Microsoft CEO Satya Nadella has expressed confidence in his company’s financial capability and believes that despite the challenges posed by the coronavirus pandemic, the tech major will come out of the crisis “pretty strong”.
The India-born CEO made the comments during an interview to CNBC on Tuesday.
Nadella, said the big question would be whether the demand holds up in the US, Europe and other developed markets badly hit by the pandemic.
When asked whether his company would be able to deliver later this year certain products including the new Surface devices and a revamped Xbox gaming console Nadella said, “We feel good about how we are able to meet the demands of work from home kits. On the supply side, we are getting back on rails.”
“The question now would be getting the products done and the launch. We are mostly going to focus on quality as well the situation in terms of demand and more importantly safety for the people,” he said.
The company is still believed to be hit by the pandemic. It said last month, it would not be able to meet its revenue guidance range for the quarter for the division of the business that contains Windows. Several other companies have followed in taking down guidance.
Altogether, though, the company is holding up, Nadella said.
“We have a great balance sheet, we are a very diverse business, we have a mix of annuity, non-annuity, that is also stronger than even the last time we even went into the financial crisis,” he said. “I feel confident we’ll come out of this, frankly, pretty strong.”
He said that Microsoft’s cloud infrastructure and services have been holding up under increased demand.
“If this was a previous generation of data center architectures or software architectures, I don’t think we would have been able to deal with this crisis as effectively as we have been able to,” Nadella said.
Like many other Americans, Nadella too has been working from home in an office he shares with his daughters and they’ve been helping him set up his desk. Previously, he said, “I used to always work from my bed.”
Microsoft was one of the first companies to advise their employees to work from home. The company aims to follow public-health guidance in every country where it operates when it comes to bringing employees back to facilities.
He also said that he supports any sort of fiscal stimulus from the US government.
“I think the government is doing the right thing, which is, they’re focused on the employees who are most impacted and the industries that are most impacted, and small businesses,” Nadella said.