$1T Rank Signals Positive Refocus of Company Culture

Microsoft became the third major tech company to exceed a trillion dollars in value last week, following Amazon and Apple, which reached that pinnacle last year. However, the software company has shifted its business strategy and the way it operates to stay competitive long-term in a high-growth marketplace where other tech behemoths are eager to steal its business.

A strong earnings report for the first quarter of 2019 boosted Microsoft into the rarified “trillie” space for less than a day of trading, reflecting a 34% rise in its stock this year so far. Analysts attribute the company’s financial gains to stronger than expected sales and profits.

The company has created a more open office space with teams working together as it attempts to become more flexible, “agile” and able to adapt its products in an increasingly faster-moving marketplace for computers, tablets and phones, according to an in-depth story in TheVerge.com. In June of 2018, Microsoft bought GitHub for $7.5 billion and is allowing its developers to share and collaborate with the younger, more mobile hosting service company to change its internal culture.

The changing company focus has demonstrably led to results for the hardware division, which reported a 21% increase in profits for new versions of Surface tablets, computers and headphones. While the new additions, introduced last fall, boosted sales over the Christmas holiday, future sales may not be as brisk. Microsoft, however, has one more product it plans to launch this year⏤Surface Hub 2, a follow-up to its Windows 10-powered interactive conference computer. It will ship in June at a starting cost of $9,000.