As Microsoft celebrates its 50th anniversary, it’s a fitting time to reflect on the transformative journey of Microsoft Digital, our team that’s been responsible for powering, protecting, and transforming the digital employee experience across devices, applications, and hybrid infrastructure at the company since the dawn of information technology.
The role of information technology has experienced profound evolution over the past several decades, and Microsoft is no exception. From humble beginnings with Bill Gates and Paul Allen programming and debugging simple applications on MITS Altair 8800s to the current era of sleek, powerful devices (some that even fit in the palm of our hands), the ways we interact with technology have changed dramatically. And just like the internet became an indispensable tool for global commerce and connection, the advent of cloud computing and advances in AI, machine learning, and automation are enabling the next IT revolution, which has already greatly enhanced efficiency and unlocked new possibilities for organizations.
Corporate Vice President Nathalie D’Hers, who has led Microsoft Digital for the past 10 years, talks about how our team’s role has evolved from an information technology-centric one to a modern, AI vision-led, experience-centric engineering organization.
“The main tenets of our modern engineering era in Microsoft Digital are being vision-led; embracing user-centric, coherent design; fostering innovation to drive exceptional employee experiences; and prioritizing our role as Customer Zero to create a blueprint for our customers to follow,” D’Hers says.
Recently, I had the privilege of speaking with D’Hers and some of the other leaders of Microsoft Digital. During our conversations, they shared significant lessons learned and profound experiences from their time at Microsoft. They also provided valuable insights into the future as we look ahead to the next 50 years of IT.
Several themes emerged from my discussions with them; themes that they believe have consistently enabled Microsoft to lead the IT revolution and that will shape the future of technology for the next 50 years.
1. Digital transformation is a continuous journey
Digital transformation isn’t a one-time event; it’s a continuous journey that involves integrating technologies to stay competitive and to improve customer and employee experiences. In the past 50 years, there have been multiple stages of digital transformation, from adopting basic IT systems to embracing modern technologies like AI, machine learning, Internet of Things (IoT), and automation.
The digital transformation of Microsoft spans the entire personal computing revolution, from the early days of DOS and Windows desktops, through to our current era—highlighted by the rise of AI. Our transformation journey can be divided into four major eras:
- On-premises IT (1985 to 2009): Characterized by the setup, operation, and maintenance of onsite physical technology.
- Cloud and culture (2010-2017): Marked by our shift to the Microsoft Azure cloud and a cultural transformation.
- Modern engineering (2017-2020): Focused on modernizing our engineering practices.
- AI (2020-present): Embracing AI to revolutionize IT services and operations.
Most leaders felt that both the era of cloud services and our present era of AI have been pivotal in redefining traditional IT services at Microsoft and that these technologies have revolutionized how we think about IT, making processes more efficient and scalable. And all of them mentioned that no matter what the era, robust security and governance play a critical role and are the backbone to any successful IT organization. Enabling a safe and compliant environment ensure that digital transformation leads to sustainable growth without compromising safety or trust.
Monika Gupta, a partner group engineering manager within Microsoft Digital who has been with Microsoft for nearly 20 years, reflects on her continuous digital transformation journey at the company.
“When I joined Microsoft in 2006, Windows XP was still king, Internet Explorer ruled the web, the mobile revolution was starting, and the idea of cloud computing was a distant dream,” Gupta says. “I’ve had the privilege of working in a variety of roles across Microsoft, witnessing and contributing to some of the most transformative shifts in technology. From making solutions designed for enterprise scale, shipping software securely (on CDs or digitally) to building AI-driven experiences, from on-prem solutions to Azure’s global cloud presence, and from traditional IT solutions to AI copilots reshaping productivity, we have been continuously innovating.”
2. Continuous change means change management is critical
Technological changes can be disruptive, requiring significant shifts in processes, individual behavior, and organization culture. Without effective change management, organizations risk facing resistance from employees, disrupted workflows, and ultimately, failure to fully capitalize on the benefits of new technologies.
Within Microsoft Digital, change management best practices have been critically important to our success.
As Microsoft is a global enterprise with more than 220,000 employees worldwide, it’s imperative that we have a well-executed change management plan in place to help guide our employees each time there is any major transition, starting from piloting to gathering localized feedback from employees across the globe, through to initial deployment and subsequent full adoption of the technology.
This includes several best practices including clearly communicating the reasons for change, providing adequate and thorough training in various forms, and targeted activities post deployment, in addition to using adoption data insights to help our employees adapt to the new technology. Moreover, change management helps to align technology upgrades with organizational goals by ensuring that all stakeholders are involved and that there is a shared vision and collective buy-in for the future. When employees feel prepared and supported, including sufficient active sponsorship from leadership, they are more likely to embrace new systems, leading to greater productivity and innovation.
And we know that a well-executed change management plan fosters a culture of continuous improvement. By building a framework for managing change, we have ensured that our technological shifts are met with less resistance and greater success. Ultimately, successful change management is not just about technology, it’s about enabling the people and processes that will use the technology and ensuring that the focus is on the benefits to the users rather than the technology itself to achieve the desired outcomes of digital transformation.
