Microsoft Corporation’s (NASDAQ:MSFT) CEO Satya Nadella has more than assured the company’s investors that the company’s future remains brighter, emphasizing that the next version of windows will be integrated across various screens. The CEO also assured the investors that the two-money losing units of Nokia Corporation (ADR) (NYSE:NOK) and Bing Search are in line to becoming profitable as early as 2016. The assurance comes as the company posted a 23% increase in commercial bookings, and on premise server licenses were also up by 14%.
Microsoft Corporation (NASDAQ:MSFT) is on a transition path with Satya Nadella trying to push the company’s mobile apps to be available on various devices as a way of attracting a mass audience. Microsoft Corporation (NASDAQ:MSFT) is also planning to increase its investment in R&D as a way of enhancing and encouraging innovation in the company.
“When Satya Nadella took over, he talked about mobile plans saying they have plans for multiple apps to live on the home screen not just talking about windows devices there. They want their apps to be important across multiple devices, he also talked about increasing investment in R&D in the digital life category,” said Jon Frott on CNBC’s ‘Earnings Alert’.
Nadella has also reiterated that Microsoft Corporation (NASDAQ:MSFT) will increase its investment in Azure their cloud offering as the company looks set to compete hand in hand with Amazon.com, Inc. (NASDAQ:AMZN)’s cloud platform. Investment in value-added margins, according to Jon Frott, is one of the ways that Microsoft is trying to grow its profit margins.
Brian Kelly, on the other hand, remains bearish on Microsoft Corporation (NASDAQ:MSFT) prospects despite the upcoming transformations that Nadella has been pushing for since he assumed office. Brian Kelly is taking lots of reservation with Microsoft Corporation’s (NASDAQ:MSFT) trailing benefits on Windows XP, which was seen as an attractive feature in the company in the past. Kelly reiterated that he was not planning to get back into Microsoft Corporation (NASDAQ:MSFT) as an investor anytime soon as there is nothing that excites him in the company as of the moment. Kelly said:
“No, especially the XP benefits trailing off that to me, I mean that was one reason why initially got into it there is nothing that has got me excited right now.”
Nadella has swung into action in the company highlighted by the cutting of 18,000 personnel as a way of transforming the company into a nimble and focused entity.