Microsoft Corp. BUY Company Update : Enterprise Software

May 16, 2019 Microsoft Corp. BUY Company Update : Enterprise Software

Labor-atory #18 - review of job openings new data

This report is our eighteenth in a series of reviews of Microsoft’s Jay Vleeschhouwer open positions. We compile and compare the positions shown in [email protected] the “careers” website by job functions, e.g., engineering, sales, 646-442-4251 services; by region & country, and by products, brands, and other selected keywords. In addition, in the “special assignments” section, we show a selection of interesting or indicative positions, Stock Symbol NASDAQ: MSFT and in the “related companies” section we show positions at Current Price $128.93 Microsoft pertaining to our other coverage companies that sell to 12 mos. Target Price $145.00 and/or partner with Microsoft. For a comparable review of the jobs Market Cap $825,406.9 mln data at those companies, e.g., Adobe, Autodesk, PTC, et al, see Shares O/S 7,744.0 mln too our May 9th, 2019 industry report, “ Labor-atory #17.4: nice Avg Daily Vol. (3 mos.) 25,424,792 shs. work if you can get it”. 52-Week Price Low/High $71.70 - $111.15 The current compilation shows combined positions for software P/B 12.0x engineering, hardware engineering, sales, and services (i.e., Price/ FCF 0.0x consulting services, customer service & support) of about 2,635, Fiscal Year End Jun as compared with about 3,400 six months ago and about 4,150 a year ago; the highest total to date, since we began these ROE 37% reviews in 2012, was in late 2015 (about 4,950), driven at the Dividend / Yield $1.68 / 1.3% time by large increases in sales and services. A reasonable EPS interpretation of the recent decline is that many of the large numbers of prior openings, particularly in sales, were filled (and FY 19E FY 20E FY 21E Microsoft is absorbing the capacity). Microsoft too now (by the

Q1 (Sep) $1.14A $1.12E $1.29E way) has a “ customer success” group, as we’ve seen at a number Q2 (Dec) 1.08A 1.25E 1.41E of our other companies. Q3 (Mar) 1.14A 1.19E 1.33E The number of software engineering positions, always the Q4 (Jun) 1.18E 1.33E 1.45E largest category, was down from six months and a year ago, $4.54E $4.89E $5.48E though software engineering still accounts for the majority of P/E 28.4x 26.4x 23.5x the combined engineering-sales-services positions counted here. The next largest category, services, was also down from six 125 months and a year ago; enterprise services revenues have grown 120 for the past seven quarters, and we expect this business to 115 increase in FY19, FY20, and FY21, with a stable to improving 110 gross margin. as might be expected, Azure-ness is pervasive 105 in the data. The positions for LinkedIn are counted and shown 100 separately from the Microsoft careers website (see below). 95 As of the end of FY18, Microsoft had about 131,000 employees 90 (vs. 124,000 at FY17, 114,000 at FY16, 118,000 at FY15 and 85 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 128,000 at FY14), including 78,000 in the U.S. (up 5,000 from Microsoft Corp. FY17) and 53,000 internationally (up 2,000). There were 42,000 in R&D, up 2,000, vs. the increase of 3,000 in FY17, and 36,000 in sales & marketing, up 2,000 vs. the increase of 5,000 in FY17 (which included the acquisition of LinkedIn). There were 42,000 combined in operations, including manufacturing, distribution, product support and consulting services, up 3,000, and, 11,000 in G&A (flat, vs. the 1,000 increase in FY17).

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For the TTM ending 3Q19, total R&D expenses were $16.296 billion, vs. $14.307 billion for the TTM ended 3Q18, or slightly more than $15.0 billion excluding LinkedIn, vs. $13.1 billion in the year-earlier TTM, when we exclude LinkedIn's direct expenses. Sales & marketing expenses for the TTM were $18.021 billion, vs. $17.065 billion, or about $15.4 billion vs. $14.7 billion when we exclude LinkedIn. For FY19, we’re estimating R&D of $16.586 billion, up almost 13%, or $15.3 billion, up 13%, excluding LinkedIn, and sales & marketing of $18.596 billion, up 6.5%, or almost $16.5 billion, up 5%, excluding LinkedIn.

