forced Microsoft out of the #1 spot in the Cloud Wars Top 10.

Highlights

00:03 — Going to go a little more deeply into the shuffles in the Cloud Wars Top 10, some big shake-ups here. Companies moving up and down. Microsoft, former number one, drops down to number three. Google Cloud, up to number one, Oracle to number two.

00:25 — I want to talk today about my main reasons for moving Microsoft down from number one to number three. The Microsoft tumble here is really centered on its deep cybersecurity flaws that were exposed about 18-24 months ago. The range and scope of these cybersecurity shortcomings and weaknesses outweigh the extraordinary financial revenue and commercial success.

01:38 — The significance of these cyber business shortcomings really came out about just over a year ago, when simultaneously both CEO Satya Nadella and Charlie Bell, who's Executive Vice President of Microsoft's Security business, both came out with public documents outlining how they were going in tandem to totally overhaul Microsoft's cybersecurity business, top to bottom.

02:44 — This came out only after a government watchdog had very publicly flagged these shortcomings that Microsoft had and the results, the disastrous results, that led to some issues in China and some exposures of valuable information and more after that. I covered this extensively through the middle of 2024 and later throughout the year,

04:18 — Microsoft has always said — Nadella has so frequently said — "Cybersecurity is our number one priority." Well, it's easy to say that. Apparently, it's very hard to do that and to live it. And this also then speaks to a lot of the questions I get about, "How do you do these rankings?" I take into account here the customer value that's being created.

05:35 — It's a remarkable time here. And, I just want to emphasize Microsoft's commercial success. Revenue growth has been remarkable. It's by far the biggest cloud company in the world. Its growth rates have been remarkable. Its RPO numbers are great, but this cybersecurity failing just absolutely knocks them out of the running to be the top dog here.

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