Microsoft: Cloud, Surface Rise While Profits Fall - InformationWeek

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Microsoft: Cloud, Surface Rise While Profits Fall
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David Wagner
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David Wagner,
User Rank: Strategist
1/28/2015 | 1:39:43 PM
Re: Surface
I'm not sure. It is interesting. I remember just a few years ago when a lot of companies were heading towards divesting of physical pobjects for "higher profit margin" things like consulting and software. IBM is the prime example. And, in a way, they left the field wide open for Apple. Now people who make things are hot. But there is a problem with making things-- you run hot and cold on your products. Maybe Microsfot's mized portfolio is the best idea. But they sure seem to be heading to a business model where software makes them less money for them. 
Kelly22
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Kelly22,
User Rank: Strategist
1/28/2015 | 12:59:04 PM
Re: Surface
True, based on its recent announcements - I'm looking at you, HoloLens - it looks like Microsoft is trying to boost its status in both software and hardware. Even though it's a software company, Microsoft's line of physical products is strong. Surface did really well last quarter, and plenty of smartphones sold. Wonder if it can keep up the momentum.
David Wagner
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David Wagner,
User Rank: Strategist
1/27/2015 | 3:16:12 PM
Surface
Nice to see Surface doing well. I like the product. I can't help but note that Microsoft is a software company that is increasingly making its revenue from have some physical thing involved. Cloud revenue requires them to own a physical site with physical servers. Surface is a thing. XBox is a thing. There's still plenty of software in the portfolio, but I find it interesting they are getting involved increasingly in the physical world.


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