The current number of software engineering (“SE”) positons was about ≈1,530, vs. ≈1,890 six months ago, ≈2,300 a year ago, and ≈1,400 three years ago.

Americas software engineering (≈1,250) continued to account for the preponderance of the total software positions (over 80%). The current number of positons happens to be similar to the 2012-2017 U.S. average of ≈1,275. The variances over time in these positions has often been tied to the timing of new product launches or major updates (as we saw with the Windows 10 launch a few years ago) and to the initiation of new projects or programs, plus other factors, such as seasonality.

The number of EMEA software engineering positions (now slightly more than 100), usually the lowest of the major regions, has been more or less flat over the past six months, though down by a third from a year ago. The open positions by the many countries that comprise EMEA has clearly varied over time, i.e., France, Ireland, Germany and the U.K. have declined over the past year, while Israel, with the majority still of software engineering positions in the region, has been stable (Israel has the fourth-highest number of SE openings, after the U.S., India, and China). Aside from the aforementioned countries, we counted a handful of SE positions in each of Czech Republic, Estonia, Norway, and Switzerland.

The number of Asia software engineering positions (≈170) was down by more than a fourth from SI months ago and by more than a third from a year ago; the 2012-2017 SE average in Asia had been ≈200. The largest change from six months ago was the decline in India, though it still had the majority of SE positions in the region, followed by China (which was down slightly from six months ago and a year ago). Australia, Japan and Taiwan each have only a handful of SE positions.

The number of sales positions – now about 245 – was the lowest we’ve counted to date. The total declined by almost half from six months ago and by more than three-fourths from a year ago. The 2012- 2017 average had been about ≈940. Each of the three regions declined from six months ago and a year ago; the Americas appear to have had the largest proportionate decline from a year ago and Asia the smallest.

As it turns out, EMEA (≈100) has had the largest number of sales openings over the past six months. Within EMEA, Ireland happens to have had the largest number by country; France and Germany were down from six months ago, while the U.K. was slightly higher.

In Asia (now about 70, down from about 100 six months ago and more than 100 a year ago), Japan happens to have the largest number of sales openings. Six months ago, China had the largest number in the region, followed by Australia, but these have since declined significantly (China by more than half, Australia by almost three-fourths from an unusually high number at the time), perhaps, or probably, reflecting the filling of many of those prior openings; it had been evident from prior reviews that the company had begun paying more attention to Australia in terms of both sales and services capacity).

Hardware engineering remains a small category, though the development of hardware brands (HoloLens, Surface, Xbox) and silicon development are nonetheless strategically important. The number of positions (≈170) more than doubled from six months and nearly doubled from a year ago. Hardware engineering encompasses a variety of functions, including product design activities (e.g., IC engineering, mechanical engineering, etc.) as well as a number of related production and operations functions.

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In a related search of “supply chain & operations management”, we found ≈20 positions, down by about half from six months ago and by more than half from a year ago. It is here, in supply chain & operations management, where Microsoft has become an important PLM customer (to manage its various hardware businesses) and as well in managing the hardware in its data centers (see too our May 1st, 2019 industry update, “PLM in flux”).

The number of services positions – now about 685 – was down by almost a third from six months ago and from a year ago. The peak in services positions occurred in late 2015 (≈1,780).

For FY19, we’re estimating enterprise services revenues of $6.18 billion, up 6% (with a 31.5% gross margin).

