The company moved forward from the success of Windows to advance.
On September 24, While launching a product in NewYork, Microsoft boss Satya Nadella said, "Here and now is like the 1990s". He was referring to the days of great success of Diggaj Software Company. At that time the company's Windows operating system was dominating the market. Profits and income were running at 30% annually.
For a time, Microsoft became the most valuable company in the world. But, success had created a situation of complacency. The company's earnings in the early 2010s and profits had decreased. But in the 2020s, Microsoft has made a strong comeback.
Nadella has focused on cloud computing instead of Windows. This reduced expenses and increased profits. The company's operating margin has increased from 29% in 2014 to 43%, the highest among America's 50 largest non-financial companies. Microsoft's share prices have outpaced all its major rivals except its biggest rival Apple. Satya Nadella has now taken another bold initiative by trying his hand at Artificial Intelligence.
Microsoft's new heights have presented many lessons to businessmen. When Steve Ballmer took over the reins of the company from Bill Gates in 2000, Windows was everything in the company. Due to this Microsoft smartphones and cloud-like computing emerging technologies are lagging behind under the leadership of Nadella, the company is more alert than necessary regarding the launch of new technology. Herein, the company has rapidly moved from tools to AI.
Another lesson is that businesses do not need to innovate on their own. Microsoft adopted another company's technology. The company in New York has developed various software for Assistant copilots like ChatGPT. Its basis is the capabilities of OpenAI's similar tools and Amazon's cloud computing page business model.
Now, the company intends to apply the same formula to the gaming business too. It plans to market its cloud technology to Activision Blizzard to be offered in conjunction with gaming assets. Compare this with Google's emphasis on innovation which has suffered a loss of Rs 1.99 lakh crore on its moonshots business since 2018.
Additionally, Amazon has also invested a lot of money in big technology like science fiction. Its three Dimensional Screen smartphones flopped. Meta CEO Mark Zuckerberg has suffered a loss of Rs 3.32 lakh crore on his dreams of virtual reality. They could do this because they have 61% voting rights. Similarly, Google founders Sergey Brin and Larry Page hold 51% voting rights of Alphabet. This explains why the company is struggling to grow beyond the search business.
Concluding, Google Alphabet could not move forward, Microsoft is in high demand when it comes to AI tools due to its investment in OpenAI, the company that offers ChatGPIT. A year ago, most experts believed that Google's parent company Alphabet or Facebook would be at the forefront of AI. And now AI can take Microsoft to greater heights. This can take back its title of world's most valuable company from Apple.
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