Microsoft's cloud chief asks leaders to find 20% in cost cuts
The directive comes as Azure grows and Microsoft increases AI infrastructure spending, putting pressure on the company to expand capacity while protecting cloud margins.
By Ryan Merket · Published
Primary source: The Information
Why it matters
Microsoft is scaling Azure and AI infrastructure while facing pressure on cloud margins. The reported 20% target makes cost reduction an operating priority, but its dollar baseline and the budgets it covers remain unclear.
Microsoft Cloud + AI chief Scott Guthrie has asked leaders in the cloud organization to find 20% cost cuts, The Information reported Tuesday. The request sets a cost-reduction target as Azure grows and the infrastructure supporting cloud and AI workloads pushes costs higher and cloud margins lower.…