As Satya Nadella enters his third year as CEO, Microsoft finds itself at the top of the cloud computing market, second only to Amazon. That’s no mean feat considering the company built its legacy on Windows and Office software that ran only on corporate servers and PCs. Still, Microsoft finds itself working to convince more customers to use Office 365, which runs in Microsoft’s own data centers, without overly cannibalizing sales of its old-fashioned software. (Its $26.2 billion acquisition of LinkedIn, Microsoft’s biggest buy yet, might help.) And it’s working to convince startups and small businesses to view Microsoft Azure, the company’s public cloud infrastructure, as a welcoming place to do business. Elsewhere, gaming continues to be a sweet spot for Microsoft as Xbox Live’s monthly active user base grew to 49 million, up by a third from the year prior. Even Bing, while not reaching Google levels of ubiquity, is showing life as search advertising revenue climbed by 17%. As a result of all of this Microsoft stock has surged quarter after quarter, reaching all-time highs.
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