The LinkedIn “careers” website shows ≈630 positions globally (up from ≈550 six months ago and about ≈550 a year ago), including ≈360 in the U.S., followed by Ireland (≈110) and India (≈40). We counted about ≈200 sales positions (vs. ≈225 six months ago) and ≈150 engineering positions (vs. ≈140 six months and ≈110 a year ago). For FY19, we’re estimating LinkedIn R&D expenses of $1.28 billion, vs. $1.19 billion in FY18, and sales & marketing expenses of $2.12 billion, vs. $1.79 billion.

 China. We counted ≥250 positions, as compared with ≈270 six months ago and ≈260 a year ago. The 2012-2017 average of positions in China was about ≈300, with a peak of nearly 500 in mid-2013. Software engineering accounted for about ≈65 positions (down slightly from six months ago), “services” accounted for more than ≈50 (down from about 110 six months ago) and “sales” for about ≈15 positions (down from 35 six months ago and more than 40 a year ago);

 France. We counted ≤30 positions, as compared with ≈35 six months ago and ≈50 a year ago. The 2012- 2017 average was ≈40. The data again showed more services positions (≈20) than either sales (a mere two) or software engineering positions (rien);

 Germany. We counted ≈40 positions, as compared with ≤80 six months ago and ≤200 a year ago. The 2012-2017 average was ≈200, with a peak of about 365 at the beginning of 2017. The positions in Germany have been heavily weighted towards services, and sales to a lesser extent (and even less to software engineering). In the current compilation, there were fewer than 10 sales positions, as compared with about 16 six months ago, more than 100 at the beginning of 2018, and almost 130 at the beginning of 2017. We counted about 24 services positions, as compared with more than 30 six months ago in the prior review, more than 80 a year ago;

 India. We counted ≈320 positons, the same as six months ago, and about ≈300 a year ago (the highest number we’ve counted to date). The 2012-2017 average was about ≈200, with a peak of about 350 at the beginning of 2018. We counted ≈110 services positions (about the same as six months ago and a year ago), which, somewhat atypically, exceeded the number of software engineering positions: now about 95, as compared with ≈145 six months ago and ≈175 a year ago, and 55 three years ago;

 Israel. We counted ≈105 positions, vs. ≈55 six months ago and ≈70 a year ago. The 2012-2017 average was about ≈63. Software engineering - ≈60 - accounted for the majority of the positions, plus a few (or one) positions in each of services, hardware engineering (i.e., silicon), research, and sales.

 Japan. We counted ≈95 positions, as compared with over 120 six months ago (the highest we’ve counted to date) and slightly more than 100 a year ago. The 2012-2017 average was about ≈55. Services accounted for about ≈40 positions in the current compilation, similar to the number six months ago. Sales accounted for about ≈24 positions, as compared with 34 six months ago and 28 a year ago. The number of software engineering positions in Japan is not material (less than 10);

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 U.K. We counted ≥115 positions, the same as six months ago and up from ≥95 a year ago. The 2013- 2017 average was ≈90 positions. Services accounted for ≈40 positons, as compared with. ≈24 both six months ago and a year ago, and sales accounted for 13 positons, up slightly from six months ago and about the same as a year ago. We counted fewer than 10 software engineering positons.

The data for other key countries included the following: Australia, ≈32 (as compared with ≈100 six months ago, ≈75 a year ago, and ≈75 two years ago); Canada, ≥50 (as compared with ≤70 six months ago and about 80 a year ago); Ireland, ≥80 (as compared with ≥125 six months ago, almost half of which were in sales, and ≤70 a year ago); Netherlands, ≥40 (as compared with ≤70 six months ago and ≥45 a year ago); Portugal, ≈35 (as compared with ≥25 six months ago and ≤20 a year ago); the Russian Empire, 10 (as compared with 15 six months ago and about the same as a year ago. There are about as many positons in the empire as there are in Estonia and Poland and less than half as many as in Romania), and, Spain, ≈27 (as compared with 34 six months ago and ≥20 a year ago).

