Microsoft, once the world’s most valuable firm, has undergone a significant transformation under the leadership of Satya Nadella. The company has shifted its focus towards cloud computing and artificial intelligence, moving away from its traditional software business model. This strategic shift has resulted in a doubling of the company’s share price over the past three years.
Microsoft’s cloud business, Azure, has become the firm’s most significant growth driver, with its revenues increasing by 93% in the last quarter alone. This shift has also led to a cultural change within Microsoft, with a new emphasis on collaboration and openness.
Despite these positive changes, Microsoft still faces challenges. The company is lagging behind Amazon in the cloud computing market, with a 10% market share compared to Amazon’s 40%. Additionally, Microsoft’s operating margin has decreased due to the high costs associated with building data centres for cloud computing.
Nadella’s vision for Microsoft is to become a platform company that provides tools for others to build upon. This vision, combined with Microsoft’s renewed focus on cloud computing and artificial intelligence, could potentially lead to a new era of growth for the company.
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