Microsoft’s cloud-based health system Azure has a lot of issues that need fixing, including the cost of running it, but Microsoft’s CEO Satya Nadella believes that it is “not a sustainable solution” for large organizations.
In an interview with the Wall Street Journal, Nadell said that Azure’s current business model is not sustainable.
“I think that we have to be thinking about the long-term viability of the business model of the company,” NadeLL told the Journal.
“The longer you’re thinking about it, the more you realize that the cost and complexity of it, it is not a sustainable way of going about it.”
While Nadello does not specify the type of organizations he is talking about, it appears that Microsoft has made Azure a target for the healthcare industry as a way to cut costs, in order to keep the company profitable.
The company also has been working to improve Azure’s security, which was made easier by a new software update, which Nadeell said was “very helpful.”
However, the healthcare community has been quick to criticize Microsoft’s move to remove its healthcare IT support from Azure, which is now part of Microsoft’s Windows Azure cloud.
Microsoft’s healthcare IT teams are still required to support Microsoft Azure’s health systems, but that support is no longer required for healthcare IT customers.
This change comes as Microsoft has been in talks to sell its health IT division to private equity firm Cerberus Capital Management.
Microsoft is not the only company in healthcare who has recently tried to sell healthcare IT, with healthcare IT companies also losing business to companies such as Google, Facebook, and Amazon.
In a recent article, Healthcare IT expert and former Microsoft CEO John Siracusa said that healthcare IT should not be a Microsoft company.
“This is a business where Microsoft is going to get a significant share of the revenues,” Siracuse said.
“If you don’t have a good healthcare IT infrastructure, and that infrastructure isn’t as good as the Microsoft infrastructure, then your customers don’t care.”
Siracus also said that the way to improve the health IT infrastructure would be for Microsoft to “replace the healthcare IT with a new infrastructure, or to make a new service.”
Nadellan’s comments come just weeks after Microsoft also said it was closing its healthcare operations in Europe, and plans to invest $500 million in its European operations.