By brand and technology. The following is a review of selected keywords by brand, technology, or function (we should note that not every reference necessarily indicates a specific job; these references can occur across multiple job descriptions. Therefore, these keyword searches can be an indication of weighting over time).

 “Brainwave”. 4 references, all in engineering, e.g., “By leveraging the huge amounts of fine-grained parallelism delivered by current and future FPGAs, reconfigurable computing can radically accelerate many types of computations. We are applying this technology to challenging applications important to Microsoft and our customers, including but not limited to Bing search. Our work includes developing, optimizing, deploying, and maintaining FPGA accelerators, infrastructure, and tools. Our current focus is on accelerating deep neural networks (DNNs) via the Brainwave accelerator architecture. We are heavily involved in developing, extending, and deploying Brainwave, and in bringing DNN models to production on FPGAs using Brainwave”.

 “Cognitive” (new search term). 90 references, two-thirds of which are in “engineering”

 “Consumption” (as in, the consumption of Azure). We counted 290 references for this term (as compared with almost 520 in our first search six months ago), including about 40 in “engineering”, about 60 in “services”, more than 75 in “sales”, 20 in “business programs & operations”, 6 in “marketing”, more than 40 in “technical sales”, 48 in “customer success”, and 12 in “business development & strategy”, e.g., “senior manager – ISV partner development team”;

 “Cortana”: ≈85 references (as compared with ≈125 six months ago and ≈95 a year ago), e.g., “senior computer vision engineer”;

 “CSA” (cloud solution architect). More than 10 references (as compared with 25);

 “CSI” (cloud server infrastructure): 30 references (as compared with 24 six months ago), two-thirds of which are in “engineering”, e.g., “senior data scientist, Azure cloud server infrastructure”;

 “Cybersecurity”: 45 references (as comapred with 40), e.g., “national security officer (Australia)”;

 “Datacenter”. About 180 references (as compared with 250), including 70 in engineering, 12 in hardware engineering, 10 in “customer success”, and more than 40 in ….”data center”, e.g., cloud operations & innovation (“CO+I”). There are now 54 Azure regions;

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 “Fabric” (new search term). More than 160 references, three-fourths of which are in “engineering”, e.g., “principal software engineering manager - Azure Stack is a key intelligent edge solution that enables customers to use Azure services in their on-premises environments…. Our Fabric team owns the distributed systems platform that makes it easy to update and manage microservices and containers, including image-based deployments, and patching and updating of container-based microservices that operate at high scale and availability” and “senior software engineer - The Azure Platform Infrastructure Engineering Organization was formed in late summer of 2017 and is a swiftly growing organization. The group's vision is to make it easy for everyone to create, consume, and manage planetary-scale, reliable cloud production services and infrastructure to achieve more…. In this position, you will be actively contributing to building the next generation pipeline for processing, storing and analyzing logs for first- party and third-party customers”.

 “FPGA. 35 references (a few higher than six months ago), about a third of which are in “hardware engineering”, e.g., “senior design engineer - You will be responsible for all facets of design from working on architecture of features, microarchitecture of IP blocks, RTL design, synthesis, static timing analysis, silicon validation, all the way to supporting the manufacturability of the part”. This is just one clear indication of how Microsoft has become engaged in silicon development and therefore an increasingly important customer for the electronic design automation (EDA) companies. See too our January 7th, 2019 company report, “On silicon infusion and diffusion”, on this subject.

