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Microsoft Lowers Ambitious AI Sales Targets
3 Dec
Summary
- Sales targets for AI products Foundry were significantly reduced.
- Over 80 percent of one US Azure team missed prior year goals.
- An ambitious 50 percent growth target was lowered to 25 percent.
Microsoft has implemented a rare adjustment to its sales targets for Artificial Intelligence products, specifically impacting the growth expectations for Foundry and other AI offerings. This decision comes after a substantial portion of sales teams failed to achieve previous high-bar objectives.
Sources indicate that more than 80 percent of a U.S.-based Azure sales team did not meet an ambitious 50 percent growth target for Foundry in the preceding year. In response, the company made a significant revision.
As of July, the annual growth goal for Foundry sales has been lowered to 25 percent. This recalibration reflects a more pragmatic approach to sales forecasting within the company's booming cloud business, acknowledging the challenges in achieving exceptionally ambitious targets.
