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Microsoft Corporation (MSFT) Plans to Expand its Silicon Valley Campus

Microsoft Corporation (MSFT)

Microsoft Corporation is planning for a major redesign and expansion of its Silicon Valley campus. This is seen as a move like that being done by many other firms including both competitors and non-competitors. It is expected that after the construction completes, the capacity of the five-building workplace will rise by about 500 to 1000 employees. At present, about 2000 employees work there. The construction is not expected to begin before 2017. However, after it is complete, the complex will occupy 6.2 acres of land. The land that is being purchased is the one that Microsoft itself has been leasing out since the last 15 years. The work will take about 3 years to complete.

Microsoft Corporation (MSFT)

Microsoft Corporation aims to ride high on its new-found image

Shortly after the new CEO Satya Nadella took over almost a couple of years ago, Microsoft has seen a sea-change in its focus areas. It is aggressively pushing its Office and cloud offerings. Users and investors alike increasingly see it as a firm that is built around devices, mobility and the cloud. This is a lot different than the earlier perception of a firm that mainly sells software.

It is no wonder then, that this change in focus saw Microsoft partnering with many other organizations. Many of these would be of course smaller in size but would have made a mark for themselves in their respective niche. Even in the case of office software, where Microsoft is extremely dominant, it acquired firms whose products/services would serve as good add-ons to its existing line-up. Some of the projects that are worked on at the Silicon Valley campus include Xbox, Outlook, Skype and Yammer. Analysts are bullish on cloud being one of the biggest reasons to invest in Microsoft.

Attracting and retaining top-quality talent to Microsoft

It is no secret that the use of technology in daily life has made even those firms sit up and take notice that have not been traditionally associated with the high-tech domain. There is great imbalance between the demand and supply of highly skilled talent. Therefore, firms both big and small leave no stone unturned in order to make sure that they remain competitive and have the best of available talent with them.

In case of the current plan, it is not just a matter of capacity-building. This campus has been around since 1981. More attention is being given to create a better working environment for current staff as well as making the campus more ‘greener’. Parking spaces too will be changed. Microsoft’s executive vice-president Qi Lu wrote in an email sent to all staff saying that the state-of-the-art facility will have team courtyards and easy external approaches. There will also be a gym on the campus itself. Contractor Skanska has been appointed for carrying out the required work. The architects which have been chosen are incidentally the ones who were consulted for building Airbnb’s headquarters. It is also believed that adding capacity to the operations here will go on to play a big role in luring potential employees who would be wary of relocating elsewhere.

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