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AdvertisementVMware customers report seeing massive price increases since Broadcom acquired VMware late last year, with some paying as much as 10 times as much for the same services. VMware price hikesDave Russell, senior vice president and head of strategy at Veeam, said his company saw a 300% price increase in the VMware products it's using. Hinkley said CloudBolt's customers have seen VMware price increases ranging from 140% to 600%. Hinkley said longtime VMware customers have spent years developing code and automation processes in their IT infrastructure specifically for running VMware products. Similarly, Virtuozzo CEO Alex Fine said over 200 providers approached his company as a result of the price increases.
Persons: , Craig Hinkley, Rick Vanover, David Rowe, Dave Russell, he's, Russell, Hinkley, they'd, Forrester, Rowe, We've, Steve Tuck, Renee Wells, Wells, Alex Fine, We're, Fine, Rajiv Ramaswami, Ramaswami, Rosalie Chan, Ashley Stewart Organizations: VMware, Service, Broadcom, VMware's, Microsoft, Gartner, Oxide Computer, Rimini, Dell, Nutanix Locations: Rimini, rosal
AdvertisementBig tech companies are forecast to spend $1 trillion on data centers, real estate, chips and other gear to build AI models, tools and products. AdvertisementSome big tech companies have already whittled away a large chunk of their cash reserves chasing this AI trend. For more than a year, the assumption has been that generative AI will stoke a massive wave of new demand. What if that demand turns out to be weaker than expected? A major piece of evidence he shared was about demand for Microsoft's 365 Copilot service.
Persons: , Ashley Stewart, I've, Ashley, Keith Weiss, Morgan Stanley, Weiss, Andy Jassy, Sundar Pichai, Satya Nadella, BI's Ashley Stewart, Nadella Organizations: Service, Business, pharma, Big, Microsoft, stoke, Amazon, Google, CIO
A pharmaceutical company stopped using Microsoft's Copilot AI tool due to high cost and low value. The company used Office 365 Copilot for 500 staff, and found it comparable to middle school presentations. Microsoft is considering repackaging 365 licenses to better monetize AI features amid record capex. That's exactly what happened when an IT executive at a pharmaceutical company tried out Microsoft's Copilot AI features. The chief information officer of this pharma company paid extra to have 500 employees use Office 365 Copilot in the fourth quarter of 2023 and first quarter of 2024.
Persons: Organizations: Microsoft, Service, pharma, Business
Microsoft laid off a diversity, equity, and inclusion team, citing "changing business needs." Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementAfter Microsoft laid off an internal team focused on diversity, equity, and inclusion, a team leader blasted the company for a lack of investment in these efforts. "True systems-change work associated with DEI programs everywhere are no longer business critical or smart as they were in 2020," a leader of the team wrote in an email sent to thousands of employees, which was viewed by Business Insider. This story is available exclusively to Business Insider subscribers.
Persons: George Floyd, Jeff Jones, Organizations: Microsoft, Service, Business
Read previewA newly unearthed interview from the 1980s features Bill Gates talking about one of the earliest iterations of artificial intelligence. This story is available exclusively to Business Insider subscribers. "The Interviews on these radio episodes provided a contemporary account of the dawn of the microcomputer revolution — not tainted by nostalgia," Savetz told Business Insider in an email. "In the extreme case," Gates said in the 1984 interview, "once software gets 100% soft, then we will have achieved human level of intelligence. AdvertisementSpokespeople for Gates and Microsoft did not return a request for comment from BI.
Persons: , Bill Gates, Kay Savetz, Savetz, Gates, you've, you'll, Insider's Ashley Stewart Organizations: Service, Microsoft, Business, Census Bureau, Gates
Read previewAn internal Microsoft tracking tool has revealed which executives AI CEO Mustafa Suleyman is working with most during his first few months on the job. Microsoft in March hired Suleyman , the head of startup Inflection AI and a cofounder of AI pioneer DeepMind, to be CEO of a newly formed Microsoft AI group. The organization is responsible for consumer AI products such as Microsoft's Copilot AI chatbot and the Bing search engine. Kevin Scott, Microsoft chief technology officerKevin Scott MicrosoftKevin Scott is Microsoft's chief technology officer and executive vice president of AI. Caitlin McCabe, CEO chief of staffMcCabe is Satya Nadella's chief of staff.
