Several years ago, Microsoft wasn’t seen as a forerunner in the race for faster, better technology. It fell behind in the profitable future of mobile, search, advertising, and cloud advancements. Today, it is just as lucrative as Apple, and both technological giants are worth approximately $850 billion. In fact, at the close of November’s stock trading, Microsoft was actually slightly ahead of its competitor.
Microsoft’s stock price has risen an astronomical 30 percent over the last year, thanks to a change in management. Satya Nadella was elected as Microsoft’s chief executive in 2014. Since his appointment, Microsoft has almost tripled its stock price. Nadella has put Microsoft on the path of cloud computing and left behind its venture into smartphone territory. Now, it has embraced its original position as a provider of technology to its customers in the business sector.
Under Nadella’s leadership, Microsoft re-constructed its Office apps such as Word, Excel, and PowerPoint into Office 365, a cloud alternative. Now, Microsoft is second only to Amazon in the realm of cloud services. Slowly, Microsoft’s annual revenue increased 15 percent and its profit rose 13 percent, with an income of $110 billion and a profit of $35 billion in the fiscal year that ended in June.
Microsoft’s star is rapidly rising and shows no sign of stopping. Harvard Business School professor David B. Yoffie stated that “the essence of what Satya Nadella did was the dramatic shift to the cloud.” “He put Microsoft back into a high-growth business,” said Yoffie.