Satya Nadella: Windows is the "socket" for Microsoft 365 and Xbox GamePass subscriptions

Satya Nadella: Windows is the "socket" for Microsoft 365 and Xbox GamePass subscriptions ...

Windows has remained the focus of Microsoft over the past several years, with cash cows like Office 365, Azure, and Xbox rising to the top of the list. With the PC becoming a mature market with little room for growth, the Redmond corporation gradually turned its focus to making its software and services available on as many platforms as possible.

When the epidemic forced many people to work and study from home, Microsoft scrapped its plans for a cloud-first, lightweight Windows 10X operating system. Instead, the company added some Microsoft Teams sprinkles on it for everyone''s videoconferencing needs. So Windows 11 was born as a revamped Windows experience adapted to the present day.

After years of losing sales, the PC market experienced a slight rise. With this new operating system, there was a possibility for a fresh focus on the core Windows experience and making the PC exciting again. However, Microsoft''s Windows 11 move was never about refocusing on those things, rather than focusing on Windows and Office 365 more effectively.

Satya Nadella, the CEO of Microsoft, confirmed as much during an investor call on her knowledge of the PC market and how Windows plays in it. "I think it''s well understood that Windows is the socket for Microsoft 365," Nadella added. In other words, the value of Windows is directly related to its ability to serve as a means of selling more subscriptions to Microsoft services.

Microsoft is concentrating on establishing Edge to be the first provider of web services with Windows 365. This effort has increased in scope of usage, although it is not enough to challenge Google''s Chrome in a meaningful way.

Despite his beliefs, Nadella believes the PC is alive and well, with no sign of change in the near future.

"The PC remains a vital component in people''s lives," the CEO says. "There will be cyclical demand that we''ll be going through, but the number of use cases is certainly, I believe, structurally increased."

Microsoft claims that over 100 million PCs have been shipped over the last two years, and that consumers and businesses are gradually warming up to Windows 11. There appears to be some disagreement between market analysts, but Microsoft did not attempt to lead by example with an internal release of Windows 11 to more than 190,000 devices. As for Office 365, the company claims 58.4 million consumer subscribers and 348 million commercial-paid seats.

Otherwise, Microsoft''s business expected substantial revenue in the first three months of 2022, with robust growth across all goods categories. Revenue was $49.4 billion, up 18 percent from Q1 2021, but profit was $16.7 billion, up 8 percent from last year. Besides, Microsoft''s cybersecurity business now generates $15 billion, outpacing all other products in terms of growth.

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