Microsoft CEO Satya Nadella Believes in the Deflationary Power of Software

At a time of rising interest rates and rampant inflation, Microsoft Chief Executive Officer Satya Nadella remains confident about the deflationary power of software companies — especially his own. The CEO believes that given the current economic difficulties, cloud technology can help companies of all sizes do more with fewer resources, providing crucial cost savings. For its part, Microsoft has long been viewed as a “recession-proof” company, but even the big tech titan has succumbed to layoffs and hiring restrictions.

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Cloud computing has been booming for more than a decade and is projected to eclipse the $1 trillion mark by 2030. With a market share of roughly 21%, Microsoft trails only Amazon in cloud computing dominance, with the next closest competitor — Google Cloud — holding about 7% of the market. Its cloud computing division accounted for nearly 36% of its revenue in 2021, and much of its growth came amidst the COVID-19 pandemic in 2020-21.

Nadella sees plenty of opportunity for cloud growth in Europe, where many companies need new or updated infrastructure to remain competitive and contend with the energy crisis. And to stay ahead of a potential future recession, the CEO says his company practices what it preaches, using its own solutions to increase efficiency.