaS companies due to high AI costs, which disrupt traditional business models.
"Microsoft historically has been the greatest software company. You know, you've gone through a transition in the past where you used to sell Windows licenses and discs of Windows or Microsoft and now ..."
The Shift from Licenses to Subscriptions
Satya Nadella discusses Microsoft's evolution from selling Windows licenses to offering subscription-based services like Microsoft 365. He highlights the low incremental costs associated with SaaS but points out the challenges faced by SaaS companies due to high AI costs, which disrupt traditional business models.
"Microsoft historically has been the greatest software company. You know, you've gone through a transition in the past where you used to sell Windows licenses and discs of Windows or Microsoft and now ..."
Navigating New Business Models
Nadella elaborates on the importance of subscription models in budgeting and consumption rights. He explains how Microsoft is positioned to adapt to these changes across various consumer levers, emphasizing the need to explore which pricing structures will be effective in the evolving landscape of AI-driven SaaS.
">> Yeah. So I think that this is a it's a great question because in some sense the business models themselves I think the levers are going to remain similar right people like subscriptions because the..."
Navigating New Business Models
Nadella elaborates on how subscription models remain relevant despite the rising costs of AI. He explains that consumers appreciate the predictability of subscriptions, which provide entitlements to consumption rights. He emphasizes Microsoft's diverse portfolio in consumption subscriptions and the need to explore which models will thrive in the evolving landscape.
">> Yeah. So I think that this is a it's a great question because in some sense the business models themselves I think the levers are going to remain similar right people like subscriptions because the..."