Jared Spataro on Building Microsoft's SaaS Business | TechCrunch Sessions

Microsoft's SaaS Transformation with Jared Spataro

For over 15 years, Jared Spataro has been a key figure at Microsoft, witnessing and actively participating in the company’s evolution from a traditional on-premise software vendor to a leading SaaS (Software as a Service) provider.

Office 365 and its Impact

Currently serving as corporate VP overseeing Microsoft’s flagship SaaS offering, Office 365, Spataro will be a featured speaker at TC Sessions: SaaS on October 27th. He will share insights into the strategies that underpinned Microsoft’s successful transition.

The modern Microsoft Office 365 is a comprehensive suite of tools. It includes platforms like Teams for collaboration, Outlook for email, and OneDrive for file storage. Furthermore, it encompasses the core Microsoft Office productivity applications – Word, Excel, and PowerPoint.

Beyond these, the suite extends to include services such as PowerBI, Yammer, and SharePoint, demonstrating the breadth of Microsoft’s online offerings.

Financial Performance and Growth

The division responsible for Office 365 and other online products, known as Productivity and Business, generated over $14 billion in revenue during the fourth quarter of 2021. While a precise breakdown isn't publicly available, Office 365 contributed significantly to this substantial income.

Early Days and the Yammer Acquisition

Spataro’s journey with Microsoft began in 2006, initially focusing on the SharePoint content management product. By 2011, he held the position of senior director for SharePoint when Microsoft acquired Yammer for $1.2 billion. This acquisition proved pivotal in initiating the company’s shift towards a SaaS model, with Spataro playing a central role.

Historically, Microsoft released major SharePoint updates every three years. These releases were feature-rich, but adoption was often slow. Many customers hesitated to upgrade, fearing disruption to their existing, customized installations.

Embracing Continuous Delivery

This resulted in significant product development efforts not immediately benefiting a large portion of the customer base. The acquisition of Yammer introduced a continuous delivery methodology to Microsoft. The Yammer team brought a modern approach to software development.

The Nadella Era and Cloud-First Strategy

With Satya Nadella assuming the role of CEO in 2014, Microsoft fully committed to a cloud-first strategy. Concurrently, Spataro transitioned to the Office division as general manager, leading the transformation from boxed software to the Office 365 SaaS model.

Our conversation with Spataro will delve into this transition, exploring its impact on software production and sales, and his contributions to Microsoft’s large-scale transformation.

TC Sessions: SaaS Lineup

In addition to Jared Spataro, TC Sessions: SaaS will feature Google’s Javier Soltero, Monte Carlo’s Barr Moses, and investors Sarah Guo and Kobie Fuller. A diverse and insightful group of speakers will be present.

We encourage you to join us for a stimulating and informative event.

Secure your pass now to take advantage of savings up to $100. We look forward to welcoming you in October!