On today's Microsoft post-earnings conference call, a financial analyst with Evercore ISI had the opportunity to ask CEO Satya Nadella a simple question about the company's mega-important cloud business.
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Microsoft CEO Satya Nadella told an analyst that Wall Street thinks too small: 'That's not how it works' (MSFT, AMZN)
Microsoft CEO Satya Nadella says that Wall Street judges them 'by what we've done for you lately,' but 'that's not how it works.'
Microsoft CEO Satya Nadella
The generational shift
Nadella prefaced that comment by noting that, rather than think about the short-term view of the product's competitive stance today. Microsoft is really in markets like cloud computing for the long haul. If you focus too hard on the present, he says, you miss the chance to dominate whatever comes next.
"I don't view it that narrowly, quarter to quarter or even year to year. And these are generational opportunities that's at play when it comes to the intelligent cloud or what's happening in augmented reality. Either one of those things, I think if we started viewing it quarter to quarter or year to year we'll completely miss the trend," said Nadella.
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Augmented reality, the field of technology for digital imagery projected into the real world, is another big, long-term bet for Microsoft, that the company thinks could be bigger than the smartphone. And while Microsoft Azure is generating revenue today, Microsoft's own HoloLens isn't yet on the broader market, meaning it'll be a while before it's more than the tiniest blip on the balance sheet.
In general, Nadella says, Microsoft is investing in areas with "
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