Under the helm of Satya Nadella, Microsoft has reached new heights in the fields of cloud computing, services, and more. Especially the company’s big bets on the cloud are paying off. The software maker surpassed Apple to become the world’s most valuable (publicly traded) company.
A couple of years ago, Microsoft’s future looked uncertain as the number of people buying Windows licenses was falling and its phone business was failing. As soon as Nadella took the top job as the CEO of the company, major changes were made – the phone business was shut, more emphasis was put on the cloud business, the business model of Windows was changed from pure sales to services oriented, and more.
PC sales soared during the pandemic
In the current age, the services sector continues to grow at an unprecedented rate. The likes of Apple, Google, and more see the opportunity and have invested heavily in long-term growth by locking customers into their walled gardens. Microsoft understands this and has been working on its own way of bringing new customers to its services.
The Windows business went through a rough period in the past but the pandemic forced people to buy new computers to work from home. The sales of Mac computers and Chromebook skyrocketed but at the same time the sales of Windows computers also soared. As a result, Microsoft is once again focusing on Windows – having released a new version of the operating system.
“Microsoft remains in an enviable position heading into 2019 on the heels of its cloud success and is firing on all cylinders,” said Daniel Ives, an analyst at Wedbush, in a research note. “We believe the shift to cloud is a major secular trend that is significantly benefiting Microsoft in the field as a key tailwind and should continue its momentum heading into the next 12 to 18 months.”
