Tomahawk, WI 01/29/2014 (BasicsMedia) – It has finally dawned on Microsoft Corporation (NASDAQ: MSFT) that it has to change the way it does business. The need for new business ideas and operations has never been clearer to MSFT as it has been in the last few months. Now that there might be a change in management, where a new CEO could come in, MSFT has to rethink its business strategies. Rather than place all is hopes on software, MSFT has finally come to the realization that diversification is important if it hopes to avoid the sort of outcome that many of its peers have grappled with in recent years.

Microsoft Corporation (NASDAQ: MSFT) appears to be contemplating changing its business operations from focusing heavily on software, to converting itself into a maker of devices, as well as a provider of online services. In the past, Microsoft seems to have experienced fewer problems with regard to selling software to its clients on discs. Currently, the company is thinking about increasing its portfolio of products that boast of a much lower margin compared to software. Now that it has reported a 14% increase in revenue, the company can finally appreciate that it has been underperforming.

The fourteen percent increase in sales and revenue that Microsoft reported, is because of the brisk sales it made during the holiday season at the end of 2013. The company reported a huge increase in the sale of its Xbox gaming console, as well as the Surface tablets. The two devices helped MSFT to record a 3 percent rise in profits during the latest financial quarter. The news came as a pleasant surprise to investors, who showed their appreciation by sending the company’s stock flying high, and this has been the situation in the last few days to date.

Lovers of Microsoft Corporation (NASDAQ: MSFT), together with its investors, will have to get sued to a different company image. In future, there is little doubt that the company will not be known purely for its software division or business. MSFT will now be a company that excels in not only devices, but also online services that meet what the market expects of it. Microsoft has been weak in areas that its major competitor, Apple Inc, has excelled in, and that is in the production of smart mobile phones and tablets. MSFT now has to start producing its own mobile phones and tablets.

Thus far, the few changes seen at Microsoft Corporation (NASDAQ: MSFT) have been the work of Steven Ballmer. However, now that he is reported to be on his way out of the company’s top management, it seems that a new Chief Executive Officer will bring these changes to fruition. Microsoft reported that it sold 7.4 million copies of Xbox gaming consoles, while still under Ballmer’s leadership. Similarly, the company announced that it sold $893 million worth of Surface tablets, which is double what it posted during the same period a year ago. The new leader will have to exceed this performance.

As Microsoft Corporation (NASDAQ: MSFT) evolves into a maker of devices and provider of online services, this is good news for all its investors.

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