A similar search for “ASIC” yielded 24 references (as compared with 15 six months ago), e.g., “senior low-power implementation engineer”. Lastly, a search of “silicon” yielded about 100 references (more than doubling from six months ago). A similar search by area yielded 28 openings in Raleigh. North Carolina for ASIC/analog design;

 “FUSE Labs”. 5 references, e.g., “senior software development engineer - Join Microsoft FUSE Labs in building Bot Framework, Microsoft’s platform for building conversational AI and connecting with users on Skype, Facebook Messenger, Office 365 mail, Microsoft Teams, and more.. Bot Framework is our most recent product and has become the nexus for the company’s Conversation as a Platform (CaaP) initiative. We build the tools and services that enable developers to integrate AI capabilities into their software”;

 “GitHub”. More than 65 references (as compared with more than 50 six months ago), e.g., “software engineer - Microsoft's Cloud and AI division is looking for a Senior Software Engineer to work with us on the next generation of developer services and tools by helping engineering teams within Microsoft use GitHub and adopt inner source practices. The primary responsibilities of this role are to design and code new software and services to be used by tens of thousands of Microsoft’s engineers and the broader DevOps market”.

 “HoloLens”. More than 175 references (as compared with more than 80 six months ago and three dozen in mid-2017), the majority of which are in “engineering”, e.g., “senior software engineer, volumetric video - In Cognition, people—not devices—are at the center of everything we do. Our tech moves beyond screens and pixels, creating a new reality aimed at bringing us closer together…We’re looking for experienced developers to create the foundation for a new visual medium – volumetric video - bringing human moments and performances into immersive Mixed Reality experiences. In this role, you will develop and support our volumetric streaming and playback technology”.

 “HPC”, i.e., “high performance computing”. 10 references (as comapred with 24);

 “HPU” (holographic processing unit): 5 references (same), e.g., “director, silicon performance architecture”;

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 “M365” (new search term). More than 55 references, almost four dozen of which are in “engineering”;

 “MCIO” (Microsoft cloud infrastructure & operations): 24 references (as compared with more than 130 six months ago and more than 150 a year ago), e.g., “software development enginer - MCIO is responsible for delivering over 200 Microsoft web portals, Live and Online Services around the world including infrastructure, security and compliance, operations, globalization, and manageability…We are going to build a brand new v1 service to fundamentally change how our data center critical environment infrastructure is managed and operated, in order to achieve 99.999%availability. The service will integrate with advanced IOT-enabled data center device monitoring system to enable automated decision making, utilize cutting edge machine learning algorithms to reduce operation cost, and leverage world-class augmented reality technologies with HoloLens in the future.. ”;

 “Quantum computing”. More than 40 references (as compared with less than 20 six months ago), the majority of which are in “hardware engineering”; and,

 “Retail stores”: More than 130 references (as comapred with more than 80 six months ago and about 110 a year ago), including ≈110 in the U.S.

SPECIAL ASSIGNMENTS

Among the thousands of positions that these reviews compile, we often encounter a number that seem interesting or indicative in terms of new products or projects, and the like.

Engineering.

 “Principal software engineering manager”: “….we are forming a brand-new team for creating unique, informative, and actionable user experiences for customers to manage their capacity across all their subscriptions, resources, and the regions in which they are deployed. In addition to providing customers visibility into their utilization, we will provide them with alerts when teams within their companies exceed their usage quotas, when there is a potential for their growth to be constrained by regional capacity and eventually for the customers to provide us with projections of their own growth so that we can include them in our capacity buildout plans”.

 “Director of global commissioning”: “The Director of Global Commissioning is responsible for the Program Management, Definition, and Execution of Datacenter Commissioning….This role represents the interests of Cloud Operations + Innovation (CO+I) during the Acceptance phase of the project life cycle for all facilities along with oversight of the Commissioning Agent (CxA) relationships across multiple projects and global geographies….This position is fundamentally accountable for the Quality of the Datacenter project as it is being commissioned during the Acceptance phase, through Turnover to the Global Datacenter Operations (GDCO) Team, continually supporting the GDCO Team during the Operational phase”.

 “Senior data/applied scientist”: “Teams is the hottest v1 product at Microsoft…The Microsoft Teams machine learning group is expanding and we are looking for talented data scientists and engineers to join this exciting effort. As part of the ML team, your work will involve data mining, machine learning, statistical modeling, linear algebra and other techniques. You will design, implement models running in scale on large data sets, monitor and tune ML models, and analyze metrics”.

