Leaked Microsoft documents show where and how the tech giant’s new Moonshot staff are placing their bets, from quantum computing to government cloud services.

The team formed to manage Microsoft’s biggest goals has released its first growth strategy, according to internal documents seen by Insider. The plan reveals the group’s desire to transform Microsoft’s image “from a productivity vendor to a strategic cloud provider and mission-driven innovation provider” and how it plans to grow the federal government and telecom companies to fund innovative projects in the future.

Microsoft last year created an organization to house the leading companies – those companies that represent what could be the tech giant’s next big thing. It’s called Strategic Missions and Technologies (SMT) and led by former Azure chief Jason Zander, and it combines cutting-edge initiatives including quantum computing and space alongside its government cloud business.

In an email to the SMT Foundation last week, Zander shared what he called his “first SMT growth strategy,” describing the unit as “the nexus for scaling Microsoft’s innovation and new business.” The strategy includes the group’s mission statement: “Our mission is to transform communications and computing as we know it, through technological innovation and scientific discovery with the mission of the U.S. Federal Government as our beacon customer.”

The organization includes five companies: Microsoft Federal, which provides services to the US federal government, Azure Quantum Computing Unit, Communications Services for Network Operators (including the Azure Operators Industry for telecommunications and Azure for advanced services for operators), Mission Engineering, and Growth and Innovation Strategy.

Jason Zander

Jason Zander, Executive Vice President, Strategic Missions and Technologies.


Despite lofty long-term goals such as “harnessing the laws of physics to enable the nearly infinite possibilities of commercial quantum computing,” Microsoft plans to prioritize investments that will lead to business growth for the current fiscal year, according to the documents.

The organization’s primary goal will be to grow its core business, Microsoft Federal and Communications, “to maintain a strong revenue base that can be reinvested in technology innovation, so that teams can then incubate and scale new products and businesses in future periods,” the documents states.

Microsoft expects the company’s total addressable market during fiscal year 2025 for Microsoft Federal to be $105 billion and $149 billion for the Microsoft Communications unit. The document states that the company aims to double the revenue generated by that time, with an expected growth rate of 16%, 39% and 27% over the next three years.

The documents show that the company expects Microsoft’s federal business to be its biggest growth driver in the company’s current fiscal year and has increased revenue for Azure for cloud applications and infrastructure by 71% and revenue from its Modern Workplace employee productivity program by 23%. The documents showed that Microsoft expects its communications business to grow by 12.8%.

To grow the federated business, the documents state that Microsoft already has 90% market penetration in Modern Workplace — the category of business apps that includes Microsoft Office 365 productivity suite — and wants to focus instead on increasing “high-value, data-fueled cloud workloads” and secure clouds. for the government. Microsoft privately won a Pentagon contract on the cloud worth up to $10 billion, but the agency eventually canceled the contract after a lengthy legal challenge from Amazon.

The document states, “This transition of our thought-led ability to transform market perceptions of Microsoft from being a productivity vendor to a strategic cloud provider and mission-driven innovation provider needs to be enabled, leveraging our strong reputation within the organization.”

The documents also shed some light on how Microsoft communicates each unit’s mission statement to employees, along with responsible leaders:

  • Microsoft Federal, Led by Corporate Vice President Rick Wagner: “Microsoft Federal is changing the way the federal government innovates in bringing technology to impact its most challenging missions.”
  • Azure Quantum, Led by CVP Zulfi Alam: “The Azure Quantum team designs a quantum machine for a better future.”
  • Communications: Azure for Operators Industry, led by CVP Yousef Al-Khalidi, “empowers telecom industry organizations and governments with a ubiquitous hybrid cloud platform delivered over a secure, programmable network.” Azure for Operators, led by CVP Martin Lund, “accelerates the cloud transformation of mission-critical communications networks for essential and acute services.”
  • Mission Engineering, Led by Zach Kramer: “Mission engineering advances the innovation and technology that creates the ecosystem that transforms the mission.”
  • Innovation and Growth Strategy, Led by CVP and COO Mitra Azizirad: “GIS accelerates innovation and business performance for SMT that will support revenue growth and strategic investments today and over the next decade.”

Ashley Stewart is a Senior Technology Reporter at Insider. Are you a Microsoft employee or have insight to share? Contact the reporter via the encrypted messaging app Signal (+1-425-344-8242) or email (astewart@insider.com).

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