Focus on core products Expand mobile strategy

November 13 news, according to foreign media reports, Microsoft held a media conference at the company's headquarters last week, CEO Satya? Satya Nadella disclosed to investors the products he valued most. In terms of number of customers and revenue generation, Nadella only cares about three products - Windows, Office 365 and Azure.

For a long time, Windows and Office have been two of Microsoft's cash cows, followed by server tools. Compared to these three products, Azure is relatively young.

When Windows 10 is released, Microsoft will cancel the distinction between Windows and Windows Phone. Windows 10 will run on all shapes of devices, including smartphones and tablets.

In the speech called "Office 365" rather than "Office", Nadella emphasized the importance of turning to cloud-based subscription model for Microsoft. When Office 365 was just announced a few years ago, investors questioned Microsoft's ability to change the business model of Office. Recently, as the Office 365 Home and Personal users continue to grow steadily, investor concerns have subsided. Office 365 Home and Personal users have reached 7 million.

Nadella also showed interest in expanding Microsoft’s mobile strategy and recently released a free mobile version of Office with more features.

Azure is a rookie. In 2013, revenue for the first time exceeded 1 billion US dollars (about 6.1 billion yuan). Microsoft did not list single-line Azure revenue in its financial report, but said that due to the continuous growth of users, Azure business revenue in the previous quarter increased by 121%.

For small companies that lack capital investment infrastructure, cloud computing platforms such as Azure are more attractive. According to Nadella, 40% of Azure's business revenue comes from startups and ISVs.

Xbox has become one of Microsoft’s most prominent businesses—although this mainly refers to consumer attention rather than financial performance. Despite recent rumors that Microsoft will spin off the Xbox business, Microsoft confirmed this summer that the company will not give up its Xbox business. Microsoft can use Xbox business graphics and voice recognition technology for its core business.

The three major products that Nadra pays attention to do not include Bing. However, Bing is an important factor that Microsoft hopes to use Windows to generate revenue in the low-cost device market in the future. More importantly, Windows with Bing has begun to appeal to hardware vendors, attracting more than 50 hardware partners since it was announced earlier this year.

Nadella pointed out that Microsoft's other business is aimed at expanding these three core services. This is the right strategy in a world where cloud computing is prioritized and mobile is prioritized.

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