Persons: , Mustafa Suleyman, Suleyman, Karén Simonyan, Yusuf Mehdi, Microsoft Nick Adams, Reuters Mehdi, Kevin Scott, Kevin Scott Microsoft Kevin Scott, He's, Scott, Kevin, Satya Nadella, Amy Hood, Phillip Faraone, Hood, Rajesh Jha, Jha wasn't, Jha, Caitlin McCabe, McCabe, Satya Nadella's, She's, Nadella, Jon Tinter, Chris Young, Tinter Organizations: Service, Microsoft, Business, Reuters, OpenAI
Amazon employees criticized the company for holding a private Foo Fighters concert for leaders. Amazon has laid off more than 27,000 people since late 2022 and enforced a strict office mandate. Employees said the exclusive event for senior leaders came amid cuts to their own morale budgets. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAmazon employees are roasting the company for apparently holding a private Foo Fighters concert for senior leaders after a tough couple of years of layoffs and cost-cutting, according to internal Slack messages viewed by Business Insider.
Persons: Organizations: Foo Fighters, Employees, Service, Business
Fewer Microsoft employees believe they get a "good deal: from working there. The annual "Employee Signals" survey showed a drop from 69% to 62% in positive responses. AdvertisementFewer Microsoft employees believe they are getting a "good deal" by working at the company, according to results of annual surveys viewed by Business Insider. In Microsoft's annual poll called "Employee Signals," 62% of employees this year answered favorably to a question about whether they get a "good deal at Microsoft (i.e. This story is available exclusively to Business Insider subscribers.
Persons: Organizations: Microsoft, Service, Business
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewAmazon employees are roasting the company for apparently holding a private Foo Fighters concert for senior leaders after a tough couple of years of layoffs and cost-cutting, according to internal Slack messages viewed by Business Insider. However, a blog post from May 30 suggests the company brought the Foo Fighters — CEO Andy Jassy's favorite band — to a private event for director- and vice-president-level employees. Related storiesThe post and the Slack messages indicate the concert was part of an event called Ops Live for senior leaders in Amazon's global fulfillment network. Level 8, or L8, employees are among the most senior at the company.
Persons: , Andy Jassy's, Ashley Stewart Organizations: Service, Foo Fighters, Business, Amazon
Oracle plans to phase out its advertising business, with no "catch-all date" for the transition. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementOracle executives in an internal meeting said much remains to be decided about its plans to shutter its advertising business, according to audio reviewed by Business Insider. Oracle this week disclosed plans to wind down the business, which brought in just $300 million in the most recent fiscal year, down from $2 billion in 2022. This story is available exclusively to Business Insider subscribers.
Persons: , Larry Ellison's Organizations: Oracle, Meta, Service, Business
The plan focuses on Microsoft 365, a popular suite of productivity software used by thousands of businesses. This is a big risk for the company because Microsoft 365 has been an important source of revenue and growth, even without fancy new AI capabilities. The problem was that Microsoft salespeople started to pitch E5 as the last business software suite that customers would need to buy. AdvertisementA "spiritual successor"The generative AI boom, and Microsoft's early lead here, have increased the chances that a new 365 bundle will emerge soon. Microsoft has new AI tools that it can integrate with 365 and use that to persuade customers to upgrade their software bundle.
