How Microsoft’s strategy has transformed under Satya Nadella



Microsoft is investing in products outside its own platform to enhance its presence

Under Satya Nadella, Microsoft (MSFT) realized its insignificant share in the mobile space. It thus launched MS Office on Apple’s (AAPL) iOS that was earlier available only on Windows, Windows RT, and Windows Phone. Microsoft launched Office on iOS for free. The company later launched Office for Google’s (GOOG) (GOOGL) Android too. According to Microsoft, within one week of its launch on iOS, there were 12 million downloads of Word, Excel, PowerPoint, and OneNote for iPad.

The above chart shows that unlike Microsoft, Google (GOOG) (GOOGL) and Apple (AAPL) have not shown much interest in making their apps and services available for Windows Phone users.

To gain exposure to Microsoft, investors can consider the Powershares QQQ Trust (QQQ) or the Technology Select Sector SPDR Fund (XLK). Microsoft makes up 8% and 9.61% of these ETFs, respectively.

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Microsoft is more concerned about updates of its services on other platforms

According to Quartz, Microsoft has launched about 100 apps on both Android and iOS. As the above chart shows, Microsoft is more concerned with other platforms than its own Windows Phone. There are only a few apps, such as Snipp3t for iOS, that are only available on other platforms. Skype for both iOS and Android has received a number of app updates. Plus, the general consensus is that Office for iPad displays documents better than Windows tablets do.

With the recent acquisitions of Acompli, HockeyApp, and Sunrise, along with the development of apps for other platforms, it is clear that Microsoft’s strategy has shifted. Instead of keeping its apps and services walled behind its platform and waiting for people to use its operating system, it has opted to develop cross-platform apps and services.


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