Windows: A Renewed Focus
In an article reflecting on 25+ years at MS, the author discussed how Windows has evolved over the years and noted MS’s renewed focus on the operating system. CEO Satya Nadella emphasized this shift in priorities, yet some readers remain skeptical of these claims, as evident in their comments.
While it is undeniable that MS owes much of its existence to Windows, the relative importance of this core product has declined as the company diversified. Today, consumers rarely purchase standalone Windows licenses. The days of fervent midnight launches, such as for Windows 95, are long gone. For most users, Windows 11 comes pre-installed on new PCs, with OEMs paying licensing fees to MS. Those building custom PCs might pay £120 for the Home edition or £220 for Pro, but the number of individuals purchasing standalone licenses is minimal.
Historically, MS’s primary revenue from Windows has come from OEM licenses and enterprise agreements. Many enterprises bundle Windows licenses as part of MS 365, which includes Office apps, security tools, and more. Some even adopt Windows 365, running desktops entirely in the cloud via MS’s datacenters.
Shifting Priorities in a Growing Tech Giant
In large companies like MS, Apple, Alphabet/Google, and Amazon, attention and investment flow toward products with growth potential or those facing competitive threats. Over time, the “darling” products change. For instance, Apple evolved from being a Mac-centric company to one dominated by the iPhone, while Google has seen its cloud services grow to represent a significant portion of its business. Similarly, MS has shifted focus from its longtime Windows and Office dominance to emerging areas like cloud computing and artificial intelligence (AI).
Substantial investments often go toward products deemed strategically important, even if profitability is not guaranteed. For example, billions of dollars are being funneled into AI datacenters with the hope of future returns. Some funds categorized as R&D are allocated for incremental improvements to existing products, while other investments focus on long-term research, such as quantum computing, that may not yield immediate results.
Technologies like ClearType, handwriting recognition, and speech recognition were incubated for decades in labs before being integrated into products. Measuring the return on investment (ROI) from such research is challenging. However, neglecting foundational products like Windows—essentially the “old building” of MS—could lead to higher costs in the long run. Ensuring Windows remains robust and reliable may not dramatically expand its user base, but failing to do so risks damaging customer trust.
Windows’ Organizational Turbulence
MS has long been criticized for its internal rivalries, often depicted through satirical portrayals, such as Manu Cornet’s famous “Organization Chart”. When Satya Nadella became CEO, he acknowledged these issues in his book, “Hit Refresh”, and pledged to transform the company’s culture.
While no one deliberately sets out to create a subpar product, internal politics and resource allocation often lead to lapses in quality. For many years, Windows was a flagship product, but its strategic importance has waned. Even as customers adopt Macs or rely on iPhones, MS offers other ecosystem solutions, such as Office and Azure, to maintain its relevance.
In 2018, a reorganization split Windows into two parts: the core OS was placed under the Cloud & AI group, while the UI and apps moved to the Experiences & Devices group, effectively diminishing Windows’ prominence. However, in 2020, Panos Panay reunited Windows client teams with Surface hardware, culminating in the launch of Windows 11. After Panay’s departure for Amazon, his successor, Pavan Davuluri, initially reported to Rajesh Jha before directly reporting to Nadella following Jha’s retirement in 2026.
This organizational shift suggests a renewed commitment to improving Windows’ quality. A poor-quality OS risks alienating enterprise customers, potentially driving them to competitors for security, productivity, and identity solutions.
Lessons from the Past: Trustworthy Computing
MS’s history offers valuable lessons. In the early 2000s, vulnerabilities in Windows, SQL, and Office led to widespread reputational damage due to viruses like Code:Red, Nimda, and ILOVEYOU. In response, MS launched the Trustworthy Computing (TwC) initiative. Development was halted as engineers underwent secure coding training and conducted comprehensive security reviews. This effort prioritized security over new features, resulting in significant updates like Windows XP SP2.
The recent messaging from MS about improving Windows 11 quality echoes the TwC initiative. The company recognizes that failing to address user concerns could erode trust in its broader ecosystem. If Windows falters, enterprises may re-evaluate their reliance on MS’s other offerings.
While TwC was about both "doing the right thing" and "being seen doing the right thing", this renewed emphasis on Windows quality appears to follow a similar path. It’s a necessary move—and long overdue.
Support Independent Reporting
Windows Latest relies on readers like you. Make us your preferred source on Google Discover and Google Search, and help our independent reporting reach a wider audience.