Persons: , Satya Nadella, Jared Spataro's, Microsoft salespeople, it's, Slack Organizations: Service, Microsoft, Business, Microsoft's Productivity, Processes, Sharepoint, European Commission, EU Locations: Capex
The plan focuses on Microsoft 365, a popular suite of productivity software used by thousands of businesses. This is a big risk for the company because Microsoft 365 has been an important source of revenue and growth, even without fancy new AI capabilities. The problem was that Microsoft salespeople started to pitch E5 as the last business software suite that customers would need to buy. AdvertisementA "spiritual successor"The generative AI boom, and Microsoft's early lead here, have increased the chances that a new 365 bundle will emerge soon. Microsoft has new AI tools that it can integrate with 365 and use that to persuade customers to upgrade their software bundle.
Persons: , Satya Nadella, Jared Spataro's, Microsoft salespeople, it's, Slack Organizations: Service, Microsoft, Business, Microsoft's Productivity, Processes, Sharepoint, European Commission, EU Locations: Capex
Microsoft AI CEO Mustafa Suleyman's ghostwriter joined the company's new AI organization. Microsoft hired Suleyman in March to lead the consumer artificial intelligence group. AdvertisementMicrosoft AI CEO Mustafa Suleyman's ghostwriter landed a job on staff in the company's new consumer artificial intelligence organization, according to an internal organizational chart. Microsoft in March hired Suleyman, head of startup Inflection AI and cofounder of AI pioneer DeepMind, to be CEO of a newly formed "Microsoft AI" group. The organization is responsible for consumer AI products such as Microsoft's Copilot AI chatbot and the Bing search engine.
Persons: Mustafa Suleyman's, Suleyman, Michael Bhaskar, , Mustafa Organizations: Microsoft, Service, Business
Microsoft in March hired Suleyman, head of startup Inflection AI and cofounder of AI pioneer Deepmind, to be CEO of a newly formed "Microsoft AI" group. Here are top players at Microsoft AI:AdvertisementKarén Simonyan, CVP and chief scientistKarén Simonyan Inflection AI Inflection AISimonyan is one of three Inflection co-founders. Kya Sainsbury-Carter, CVP Microsoft AdvertisingSainsbury-Carter is an 18-year veteran of Microsoft. Qi Zhang, CVP Microsoft AI APRDZhang is based in Beijing and has been at Microsoft for 22 years. Chris Daly, VP strategy and business operationsDaly joined Microsoft AI in May after spending about nine years in investment banking at Robey Warshaw.
Persons: , Mustafa Suleyman, Suleyman, Karén Simonyan, Karén, Simonyan, Satya Nadella, Rob Cromwell, Cromwell, Gabor Hirschler, Hirschler, Mikhail Parakhin, Jordi Ribas, Bing, Rukmini Iyer, Iyer, Rajesh Sundaram, Sundaram, Ali Akgun, Panos Panay, Sainsbury, Carter, Qi Zhang, Zhang, Mike Davidson, Davidson, Michael Bhaskar, Bhaskar, DeepMind, Chris Daly, Daly, Robey Warshaw Organizations: Service, Microsoft, Business, Bing, Enterprise, Microsoft Edge, Carter, Microsoft Advertising, Pacific Research, Development, Twitter, NBCNews.com, Walt Disney Internet, Microsoft AI Locations: Copilot, Beijing, Asia, Pacific, London
Microsoft is cutting hundreds of jobs from the Azure business, sources say. The layoffs impact Azure for Operators and Mission Engineering teams. AdvertisementMicrosoft is cutting hundreds of employees from its Azure cloud business, according to people familiar with the situation. One of the people estimated the Azure for Operators layoffs involved as many as 1,500 job cuts. This story is available exclusively to Business Insider subscribers.
Persons: Organizations: Microsoft, Mission Engineering, Service, Business
Microsoft cut hundreds of jobs in its Azure cloud business on Monday, sources told Business Insider. Jason Zander in an email memo says the company's focus is to "define the AI wave." The changes include halting certain Azure cloud services and reorganizing teams. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . This story is available exclusively to Business Insider subscribers.
