According to an internal memo from Business Insider, Microsoft sales chief Judson Althoff is revamping his unit to focus on AI.
Althoff, the company's chief commercial officer, sent a note to a sales unit called Microsoft Customer and Partner Solutions (MCAPS).
These layoffs have affected many salespeople in Altov's organization, sources said they are familiar with them. The memo did not mention layoffs.
Althoff's memo called “continuous agility” and “reinventing Microsoft and McAps” “frontier AI companies” and outlined five priorities for sales organizations.
- Establish co-pilot across all devices and roles
- Enhance M365 and D365 execution and penetration across all segments
- Meaningful AI design wins
- Grow your cloud platform business by migrating and modernizing your workloads to Azure
- Build a cybersecurity foundation to enable secure AI conversion
In April, Althoff announced plans to cut the number of “solution areas” in its sales team by half for the next fiscal year, which began on July 1st.
BI has obtained a copy of the slide from Althoff's April presentation. According to these slides, the company plans to condense six previous areas into three: AI Business Solutions, Cloud & AI Platform and Security.
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AI Business Solutions will focus on earning “copilot on all devices in every role” and selling Microsoft 365 business applications and Dynamics 365 customer relationship management services, according to a note from July 1.
The Cloud & AI platform includes the company's Azure business, the AI ”Agent Factory” foundry, and the Data Analytics Platform Fabric. The group will focus on frontier AI solutions to migrate and modernize crowd workloads to Azure.
Security focuses on selling Microsoft's security tools. “We spent a lot of time playing defense last year, but now it's time to compete more aggressively,” Altov said, referring to the security solutions area.
This change is due to Microsoft facing increased competition among AI corporate customers from companies such as Openai and Google. Microsoft has the advantage in that many large companies already use other tools, but many of the employees of those companies want the more well-known ChatGPT.
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