1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Rahul Chattaraj
Rahul Chattaraj
Articles (59) 

Is Microsoft Becoming A New Company Altogether?

April 07, 2014 | About:

If you sit and analyze the way Microsoft (NASDAQ:MSFT) used to work and the way it’s working today, you will be bound to ask the question, “What’s gotten in to Microsoft?”. Well, the answer is Satya Nadella. The man has completely revamped the way in which the tech giant used to work. It wass only a matter of a few days in which his choices and actions have started improving the situation for the Windows maker.

iPad gets Microsoft Office
Back in the day, Microsoft and Apple (NASDAQ:AAPL) were arch rivals and Bill Gates (Trades, Portfolio) swore that his company will never make software for Apple devices. And here we are now where Satya Nadella launched Office for iPad - a move that has attracted both praise and criticism.

This doesn’t mean the old days of rivalry are behind these two legendary companies. Both the players still continue to compete against each other. But, Nadella chose to look beyond competition and decided to serve customers using a different operating system but still seeking the Office software. This will only enable Microsoft to expand the user base for the product, automatically translating to higher revenue from the offering; a clever move indeed – something that should have been adopted a long time back. Analysts even expect this move will redefine the terms between the companies at least marginally and also expand the market for the software dramatically.

However, there is a contrary view to all this also. Many believe that since iPad sales are plunging and Apple is losing tablet market share with each passing quarter, the move wasn’t the best one. Let’s keep that topic for another day, may be for my next report. As a user I am excited to have Microsoft Office on my iPad. This has made my tablet experience even better.

Microsoft Windows Phone OS Goes Free
Several analysts and industry experts had pointed out countless number of times how the licensing aspect of Windows Phone OS has hampered the company’s chance to become a major player in the tablet space. While Google (NASDAQ:GOOG) offers its Android platform for free to OEMs and thus allow them to sell their devices at a reasonable price, Microsoft used to charge the OEMs for the OS. Automatically a very small segment of the manufacturers decided to gamble with the OS and that also with raised manufacturing cost because of the licensing fee.

However, finally the day has come when the OS will be available to OEMs, manufacturing 9 inches or smaller devices, at no cost. Hopefully this will stimulate several smartphone and tablet manufacturers to opt for Widows platform. After all, the more the number of Windows devices are out there, the better is the chance for Microsoft to become a recognized player.

The Iconic “Start” Menu Returns
The customer is king. This is something a company such as Microsoft should have never forgotten. Customers started complaining when the company removed the Start menu option from its Windows 8. While many failed to see the reason behind the hue and cry, the point remains, it doesn’t matter if the complaints are baseless. What matters is customers prefer the Start menu. Nadella understood this and brought back the iconic feature through the free update to Windows 8.1. This will surely pacify the antipathy some were feeling for the latest Windows OS.

Departing thoughts
Its not been long that Satya Nadella took over the charge of Microsoft. Since then he has been making small changes in the way the company functions and deals with the external environment. Though some moves are very basic and small, even they seem to be acting in the company’s favor. It’s surely a pleasure to witness these changes in the company. Nadella seems to be the much needed change Microsoft required. Under his guidance the company has a better chance to become a significantly large player in the smartphone and tablet space, and claim back its lost glory.

Rating: 4.5/5 (2 votes)



Please leave your comment:

Performances of the stocks mentioned by Rahul Chattaraj

User Generated Screeners

Nightdoc2Large Value
DBrizan2017 oct20CDN
DBrizan2017 oct20CDN dividend
althekearoct 17 user defined screen
althekearPE >50th percentile of INDUSTR
althekearLow EV/EBITDA
althekearLynch inspiret Oct 17
althekearsg hk best
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat