Six years ago, Google surpassed Microsoft in regards to stock market value. However, in the previous year, Microsoft has increased by a whopping forty percent, which is five times more than the profit by Alphabet. Microsoft has now become more valuable than Alphabet. Microsoft’s worth stands at $749 billion whereas Google parent Alphabet was worth $739 billion. A few months back, Morgan Stanley estimated that Microsoft would reach $1 trillion in valuation towards the end of this year. As it turns out, Microsoft has taken two steps further in the same direction. Apple at $935 billion and Amazon at $783 billion lead the market.
Here is why Microsoft is more valuable than Google:
- The Cloud
More and more organizations and businesses are adopting a cloud-based model. It may be either full cloud or by going for a hybrid approach. Microsoft Azure is a growing set of cloud services which helps the organizations in meeting their organizational challenges and increases their productivity. Microsoft Azure is extremely fast. It has speed across three central areas: deployment, scalability, and operation. Azure is also capable of matching global reach. Several technology experts believe that MS Azure is the best cloud platform.
Since Azure is based on Windows, users can write apps in the programming languages which they use for Windows applications. It also has added cost benefits as its pricing is based on use. Given that security is one of the growing concerns for businesses when they wish to switch to the cloud, Azure has been designed with safety in mind.
One of the most significant changes which people have noticed from Microsoft over the span of few years is that it has switched to subscription-based models for its software as well as services. Once upon a time, if anybody wanted to buy any MS Office suite, for instance, they would have to take out a significant chunk of money up front to get it.
However, with Office 365, customers and organizations alike just have to pay a monthly fee instead of one single cost. This subscription method has been very successful for Microsoft. In the previous quarter, Office 365 had reached 30.6 million in earnings from consumer subscribers. According to the last earnings report by Microsoft, the business customers hit 135 million monthly actives. Office 365 setup can be activated at www.office.com/setup.
Microsoft’s subscription strategy does not just revolve around Office. It pays off in other areas too, such as Xbox. The gaming revenue for Xbox was increased by 18 percent.
- Big Future Bets
It is also vital to see where the company is putting its future bets. Microsoft is placing its bets in AI and IoT. Microsoft has been making considerable investments in the areas of Artificial Intelligence and Internet of Things. These areas are very likely to see significant growth in the coming future. Microsoft plans to make AI available to everyone in order to enrich lives and modify businesses.