Tomahawk, WI 03/24/2014 (Basicsmedia) – It would be premature to write off Microsoft Corporation (NASDAQ:MSFT). The company still dominates in its core areas of Windows and MS Office and is making the right moves in the cloud computing arena which is where all the action seems to be.

The Nadella Effect

Writing off Microsoft would be as silly as saying that Apple Inc. (NASDAQ:AAPL) has been on a downhill journey since the demise of Mr. Steve Jobs. Microsoft continues to remain highly profitable — just like Apple.

With the long search for Mr. Steve Ballmer’s successor over with the selection of Mr. Satya Nadella, everyone is waiting to see what major moves the new CEO will make. The markets have reacted positively so far to Mr. Nadella’s appointment. The stock is trading above the $40.00 mark for the first time since July 2000 and has risen by about 50% since January 2013.

What can Mr. Nadella do to sustain this momentum?

Clearly, Microsoft Corporation (NASDAQ:MSFT) has been a failure in the smartphone market. It has spent $7 billion to acquire Nokia Corporation (ADR) (NYSE:NOK)’smobile unit. Its Windows Phone is nowhere in the picture compared to the iPhone and the massively popular Android from Google Inc (NASDAQ:GOOG). In what could be indicative of the direction it’s moving in, Microsoft has recently licensed Windows Phone for free to a couple of Indian smartphone makers.

Offering something for free won’t be something entirely new for Microsoft. At different points, the company has offered free versions of SQL Server, Visual Studio and Azure cloud services.

While its Windows 7 and 8 operating systems and Office suite of products continue to dominate the desktop PC market, the PC market is itself declining. Microsoft is missing out on the entire user base of 145 million iPad users. To remedy this, it’s likely that Microsoft will be announcing its Office for iPad on March 27, 2014.

So despite the few weak points such as the money losing Bing search unit or the failure of Surface in the tablet market and the recent controversy surrounding Microsoft accessing a user’s Outlook email box to read the user’s emails, expect Microsoft Corporation (NASDAQ:MSFT) to remain a strong player in the technology sector.

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