- Studies that Microsoft lowered AI gross sales quotas have been denied
- The corporate didn’t deny adjusting progress expectations
- Quarterly Azure income continues to be up 40% year-over-year
Microsoft has reportedly lowered its gross sales targets for some AI merchandise after struggling to hit them, in response to The Info.
The corporate’s Azure AI agent-building platform was highlighted as a key product that has been underperforming by way of gross sales.
Nevertheless, Microsoft has denied decrease gross sales quotas, noting that The Info confused progress targets with gross sales quotas.
Is Microsoft struggling to promote its AI merchandise?
“The Info‘s story inaccurately combines the ideas of progress and gross sales quotas, which reveals their lack of information of the way in which a gross sales group works and is compensated,” an organization spokesperson commented.
“Mixture gross sales quotas for AI merchandise haven’t been lowered,” they careworn.
The Info reported that fewer than one in 5 staff from one of many US Azure gross sales models met the earlier progress goal of fifty% for Foundry. One other gross sales unit reportedly had a quota to double Foundry gross sales, however that is believed to have been lowered to 50%.
Though Redmond denied reducing gross sales quotas, the corporate didn’t deny decreasing progress targets, per se. TechRadar Professional requested Microsoft for clarification, however we have now not acquired a response as but.
With this in thoughts, it’s doable that Microsoft, and lots of different firms, might be struggling to shift some AI merchandise because the world works out the place AI is most helpful.
Azure income rose 40% final quarter, reflecting robust demand for cloud-based applied sciences together with AI.
CEO Satya Nadella stated the corporate will “proceed to extend [its] investments in AI throughout each capital and expertise to fulfill the huge alternative forward.”
Microsoft inventory dropped round 3% following the preliminary report, but it surely has since began to recuperate.
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