Microsoft CEO Satya Nadella Warns Employees About AI Era Challenges, Hints Platform Shift Underway
Microsoft CEO Satya Nadella has reportedly expressed concerns about the company’s future, citing Digital Equipment Corporation (DEC) as an example. He is said to be 'haunted' by DEC’s failure to adapt to technology shifts. Nadella allegedly warned employees about staying productive in the AI era, and noted that 'some of the margin that we love today might not be there tomorrow.'
New Delhi, September 20: Microsoft CEO Satya Nadella has reportedly shared his concerns about the future of the company during a recent employee-only town hall. He is said to be "haunted" by the story of Digital Equipment Corporation (DEC), a once-powerful tech firm that disappeared after failing to adapt to major industry changes. Nadella allegedly used DEC as an example to warn employees about the risks of falling behind in technology trends. His remarks are seen as a reminder for Microsoft to stay responsive in the evolving AI industry.
As per a report of The Verge, Nadella said, "Our industry is full of case studies of companies that were great once, that just disappeared. I’m haunted by one particular one called DEC." Nadella was answering a question about changes in Microsoft’s workplace culture, but his response allegedly revealed deeper concerns about the company’s future in the AI era. He is said to be worried about repeating mistakes from the past, like those made by Digital Equipment Corporation. DEC, once a leader in minicomputers with its PDP series in the 1970s, lost ground to competitors like IBM. H-1B Visa Fee Hike: Which Tech Companies Could Face Major Challenges From Donald Trump’s USD 1,00,000 H-1B Visa Fee?
As per reports, DEC is said to have made errors by focusing on its own Virtual Address eXtension (VAX) architecture system rather than adopting the emerging Reduced Instruction Set Computing (RISC) architecture. Nadella’s warning reportedly came after a UK employee mentioned that Microsoft had recently "felt markedly different, colder, more rigid, and lacking in the empathy we have come to value."
Nadella's first computer was reportedly a VAX, and he dreamed of working at DEC. He added, “Some of the people who contributed to Windows NT came from a DEC lab that was laid off.” Nadella didn’t fully respond to concerns about Microsoft’s cultural changes, but he reportedly acknowledged that the company’s leadership team "can do better and we will do better." TCS Expands Its AI Platforms and Solutions With NVIDIA Accelerated Computing for Retailers To Drive Operational Efficiencies, Innovation and Growth.
Although productivity software still brings in about one-fifth of Microsoft’s revenue, he warned that "some of the margin that we love today might not be there tomorrow." It can be seen as a warning to Microsoft employees that a major platform shift is underway to bring significant changes within the company.
(The above story first appeared on LatestLY on Sep 20, 2025 04:15 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).