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 “Senior software engineer”: “….the Power Platform org is building the core platform for the Microsoft business application ecosystem. Power Platform is an emerging billion-dollar business group. We are building large cloud scale distributed systems to deliver business systems and a platform for customers to use to measure, act, and automate their systems….As a software engineer on the team, you will be responsible for the design, development and maintenance of the services, APIs and resources that underpin multiple core initiatives and projects across the Power Platform organization, at enterprise scale”.  “Microsoft threat intelligence center, front-end software engineer (Israel)”: “The Threat Intelligence Center is focused on building cutting edge solutions, countering adversary-based threats to Microsoft and its customers through dissemination of threat intelligence, proactive hunting, incident response, and the development of new solutions and methods to detect adversary activity, investigate and respond to the attacks….As a Front-End engineer you will help build a new cloud service that will assist Microsoft to protect its customers from nation state adversaries”.

 “Principal product marketing manager”: “Azure IoT is a comprehensive platform that covers device connectivity, device management, gateways, advanced analytics, and command & control functionality….You will be working as a part of the Azure IoT Business Acceleration team, where we are focused on helping our field sellers and partners assist customers in adopting solutions to achieve their desired business outcomes…This role is focused on leading the product marketing strategy, planning and execution for several elements of the Azure IoT product portfolio including Azure Maps, Azure Time Series Insights and running the Security Program for Azure IoT”.

It was quite clear at the recent BUILD conference that Microsoft is seriously committed to building its IoT portfolio and ecosystem. See Chart A below and our May 7th, 2019 comments on BUILD. Among our other companies, this Microsoft commitment is of course of obvious importance to PTC.

 “Senior software engineer – IoT”: “You will be working in the Azure IoT Platform team that builds and runs Azure IoT Analytics service, also known as Azure Time Series Insights. This service is responsible for providing near-real time interactive analytics over data streaming from millions of IoT devices and other sources via IoT Hub and Event Hub”.

 “Principal product architect – IoT developer experience”: “We are looking for a Product Architect, passionate about developers as customers, to define and drive end-to-end experiences for IoT developers with a focus on the "Internet" part. …You will be responsible for driving a common vision for IoT developer experience across a breadth of teams building IoT device, edge and platform capabilities. You will define programming models consistent across cloud and edge, and create experiences that enable developers to use these models”.

 “Principal software engineering manager – Transport” (China): “Office 365 Transport is the backbone of Office 365 highly-scaled distributed messaging system. Transport is truly a core piece of technology and critical to the success of Office 365”.

 “Principal group engineering manager – Microsoft Teams telemetry”: “We are looking for a great Software Engineering Manager to lead our telemetry pipeline team. The telemetry pipeline team's mission is to provide the tooling, infrastructure and processes that enable the Teams organization to listen to signals coming back from our services and client software to improve our customer's experience”.

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 “Senior software engineer”: “The Microsoft Ads Research & Development team is one of the most strategic and growing teams at Microsoft. As the key monetization engine for Bing and other Microsoft properties, at Microsoft Ads we bring both our technical and creative side to the table. Ads Marketplace and Serving Systems (MPS Systems) team prepares huge volume of advertising data to be served and performs low latency and high throughput online serving. This team is responsible for selecting all possible ads and run the machine learned models including DNN models to find the most relevant Ads for the user queries”.

 “Senior user experience designer”: “Lobe is a new machine learning startup recently acquired by Microsoft. Our team is working to create an easy-to-use visual tool that lets anyone train and ship custom machine learning models without writing any code”.

Services.

