Microsoft’s brand is now worth more than $100 Billion

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Microsoft and Satya Nadella
Image Courtesy: Fortune.com

Microsoft has turned into a cooperation focused on cloud
services and is no longer the old typical software firm that
built Windows operating system and services for consumers. CEO
Satya Nadella’s Microsoft evolved so much that it has become
the world’s third most valuable brand, ahead of Facebook and
Amazon.

Forbes has created a list of world’s most valuable brands of
the year 2018, and the publication has put Apple on the
first place. Google holds the second position and Microsoft is
on the third place, with a brand value worth $104.9 billion, up
21 percent over last year.

Interestingly, the Redmond-based software giant is
actually close to the second spot and its brand value is
growing every year.

Microsoft brand value
Image Courtesy: Forbes.com

2018 has been a good year so far for Microsoft, and the

company’s latest financial reports have revealed that the
company made $26.8 billion and net income of $7.4 billion.
As you might have guessed already, the Intelligent Cloud
division was Microsoft’s biggest source of new growth for
the quarter ending March 31.

With a new CEO at the helm of the company since February 2014,
Microsoft has embraced a new strategy in the last couple of
years, and it has transformed the tech giant completely.
Microsoft focuses on cloud-first and AI-first world and the new
strategy adopted by the software giant is indeed paying off.

Microsoft’s Azure and other cloud services have become the
company’s top cash flow, and it’s likely to improve in the
coming years.

“So overall, growth will moderate as the numbers become big and
they’ve already become very big. But that said, we see plenty
of opportunity for total gross margin growth in terms of
dollars, just because of the number of markets that we
participate in”, Nadella said earlier this year.

But the growth is not just limited to the cloud services as the
software giant’s Surface also contributed to the company’s
growth, with the revenue increasing 32 percent year over year.
The Xbox division also made some good money, with the company
saying that the gaming revenue was up 18 percent in both
hardware and software segments.

It goes without saying that the software giant would have been
much more powerful if it had a successful mobile division.



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