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- legend
- Microsoft CEO Satya Nadella
- source
- AP
- Microsoft
and Apple are
compete for the most valuable technology position in the world
business. - It's easy to badociate that with Apple's weakness, but
do not sleep on the fact that it's also because of Microsoft
strength. - When Apple has to deal with unstable consumers in a
volatile market, the focus put by Microsoft on enterprise software and
services is less exciting, but could be more sustainable and
stable. - In addition, Apple faces the possibility that the
iPhone will face Trump administration tariffs, while
Microsoft does not do it. - Finally, while Microsoft and Apple are facing each other
laptops and other devices, Microsoft depends a lot less
his gadget stuff.
As you read this, Microsoft is fighting for a position with Apple
for the title of the world's most valuable technology company – something
this has not happened since 2010, when the
Zune was still a thing. The two are pretty close to each other,
with each worth about 850 billion dollars plus or minus a couple of
billions of dollars, and each on the other to different
points during the negotiation this week.
It's easy to blame this turn of events on a falling apple, as
the signs of weakening of the demand of the iPhone continue to accumulate, putting the
hurt on the stock of tech titan. But as much as this reversal of
fortunes can be attributed to Apple's difficulties, do not neglect
the fact that it is also largely due to Microsoft
renewed strength.
In short, it starts to look like Microsoft, slow but stable
The growth of "boring" software and services for businesses is
more attractive to Wall Street than Apple's addiction
the bady, huge but volatile consumer market.
When Satya Nadella took the reins of the CEO almost five years ago, he
was quick to call his shot: Microsoft would stop
throw money after a bad pbadword like windows on
smartphones, and start focusing on fast-growing companies like
the Microsoft Azure cloud and the Office 365 subscription
a service.
And frankly, the tracking was a bit boring for
anyone who's not been rich because of the fact that Microsoft stock
continues to reach unprecedented highs. Analysts expect Microsoft to show
strong growth in its cloud computing business – and
quarter after quarter, Microsoft delivers. In all,
Microsoft has achieved a business turnover of $ 114 million for the 2018 fiscal year
up 14% from the previous year, including $ 23 billion
its different jobs in the cloud.
This is not as exciting as launching a new iPhone;
customers are not literally lined up around the block to try new ones
IA services for the Microsoft Azure cloud or preorder placement
for its super secure version of Linux for connected gadgets.
Yet there is a strong demand. Companies big and small are turning
cloud computing platforms like Azure to reduce their dependence on their
own servers and data centers, which has the dual advantage of
reduce costs while allowing them to modernize their operations. These
buyers are well known and eager to commit to
long-term contracts that keep Microsoft in the dark for the long
carry.
In addition, this model keeps Microsoft nice and isolated from
several trends that came to work against Apple. There is no
seasonality for cloud computing; multinational corporations
are not much more likely to buy Office in the holiday district
compared to the summer. In addition, Apple runs under
Trump administration threats to place such a high tariff
10% on the iPhone. Microsoft Core Products offered through
Internet, are not inclined to the same thing.
Oh, of course, Microsoft still has a strong mainstream brand,
especially with the Windows operating system, the Xbox video game
systems, and its range of surface equipment. Some of these products,
especially Surface laptops, go directly against Apple. the
The difference, however, is that for Microsoft, these initiatives are
often lucrative and strategically important secondary enterprises;
for Apple, selling devices (and services like iCloud and Apple
The music to go with them) is the whole game.
In the end, however, the continued success of Microsoft under
Nadella is a reflection of the motto of the famous Y Combinator
Start-up program: Do something that people want. It's just that in
in this case, the people who want it are the big spenders
companies, not the types of super-fans who buy a new phone on
launch day each year. In addition, Microsoft is not under the same
kind of regulatory control like Google or Facebook.
So it is quite possible that Apple recovers its
jogging, launches a new iPhone to success, and returns to
to be a $ 1 trillion company again, do not sleep on the fact that
what Microsoft has accomplished is an extraordinary turnaround
his own right, with momentum that will most likely keep
building. One is not necessarily better than the other, but
they are both very strong and not at all mutually exclusive.
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