 “Data scientist, office of the CTO, data & AI domain, Microsoft services”: “Microsoft Services is looking for a “Data Scientist, Office of the CTO, Data & AI Domain” who has a mix of advanced technology, customer and strategic business acumen… Lead worldwide strategies for Artificial Intelligence and hybrid cloud data platform technologies by innovating and incubating emerging technologies from the Microsoft engineering teams to real world repeatable customer solutions…. Supporting and advising selling and engagement teams to follow a consistent data science methodology, approach and technical strategy for the Microsoft Data & AI space…. Monitoring engagements for data science pattern reuse, methodology and algorithm improvement, risk reduction and quality….”

 “CTO architect” (Amsterdam, Brussels, Copenhagen, Stockholm): “The Data Insights CTO supports a companywide strategic initiative to position Microsoft as a leader in cloud based Data Platform Solutions. The CTO is a global organization within the Data & AI domain. It is chartered to function in close interaction with product engineering and collaborates with product and services sales teams to drive solution adoption…This position focuses on the Data Migration Jumpstart initiative to drive migrations from competing data platforms to the Microsoft Data platform. The focus is on working with customers, partners and engineering to drive CPU core and Azure Cloud consumption conversion to Microsoft”.

Sales.

 “Solution specialist” (Germany): “The Business development Manager AI/IoT is supporting a joint cloud solution sales motion to develop and manage key customer digital transformational initiatives… The Business development Manager AI/IoT (BDM AI/IOT) will drive the demand generation, adoption, sales execution, sales orchestration and deployment of Microsoft’s AI and IOT Solutions”.

 “Senior sales professional, Dynamics 365 cloud solution” (U.S.): “The SSP will be responsible for managing, leading and closing the top Microsoft opportunities within the US SMC business for Microsoft Dynamics F&O solution. These opportunities will be defined as the largest and most complex opportunities…. The GBB [global black belt] will be involved in specific and strategic sales opportunities, and in developing and delivering demand generation programs designed to uncover net new Dynamics sales opportunities within specific industries”. A keyword search of “Dynamics 365” yielded more than 250 references, of which 26 were in sales, more than 60 in services, and 115 in engineering.

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 “Enterprise channel manager” (Tokyo, posted January 31st, 2019). “The Enterprise Channel Manager (ECM) role is key to Microsoft's channel management strategy as part of the One Commercial Partner Organization…. The role will need to orchestrate across the Enterprise Sales, Partner Management and Go-to-Market teams to ensure partner offerings are aligned to customer requirements as defined through the Microsoft solution and practice maps. The role will lead co-sell partner impact in assigned customers/territory and provide feedback to OCP where partner capacity and coverage is needed”.

 “Azure digital sales, Dutch”: “The Insides Sales organization is a newly formed organization with a charter to accelerate Microsoft’s growth in its cloud-first, mobile-first businesses along with the traditional businesses… This role is based in our new, state of the art Europe Marketing and Sales Center in Dublin”.

Hardware engineering. .

 “Senior graphics silicon architect”: “We are looking for an architect to grow and make an impact with their experience in GPUs, graphics techniques, hardware modeling, and design/microarchitecture… You will be responsible for a portion of our next-generation graphics architecture, including performance and functional modeling in SystemC/C++, and working throughout all aspects of the architecture, design, and verification process”.

 “Senior RF engineer”: ”We are looking for a Senior RF Engineer to focus on RF hardware design for our next generation of Surface devices. A strong mix of technical breadth and depth will allow you to work cross-functionally with different disciplines (Industrial Design, Mechanical, Electrical, Thermal, Software and Firmware)…. Analyze the design with simulation tools and models to verify its conformance to the design requirements and system integration” (it would appear that Ansys and Cadence should beam some sales and AEs into Redmond, if they haven’t done so already).

Business programs & operations. .

 “Director of business management”: ”The Azure Business Management team is seeking a Director of Business Management to support customer & partner initiatives involving the Azure Senior Leadership Team (SLT). This position will report to the Customer & Partner Engagement (CPE) Lead and will be the liaison between the teams making the request and the SLT”;

Finance. .