With a career at Microsoft that spans more than 20 years, Andrew Osten, general manager of Business Operations and Programs for Microsoft Digital, talks about the key role change management plays within Microsoft.
“Dedicated focus on change management is critical within large enterprises when you’re attempting to improve or evolve business processes and drive adoption of technology changes that directly benefit users,” Osten says. “Our team has recognized the importance of investing time and talent into crafting an operationalized adoption program with proven techniques that help accelerate both user and company ROI from our IT investments.”
3. The role of IT is a customer-first experience
One of the most significant lessons learned came from Trent Berghofer, general manager of the Microsoft Digital Modern Support team. It’s a trifecta of sorts, focused on the importance of leading with a customer-centric approach combined with operational excellence and cutting-edge technology.
User experience (UX) and stakeholder satisfaction are central to all of Microsoft Digital’s technology investments. And as the value of customer data, personalized experiences and seamless customer service have become increasingly more important throughout the years, IT systems that support these functions have become integral to business success, boosting not only customer loyalty but revenues as well.
Berghofer, a 26-year veteran at Microsoft, reflects on a time early in his career, when the notion that leading with a customer-centric approach rang loud and clear for him.
“One of the first times I ever did an IT portfolio initiative check-in with an internal VP in our sales organization, I was fortunate that the executive made time for some coaching at the end of our session,” Berghofer says. “His feedback was along the lines of ‘This looks to be great work, but what are you doing to make me and my team successful?’ I’ll never forgot this feedback, and I’ve incorporated this customer first mindset into all my decision making even still today.”
4. People and talent are our greatest asset
A main theme that’s consistent among every leader of Microsoft Digital is that IT isn’t just about technology; it’s about having the right people and culture that’s the cornerstone for success. Investing in people with not only the skills, but also the commitment, to drive innovation and providing opportunities for training and development to upskill employees results in more agility in adapting to technological changes. Something everyone felt is critically important in the ever-changing and evolving IT landscape.
The journey within Microsoft Digital has been remarkable not just because of all the technological advances, but also because of the unique culture of the organization. Because the role of IT continues to evolve, it’s important that you have people who are willing to evolve as well. Having a good mix of individuals with strong technical skills, problem-solving abilities, adaptability, and effective communication is critical. Cultivating a culture of collaboration, continuous learning, and innovation, and where employees feel empowered to experiment, fail fast, and grow from their mistakes are all important factors in a successful IT organization.
D’Hers, who has not only led Microsoft Digital and the teams that preceded it for the past decade but is also a 25-year veteran of Microsoft, characterizes the organization’s culture as one that exudes a collective enthusiasm and provides a winning combination of passion, resilience and grit, and teamwork.
“Beyond the technology, what has made this journey truly special is the culture we’ve created together,” D’Hers says. “It’s a shared passion for solving the complex challenges, the resilience we have to embracing constant change, and the camaraderie we have that can turn even the hardest of issues into learning experiences and growth.”
5. AI is the future of IT
As we celebrate 50 years of IT at Microsoft, it’s exciting to envision the future, especially as AI continues to transform the world and our lives. It will no doubt play a critical role in the function and future of IT. Together with continuous improvement (CI), AI and machine learning will enable greater automation and self-serve functions, meeting users where and how they work, and will be central to improving efficiency and enhancing customer experiences.
From AI-powered agents integrated with Microsoft 365 Copilot, to chatbots providing customer support to AI-driven supply chain optimization, the ongoing shift toward better automation is not only reshaping IT, but every single industry from manufacturing, retail, to even healthcare.
As Monika Panpaliya, partner director of the Product Management team and the most recent member of the Microsoft Digital leadership team, shares, for instance, how AI agents are poised to transform IT.
“Agentic AI can act as an intelligent companion that can autonomously reason and adapt to changing environments,” Panpaliya says. “It operationalizes decision-making and collaborates with humans to enhance efficiency and effectiveness across various domains, such as network security, helpdesk support, and HR processes.”
Fifty years of IT evolution at Microsoft has taught valuable lessons about agility, innovation, people and culture, and the critical importance of technology in maintaining competitive advantage. There is no doubt that just like the last five decades, IT will continue to evolve, and companies who want to continue to succeed will need to remain adaptable, constantly exploring new technologies while ensuring they align with the changing needs of their workforce and customers. Our digital transformation journey has been marked by continuous innovation, and the next 50 years promise to be just as transformative!
Here are some of the key learnings we’ve had on our journey as the company’s IT organization:
- IT has drastically evolved over the years and is no longer considered “just a support function” like it once was. It’s now a fundamental driver of business success.
- Agility, innovation, and having the right people are key to running a successful IT organization.
- Make sure your workforce has the skills to keep pace with technological advancements. Investing in people is critical!
- Learn more about our digital transformation journey here at Microsoft.
- Find out how we’re powering a generational shift in IT at Microsoft with AI.
- Microsoft Read our guide for executives on deploying and driving adoption of Microsoft 365 Copilot.
- Check out how we’re embracing this new ‘agentic’ moment at Microsoft.
- Learn how we serve as the company’s Customer Zero.
