Windows currently accounts for only about 10% of the company’s revenue. And perhaps it’s time Microsoft felt no need Windows anymore.
When you think of Microsoft, which product you think of first?
Is that Windows? But Windows is actually not the “pot of gold” of Microsoft.
According to the report that Microsoft- quarter revenue to the securities Commission, giving the most money for Microsoft in quarter 4/2015 is not Windows but the server and cloud.
You may think “okay, if it’s not the first must be the second because Windows 10 was a great success and a strong breakthrough after the failure of its predecessors, Windows 8”.
But your answer is still incorrect. The 2nd largest revenue Microsoft has received come from the array of electronic games with Xbox. Don’t forget, Microsoft has bought Mojang recently, the illustrious game developers – Minecraft.
‘At least Windows is in third position for sure’? No, you are wrong again, the answer is Microsoft Office. At No. 4, with just 10% of total revenue, which was ‘the place’ of Windows.
So what happened?
Of course, Windows 10 is not as failure as Vista or Windows OS 8.x and this operating system is not disgraced as Linux. Windows is still the most popular operating system for desktop computers in the world.
However, what happened is that the desktop computer is becoming less important. Tablet might not kill the PC entirely, but smartphones and tablets have replaced many functions that only PC can do previously.
Indeed, PC will never die. Some people always need a real keyboard to complete the work. They might not die now but it is definitely less important.
Microsoft understands this. Look into attempt again (in vain) of company to make everyone use Windows Phone and try to own “a seat” in the mobile market.
Why? Because Microsoft has seen this future of the PC. Unfortunately, in the end, Microsoft must accept the reality: Windows Phone is a failure.
Quickly, Microsoft moved to another plan. It began to exploit the software for business, including move the entire office application onto Android. So what is related to the decline of Windows?
Of course it does. Office becomes a cloud program rather than a program on the desktop. So it increased investment in the Azure cloud service. You can see Microsoft is doing very well with the cloud and service array. Microsoft no longer is a company that lives by software operating system for the desktop anymore.
Preston Gralla corresponded on Computer World, Microsoft’s future can be summed up in one sentence: “The future of Microsoft will be the cloud, and Windows can become the last option someday’.
Things will exactly happen like that. Revenue of Windows fell 5% of in the recent quarter, despite the appearance of Windows 10. Meanwhile, Microsoft’s cloud is witnessed a growth of 5%.
Azure’s sales grew 140% over the previous year. After announcing quarterly earnings report, CEO Satya Nadella said: ‘Business opportunities in the array for cloud is big, bigger than any individual market we used to participated’. He thought it is bigger than Windows.
This marks a change, not only for Microsoft and Windows but also for all of the personal computer. We used to think that the desktop computer is the core of computing. But this is no longer accurate.
In 1976, the operating system CP / M of Gary Kildall and the first computers running floppy disk was given the power of computing with the computer which had lots of memory and information technology company to the desktop computers and ordinary users.
In 2016, we will witness not only Windows going down but also seen the strength of the computing move from personal to the next generation of computers with large memory space, is the cloud.