Microsoft Stock: Slowly and Steadily Leading to $2 Trillion Market Cap (and Rising)

Consistent success over a long period ceases to become a hot topic. This is what happened to Microsoft (MSFT) – Get the Microsoft Corporation report since Satya Nadella took over as CEO in early 2014.

Before Nadella took over as head of Steve Ballmer, the company went from disaster to disaster. There was the Windows 8 ahead of its time, buying Nokia (NOK) – Get Nokia Oyj Report phone division for $7 billion, then ditch phones and allow Android (GOOGL) – Get the Class A report from Alphabet Inc. become an operating system challenger for Windows.

Now, Microsoft has been so stable that people hardly notice that the Redmond, Washington-based company’s market capitalization has grown to over $2 trillion.

Unlike Amazon (AMZN) – Get the report from Amazon.com, Inc., Nadella’s company manages to invest heavily in its future while posting steady profits. That means his successes are often ignored — or at least not celebrated — which makes something like his Dynamics 365 segment fly a bit under the radar.

What is Microsoft Dynamics 365?

Microsoft describes Dynamics 365 as “the way you become more agile to delight your customers. With Dynamics 365, you’ll have the only portfolio of intelligent business applications that empowers everyone to deliver operational excellence and create better customer experiences. attractive”.

It’s marketing gibberish to say that Dynamics 365 offers a suite of out-of-the-box business software solutions to help companies manage their business and customer relationships. During the second quarter earnings call, Nadella explained how the product has been used by some major brands.

“To counter demand shocks and supply constraints in this economy, every business will need to become a hyperconnected enterprise, unifying data, processes and teams across the organization,” he said.

“In Dynamics 365, we continue to take part, as enterprises turn to our expanding portfolio of business applications to address these challenges and more.”

It’s as close as Nadella boasts on an earnings call, but he’s clearly excited about what his company has achieved.

“With Dynamics 365 Connected Spaces, we’re creating a new class of software to help organizations manage physical operations in a variety of industries, from real estate and retail to factories and construction,” he said. he adds.

How does Microsoft help?

“Companies like Chipotle (GCM) – Get the Chipotle Mexican Grill, Inc. report. and Home Depot (HD) – Get the Home Depot, Inc. report. are leveraging our new customer experience platform to take control of their data, connecting customer touchpoints to deliver more personalized experiences,” Nadella said.

“Daimler Trucks North America uses Dynamics 365 Supply Chain Insights to anticipate supply chain issues.”

Basically, while Dynamics 365 is not a direct equivalent of Amazon (AMZN) – Get the report from Amazon.com, Inc. Web services is a collection of cloud-based software and services that compete in the same space. (Microsoft’s global AWS equivalent is its Azure cloud offering.)

Nadella has a very optimistic view of the services Microsoft has deployed as part of Dynamics 365.

“We announced a new ‘logistics as a service’ offering with FedEx, (FDX) – Get the FedEx Corporation report combining company network data and insights with Dynamics 365 to help brands better fulfill, ship and serve customer orders,” he said.

He also clarified that the product offering will continue to evolve.

“Top of the pile, I would say. Dynamics, Dynamics 365 Connected Spaces, that’s a solution that’s previewing today. It’s really about being able to take a retail space, factory or a connected building and essentially create a whole new category of software, which is about managing physical processes.

“Like CRM, ERP and supply chain management, we now have a fully connected spaces driven suite that will automate physical processes,” Nadella added.

Dynamics revenue grew 29% year-over-year thanks to Dynamics 365, which grew 45%, the company said in its earnings release.

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