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Microsoft, losing the mobile race, see its future in the cloud

Blair Hanley Frank | Oct. 23, 2015
Betting big on Internet services has paid off for Microsoft.

During the earnings call, Nadella pointed out that all of the company's services feed into its cloud strategy. Enterprise IT managers deploying Office 365 can turn to Azure Active Directory for identity management, and once they're into Azure's platform offerings, are then more likely to use other services from Microsoft's cloud. That's a positive sign for the company's growth as a cloud player if it's able to convert paying customers into using more services going forward. 

It'll be key for Microsoft as it continues to compete in the cloud, since the firm is locked in a tight battle with major competitors like Amazon and Google both for existing large enterprises (where Microsoft is strong) and newer startups that may be more likely to turn to one of its competitors. 

 

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