Persons: Jason Zander, , Zander Organizations: Microsoft, Business, Service
Microsoft on Monday cut hundreds Azure jobs to focus on AI investments, Business Insider reported. An internal memo said a focus to "define the AI wave" was behind the changes. Microsoft isn't giving up, according to an internal memo detailing cuts in other parts of the company's operations. Business Insider broke the news on Monday that Microsoft is cutting hundreds of jobs from its Azure cloud business. Executive Jason Zander blamed the cuts on Microsoft's need to purse AI investments, according to an internal memo obtained by BI.
Persons: , Jason Zander Organizations: Microsoft, Business, Service, BI
Read previewMicrosoft is planning AI computing resources for a LinkedIn Copilot, according to an internal document. The planning document, viewed by Business Insider, lists "LinkedIn" among existing Copilots like GitHub, Security, and Azure. It's unclear what the reference to LinkedIn Copilot specifically means. However, the AI computing resources planned for LinkedIn Copilot in the document suggest bigger plans than the existing AI tools, a person familiar with the planning said. There has so far been no mention of a LinkedIn Copilot.
Persons: , Elon Musk Organizations: Service, Business, Microsoft, LinkedIn Copilot, LinkedIn, Elon, Meta
That was the promise of Cerner, the medical-records company Oracle bought in 2021 for $28.3 billion — Oracle's biggest acquisition. At the time, Cerner managed the electronic health records for a quarter of all American hospitals, including those run by the Pentagon and the Department of Veterans Affairs. Larry EllisonCerner's electronic records, in short, were a deadly disaster for the VA. Never mind the futuristic, AI-driven healthcare system Ellison envisioned. In 2015, it beat out Epic, its main competitor, for a $4.3 billion contract to handle electronic health records for the Defense Department. It had agreed to process tens of millions of crucial medical records, but it couldn't handle the subsequent deluge of data.
Persons: Larry Ellison's, Ellison, Cerner, I'm, Larry Ellison, Neal Patterson, Cerner's, Patterson, Ellison's, they're, David Shulkin, Margaret Albaugh, Cerner couldn't, Charlie Bourg, , Larry, Marc Benioff, Ellison protégé, Mike Wilson, David Agus, oncologist, Agus, he'd, Steve Jobs, Sensei, We've, Georges De Keerle, Cerner —, hadn't, Mike Sicilia, Sicilia, Oracle, Anthony Jones Jr, Jones, Donald Remy, didn't, Seema Verma, Neil Evans, Sara Vaezy, Ed Meagher, haven't, Charlie Monroe —, it's, Charlie Bourg —, Bourg, Charlie Monroe, Monroe, Cathy McMorris Rodgers, grandkids, We're, there's Organizations: Oracle's, Oracle, Pentagon, Department of Veterans Affairs, Cerner, RAND Corporation, RAND, Big Tech, GE, Siemens, Cerner Corporation, Defense Department, Department of Defense, Business, Spokane, Ellison Institute of Technology, Microsoft, Agency, Health, Amazon, Veterans ' Affairs, Oracle Health, Navy, Columbus VA, BI, Life Sciences, Intermountain Health, UPMC, DOD, Seabees Locations: Las Vegas, antiaging, Silicon Valley, Spokane , Washington, Cerner, VistA, Bourg, Washington, Sicilia, Ohio, Columbus, Providence, Spokane, Monroe, CloudWorld
Selipsky's three years as AWS CEO were marked by mixed results. AdvertisementHe steered through some of the cloud business' slowest growth rates, largest layoffs, and biggest challenges in the artificial intelligence space. AdvertisementAmazon's generative AI service Bedrock was delayed after originally being scheduled to launch in the fall of 2022, the person said. Garman was once considered a frontrunner to replace former AWS CEO Andy Jassy in 2021 when Jassy took over as Amazon's CEO. Some insiders referred to Selipsky as "just a sales guy" and "uninspiring," as the cloud leader faced unprecedented competition in generative AI.
