{"id":5590,"date":"2019-11-08T11:31:42","date_gmt":"2019-11-08T19:31:42","guid":{"rendered":"http:\/\/sites.law.berkeley.edu\/thenetwork\/?p=5590"},"modified":"2019-11-08T11:31:42","modified_gmt":"2019-11-08T19:31:42","slug":"microsoft-ceo-satya-nadella-lays-out-the-technologies-hes-betting-will-take-the-company-past-its-1-trillion-valuation","status":"publish","type":"post","link":"https:\/\/sites.law.berkeley.edu\/thenetwork\/2019\/11\/08\/microsoft-ceo-satya-nadella-lays-out-the-technologies-hes-betting-will-take-the-company-past-its-1-trillion-valuation\/","title":{"rendered":"Microsoft CEO Satya Nadella Lays Out the Technologies He’s Betting Will Take the Company Past its $1 Trillion Valuation"},"content":{"rendered":"

With a $10.7 billion profit on a $33.1 billion revenue, Microsoft has achieved a $1 trillion valuation. It is the third US-based company to exceed this market cap and has since seen its stock price surge by over four percent within a month. The company attributes its growth to its Azure cloud business, a key strategic area that has transformed the company into a cloud computing leader<\/a>.<\/p>\n

According to CFO Amy Hood, Microsoft\u2019s Azure cloud computing business had material growth in $10 million-plus contracts. In addition, the overall commercial cloud business, which includes Azure, Office 365, and other cloud services, has increased quarterly earnings<\/a> by nearly 36% to reach $11.6 billion. Customers like Walgreens Boots Alliance have bought packages from Microsoft that include Azure Cloud and other AI offerings with cloud-based subscriptions to Microsoft Office. This hybrid cloud approach allows companies to use a single set of tools for data stored on their own servers, as well as on shared space. \u00a0According to \u00a0Microsoft CEO, Satya Nadella<\/a>, the company has a \u201cvery competitive and growing footprint” in business applications: “even when you think about something like Microsoft 365, we never participated in spite of our past success with all the first-line work and now we get to participate in it.\u201d<\/p>\n

Interestingly, the commercial cloud business isn\u2019t the only area of focus for Microsoft. Hood says that the company would invest in areas like security, compliance, communication, workflow and business-process reinvention. The aim is to look for areas where there is room for durable and expansive growth. Services like LinkedIn have noticed a growth spike as an increased number of recruiters and job seekers have utilized the service. Along with Office and Dynamics, these three services brought in $10.2 billion<\/a> in quarterly earnings. Even the company\u2019s gaming business saw strong growth, which is attributed to the rise of the online video game, Fortnite.<\/p>\n

There is no doubt that the cloud space is a source of Microsoft\u2019s growing value, but in order to keep growing, the offering must maintain its profitability. This will require long-term growth stemming from selling more services and products to customers \u2014 that is, Microsoft gaining a bigger share of how much companies and agencies spend on technology overall.<\/p>\n

Many have regarded the $1 trillion valuation as a significant feat for the company and investors are paying close attention amidst fears of a slowing global economy. Despite outperforming the estimates, senior leadership isn\u2019t quite fazed by it. According to Chris Capossela, Microsoft\u2019s Chief Marketing Officer, \u201cthis is a metric that nobody on the senior leadership team is tracking.\u201d<\/p>\n

Microsoft CEO Satya Nadella Lays Out the Technologies He’s Betting Will Take the Company Past its $1 Trillion Valuation<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With a $10.7 billion profit on a $33.1 billion revenue, Microsoft has achieved a $1 trillion valuation. It is the third US-based company to exceed this market cap and has since seen its stock price surge by over four percent within a month. The company attributes its growth to its Azure cloud business, a key […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5590","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"publishpress_future_action":{"enabled":false,"date":"2026-09-26 17:39:31","action":"change-status","newStatus":"draft","terms":[],"taxonomy":"category"},"publishpress_future_workflow_manual_trigger":{"enabledWorkflows":[]},"_links":{"self":[{"href":"https:\/\/sites.law.berkeley.edu\/thenetwork\/wp-json\/wp\/v2\/posts\/5590","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sites.law.berkeley.edu\/thenetwork\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.law.berkeley.edu\/thenetwork\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.law.berkeley.edu\/thenetwork\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.law.berkeley.edu\/thenetwork\/wp-json\/wp\/v2\/comments?post=5590"}],"version-history":[{"count":0,"href":"https:\/\/sites.law.berkeley.edu\/thenetwork\/wp-json\/wp\/v2\/posts\/5590\/revisions"}],"wp:attachment":[{"href":"https:\/\/sites.law.berkeley.edu\/thenetwork\/wp-json\/wp\/v2\/media?parent=5590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.law.berkeley.edu\/thenetwork\/wp-json\/wp\/v2\/categories?post=5590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.law.berkeley.edu\/thenetwork\/wp-json\/wp\/v2\/tags?post=5590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}