Starting more than a decade ago, Microsoft fell behind Apple as computing shifted from desktop machines to mobile devices like iPhones, making Microsoft’s PC dominance less relevant. Attempts to regain its footing by acquiring Nokia’s handset business and releasing its own phones led to expensive write-downs. This was particularly galling for the company because it once kept Apple afloat with a cash infusion in the 1990s.
The rise of cloud computing changed Microsoft’s fortunes about five years ago. Under CEO Satya Nadella, the company invested heavily in data centres and other infrastructure to run applications and store data for corporate customers.
And instead of trying to tie Office work productivity software to its Windows operating system, Microsoft offered it as a subscription service over the internet and on other companies’ devices — including Apple’s. It also stopped making smartphone hardware, while boosting the quality of its tablet and PC designs.
Microsoft is now second behind Amazon Web Services in the cloud. That’s insulated Microsoft’s stock from worries about declining consumer spending on devices and increased regulation of digital advertising businesses like Facebook and Alphabet’s Google. – Business Day
You must be logged in to post a comment Login