Persons: , Adam, Selipsky, shakeup, Patrick Neighorn, Matt Garman, Garman, Andy Jassy, Jassy, Amazon, Ashley Stewart Organizations: Service, Web Services, Business, AWS, Amazon, BI, Rivals Microsoft, Google
Microsoft plans to restart performance-based raises for some employees. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAfter freezing salaries last year, Microsoft plans to restart performance-based raises for some employees during this year's review cycle that started in April. The plans have not been announced companywide, but cloud boss Scott Guthrie told employees at an April 30 employee meeting that merit raises will increase this year, according to two people present. Microsoft calls the performance-based raises "merit increases."
Persons: , Scott Guthrie Organizations: Service, Microsoft, Business
In fact, Business Insider has learned, Gates has been quietly orchestrating much of Microsoft's AI revolution from behind the scenes. The company, Nadella promised, would "continue to benefit from Bill's ongoing technical passion and advice to drive our products and services forward." According to two executives, Gates' memo treated as gospel, sparking Microsoft's push to take the lead in the AI arms race. Now, it seemed, OpenAI might offer Microsoft a way to help forge the AI future that Gates had long envisioned. According to two executives, Gates' words were treated as gospel, helping spark Microsoft's push to take the lead in the AI arms race.
Persons: Bill Gates, Satya Nadella, Gates, Siri, They're, Clippy, Copilot, That's, Sam Altman, — Gates, Satya, Nadella, Steve Ballmer, Peter Thiel bashed, Bill, Melinda, Jeffrey Epstein, Nadella's, Rather, OpenAI, Kevin Scott, Scott, Altman, you'll, OpenAI's, Bing —, Bing, Steve, Sam, Kayla Wood, Frank Shaw, Shaw, , Charles Lamanna, Jaime Teevan, Jeff Teper, Charlie Bell —, He's, Forbes, Mustafa Suleyman, DeepMind, Bill G, Suleyman, aren't, hadn't, there's, Ashley Stewart Organizations: Microsoft, Agents, Business, Google, Wired, Street Journal, Rover, Steve Jobs, OpenAI, Amazon Web Services Locations: Tay, Gates, Clippy, Washington, Redmond , Washington, Seattle
Satirical news website The Onion was sold to a company called Global Tetrahedron. Global Tetrahedron is also the name of a fictional evil megacorporation in a long-running Onion gag. But it's a real company, and Twilio founder Jeff Lawson appears to be behind it. AdvertisementJeff Lawson, the cofounder of cloud computing company Twilio, appears to have purchased the satirical news website The Onion from G/O Media. When asked whether he had purchased The Onion, Lawson played coy.
Persons: Jeff Lawson, , Lawson, Jim Spanfeller, Katie Robertson, Spanfeller, coy, O Organizations: Service, O, New York Times Locations: San Francisco, Chicago
Microsoft blocks access to Perplexity AI, a major Azure OpenAI customer, for at least some staff. Perplexity AI uses Microsoft's Azure OpenAI to power its AI chatbot search engine. Microsoft is blocking employee access to Perplexity AI, one of the largest customers of its Azure OpenAI service, according to two people familiar with the matter. Perplexity's product is an AI chatbot search engine that provides conversational answers. It's powered by Microsoft's Azure OpenAI service, which helps companies like Walmart and JPMorgan Chase build generative AI into their operations and products.
Organizations: Microsoft, Walmart, JPMorgan Chase, Cola, Business
Microsoft internally targets 1.8 million GPUs by December 2024, a document shows. Microsoft likely is buying and using several different GPUs for different tasks. Microsoft has an internal target to amass 1.8 million AI chips by the end of 2024, according to a document viewed by Business Insider. Microsoft is trying to make generative AI faster, better, and cheaper, but the effort relies heavily on Microsoft buying the chips, graphic processing units, primarily from designer Nvidia. The document suggests that Microsoft plans to triple the number of GPUs it has in 2024.
Organizations: Microsoft, Business, Nvidia
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