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Damien Gallagher
Damien Gallagher

Posted on • Originally published at buildrlab.com

Microsoft Just Told Its Engineers to Install Claude Code. We've Been Using It for Months.

Last week, Microsoft told thousands of engineers across its Experiences + Devices division — the teams behind Windows, Microsoft 365, Teams, Bing, Edge, and Surface — to install Claude Code. Not evaluate it. Not pilot it. Install it.

We know what that moment feels like. We've been living it for months.

What Just Happened

According to The Verge, this isn't a skunkworks experiment. Microsoft's CoreAI team, led by Jay Parikh, has been testing Claude Code for months already. Now the directive has expanded company-wide. Engineers are being told to use both Claude Code and GitHub Copilot side-by-side and compare results. Even non-technical employees — designers, product managers — are being encouraged to prototype with it.

The numbers tell the story of how serious this is:

  • $500M — Microsoft's projected Anthropic spend
  • $30B — Anthropic's committed Azure compute capacity
  • 91% — Microsoft engineering teams already using GitHub Copilot
  • All code repos approved for Claude Code across Business & Industry Copilot teams

Perhaps most telling: Microsoft is counting Anthropic model sales toward Azure consumption quotas. That's a privilege historically reserved for OpenAI and Microsoft's own models. When you start restructuring your cloud economics around a partner, that's not experimentation — that's strategy.

Microsoft first brought Claude Sonnet 4 into GitHub Copilot last June. Within months, it became the favoured model for paid Copilot users. Now they're going further — giving engineers the full Claude Code CLI, not just model access through an existing tool.

Why This Matters More Than Another Partnership Announcement

This isn't Microsoft hedging its bets on AI models. It's something more fundamental: validation that AI-first development actually works at scale.

Microsoft has 91% Copilot adoption across engineering. They've spent years and billions building GitHub Copilot into the default developer experience. And they're still telling engineers to install a competing tool and compare. That tells you everything about where the industry is heading — the best teams won't standardise on one AI coding tool. They'll use the best tool for each job.

The fact that non-technical staff are being encouraged to prototype with Claude Code is equally significant. This isn't about replacing developers. It's about expanding who can build. When PMs can prototype their own ideas and designers can generate working code from their specs, the entire product development cycle compresses.

What We Already Know (Because We've Been Doing This)

At BuildrLab, we've been using Claude Code as our primary development tool for months — not as a novelty, but as core infrastructure. While Microsoft is rolling this out now, we've already shipped production systems with it and have hard data on what works.

Here's what that looks like in practice:

In a single week, we shipped 6 production applications, merged over 60 pull requests, and wrote approximately 45,000 lines of code. Not throwaway prototypes — production systems with tests, documentation, and CI/CD pipelines.

Our workflow has evolved into something we think represents the future of software engineering:

  1. Human architects — We design the system, define the contracts, make the hard decisions
  2. AI codes — Claude Code generates the implementation, often faster than we could type it
  3. Human reviews — Every line gets reviewed. AI is fast but not infallible
  4. AI tests — Claude Code writes comprehensive test suites against our specs
  5. Human ships — We own the deployment, the monitoring, the accountability

This isn't "AI replaces developers." It's "AI amplifies developers." The humans do the thinking. The AI does the typing. The result is output that would've taken a team of ten, delivered by a team of three.

We also led Claude Code adoption at Workhuman, where it drove a 60% reduction in migration effort on a major platform initiative. That's not a marginal improvement — it's a fundamental shift in how engineering teams estimate and deliver work.

The Pattern We're Seeing

Microsoft's move confirms a pattern we've been tracking across enterprise:

Phase 1: Curiosity — Engineers try AI tools on side projects. ("This is cool but I wouldn't use it for real work.")

Phase 2: Quiet adoption — Individual teams start using it seriously. Results speak for themselves. ("We shipped that feature in two days instead of two weeks.")

Phase 3: Top-down mandate — Leadership sees the productivity data and makes it official. ("Everyone install this. Now.")

Microsoft just hit Phase 3. Most enterprises we talk to are somewhere between Phase 1 and Phase 2, watching others go first. The gap between early adopters and the rest is widening every month.

What's particularly notable is that Microsoft isn't choosing between tools — they're running Claude Code alongside Copilot and measuring. That's the right approach. Different AI coding tools have different strengths. Claude Code excels at complex, multi-file changes and architectural reasoning. Copilot is excellent for inline completions and quick suggestions. Smart teams use both.

What This Means for Your Engineering Team

If you're leading an engineering organisation, here's what Microsoft's move should tell you:

The "wait and see" window is closing. When the company that built GitHub Copilot is telling engineers to also use Claude Code, the debate about whether AI coding tools are production-ready is over.

Adoption is a skill, not a switch. You don't just install Claude Code and get 60% productivity gains. It takes deliberate workflow design — knowing when to let AI lead, when to constrain it, how to review AI-generated code, how to structure prompts for complex architectural work. The teams getting the most value are the ones that invested in building these practices.

The compounding effect is real. Our first week with Claude Code was good. Our tenth week was transformative. AI coding tools get more valuable as you learn to work with them — building up context files, refining workflows, understanding the model's strengths and limitations.

Non-technical adoption is the next frontier. Microsoft encouraging designers and PMs to prototype isn't charity — it's strategic. When your PM can build a working prototype instead of a slide deck, your product cycle gets fundamentally faster.

We've Been Here Before. We Can Get You Here Faster.

BuildrLab has been operating in the Claude Code future that Microsoft is now entering. We've made the mistakes, refined the workflows, and shipped the production code to prove it works.

We help engineering teams adopt AI coding tools — not with theoretical frameworks, but with the battle-tested practices we've built from doing the actual work. From initial setup to workflow design to measuring real productivity impact.

If Microsoft is betting on Claude Code with $500M and a company-wide mandate, the question isn't whether your team should adopt it. It's how fast you can get there.

We can help. Let's talk.

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