 “Senior finance manager, cloud & AI revenue/Azure”: ”The Cloud + AI Revenue Team is seeking an experienced Sr. Finance Manager to drive customer migration strategy, and lead analysis and financial rhythm for Azure hybrid offerings and Windows Server and System Center licensing businesses…. Lead key financial rhythms including monthly close across a variety of stakeholders including: marketing, engineering, and finance leaders”;

 “Cloud & AI corporate strategy director”: “The Cloud & AI Corporate Strategy team is chartered with defining the strategy for Microsoft’s Cloud & AI business…. The group broadly focuses on three sets of activities: product strategy…customer strategy…corp strategy and thought leadership….”.

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Business development & strategy. .

 “Worldwide director, digital transformation”: ”Microsoft is investing in the creation of a completely new discipline and a Customer Success team that will play a key role in helping Microsoft customers achieve this digital transformation through successful adoption of Microsoft Cloud solutions... The Customer Success is a new discipline and team that truly focuses on helping our customers to get to successful business outcomes using our technology”;

 “Business strategy manager – monetization & pricing”: “We are looking for a senior business planner/pricing strategist to drive growth for Microsoft Enterprise Services (professional services, customer support)… In the pricing strategy team, we are looking to break new ground in how we monetize enterprise services to help our customers accelerate their journey to the cloud and realize value from their investments faster. We are partnering very closely with business groups and our professional sellers globally to design durable, long term strategies for under-served customers and in strategic deals that drive revenue for the division”.

A keyword search of “monetization” yielded 34 references, the majority of which turn out to be in “engineering”.

OUR OTHER COMPANIES & MICROSOFT

Our searches and filters of the Microsoft jobs data often reveals references to products provided by, or relationships with, a number of our other software companies under coverage, including for instance, mechanical and electronic design software, product lifecycle management (PLM), and the like.

 Adobe (ADBE, $285.06, Buy). We counted 30 references (as comapred with 33 six months ago), almost all of which were in “engineering”, for Microsoft’s internal design and interface/visualization work (e.g.., Creative Cloud, Photoshop), plus positons related to Microsoft’s own internal sales and marketing needs.

 Aras (private). We counted a single-digit number of references again (4), mostly having to do with “core services” and “supply chain” engineering”, e.g., “The Business Platform and Supply Chain Engineering team builds engineering tools and systems for the Devices Supply Chain and partners with the Azure team to support the Cloud Supply Chain. The Devices Supply Chain supports getting products like Xbox, Surface, HoloLens into the hands of retail or enterprise customers. The Cloud Supply Chain supports getting server capacity in our Azure Datacenters…. Our technology stack is a mix of 3rd party (SAP, Ariba, Aras) and homegrown services”.

 Cadence Design Systems (CDNS, $69.99, Buy). We again counted again several references to “Allegro” (the incumbent for electronic system design, i.e., printed circuit board design) and “Virtuoso” (for analog/mixed-signal design). A related search for “PCB” yielded 15 references (a few more than six months ago) and more than 25 related to “RTL” (more than doubling from six months ago);

 PTC (PTC, $89.12, Buy). We counted 10 references to “Creo” (an increase from prior counts), i.e., for industrial and mechanical design and engineering (for Surface, etc.). Creo is the incumbent mechanical CAD tool. “Windchill” yielded just one reference and “Thingworx” none (nevertheless, PTC disclosed on its last quarterly conference call that the co-sell pipeline with Microsoft had increased to “240”). In addition, at PTC’s annual Liveworx conference next month, there will be a product roadmap session that will include PTC’s executive vice president and the head of Microsoft’s Azure IoT business.

Griffin Securities Equity Research 10 Microsoft Corp. May 16, 2019

Chart 1a. Microsoft, software engineering positions, by region, 2012 – May 2019

2,200 2,100 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0

MSFT - Americas software engineering MSFT - Asia-Pac software engineering

MSFT - Europe software engineering