Microsoft Enters Race To Become World’s First Trillion Dollar Company; Will They Get There Before Apple?

Microsoft Enters Race To Become World’s First Trillion Dollar Company; Will They Get There Before Apple?

Home » Global News » Microsoft Enters Race To Become World’s First Trillion Dollar Company; Will They Get There Before Apple?

Posted Fri 30 Mar 2018 by Farai Mudzingwa (@FariM9)

Microsoft might be entering the race to become the world’s first trillion dollar company, joining a host of other familiar global giants.

Who else is in the race?

Before Microsoft’s entry in this race, it was widely believed that one of Apple, Alphabet (Google’s parent company) or Amazon would cross the line first.

Apple (as many would have expected) is currently leading the pack and is valued at $870 billion. Amazon overtook Alphabet as recently as last week and is now behind Apple with a valuation of $768 billion. Though Amazon frog leapt Alphabet, the two are still neck and neck, considering Alphabet’s $762.5 billion valuation. Microsoft is trailing all the above with a valuation of $650 billion.

Microsoft should not fret too much as analysts at Morgan Stanley have predicted that they will cross the one-trillion mark within a year. What was more interesting to me was the drivers of this expected growth

The Cloud!

Microsoft’s cloud-based services have been seeing massive growth, particularly Microsoft Office 365 and the Azure hosting service.

Microsoft 365 is a grouping of subscriptions that provide productivity software and services, from the popular Microsoft Word to the more niche OneNote and Access.

Azure, on the other hand, is a cloud computing service used in building, testing, deploying and managing applications and services through a global network of Microsoft servers. Basically, developers can create the code for applications using tools provided by Azure and then virtual machines execute the rules of the applications using Windows server.

Enough of the technicalities. Azure is currently only behind Amazon Web Services in the cloud computing spacing but has been doubling its revenues year-on-year and is expected to continue growing until 2020.

Gaming

As you may (or may not) know, Microsoft is behind the popular X-box gaming console and since releasing the X-box One in  Microsoft has sold about 36 million units (as of 2018) worldwide. The gaming business is expected to continue pumping in revenues.

Social Media

Microsoft and social media rarely appear in the same sentence but Microsoft is actually the owner of Linked-in. The professional networking platform was acquired by Microsoft in 2016 for $26.2 billion. Linked-In but is expected to become an advertising giant going forward.

It will be interesting to see who crosses the one trillion mark first.

 

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Microsoft Enters Race To Become World’s First Trillion Dollar Company; Will They Get There Before Apple?

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