Microsoft and Its Modern Management Method: Waffling
April 23, 2025
No AI, just the dinobaby himself.
The Harvard Business School (which I assume will remain open for “business”) has not addressed its case writers to focus on Microsoft’s modern management method. To me, changing direction is not a pivot; it is a variant of waffling. “Waffling” means saying one thing like “We love OpenAI.” Then hiring people who don’t love OpenAI and cutting deals with other AI outfits. The whipped cream on the waffle is killing off investments in data centers.
If you are not following this, think of the old song “The first time is the last time,” and you might get a sense of the confusion that results from changes in strategic and tactical direction. You may find this GenX, Y and Z approach just fine. I think it is a hoot.
PC Gamer, definitely not the Harvard Business Review, tackles one example of Microsoft’s waffling in “Microsoft Pulls Out of Two Big Data Centre Deals Because It Reportedly Doesn’t Want to Support More OpenAI Training Workloads.”
The write up says:
Microsoft has pulled out of deals to lease its data centres for additional training of OpenAI’s language model ChatGPT. This news seems surprising given the perceived popularity of the model, but the field of AI technology is a contentious one, for a lot of good reasons. The combination of high running cost, relatively low returns, and increasing competition—plus working on it’s own sickening AI-made Quake 2 demo—have proven enough reason for Microsoft to bow out of two gigawatt worth of projects across the US and Europe.
I love the scholarly “sickening.” Listen up, HBR editors. That’s a management term for 2025.
The article adds:
Microsoft, as well as its investors, have witnessed this relatively slow payoff alongside the rise of competitor models such as China’s Deepseek.
Yep, “payoff.” The Harvard Business School’s professors are probably not familiar with the concept of a payoff.
The news report points out that Microsoft is definitely, 100 percent going to spend $80 billion on infrastructure in 2025. With eight months left in the year, the Softies have to get in gear. The Google is spending as well. The other big time high tech AI juggernauts are also spending.
Will these investments payoff? Sure. Accountants and chief financial officers learn how to perform number magic. Guess where? Schools like the HBS. Don’t waffle. Go to class. Learn and then implement big time waffling.
Stephen E Arnold, April 23, 2025
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