You cannot talk about tech and the company ruling the global market without Microsoft featuring heavily in that conversation. They are one of the most valuable brands in the world, thanks to the tens of billions of dollars that they make annually in terms of revenue. As a result of the diverse products and the enormous market shares that they control, Microsoft’s net worth is unbelievably high. They are truly one of the giants in the corporate world and their business is constantly expanding to new and emerging markets.
Microsoft was founded by Bill Gates and Paul Allen in 1976 to sell microprocessors and software they were developing, and it has grown through the years to emerge as one of the leaders of the global business world. The company is known for software and hardware development, and a myriad of web-based services that provide simple and elegant solutions to day-to-day problems, so businesses and individuals can achieve their goals to the fullest extent. Today, Microsoft employs over 114,000 people from all walks of life and has been distinguished as the second-best employer of labor in the world. Let’s take a look at Microsoft’s net worth and how the company makes its money.
How Much Is Microsoft Worth In 2019?
This tech giant is constantly creating innovative products and solutions consumers use almost every day, and they have made tons of money from doing it. Microsoft’s net worth is at an all-time high thanks to the growth of its business lines and the leadership of the company’s new CEO, Satya Nadella. Under his watch, Microsoft has rebounded from the drudgery it seemed to have fallen into and has set out to retake its place as the biggest tech company in the world.
In late 2018, Microsoft sped past Apple and Amazon to become the third company in history to reach a market valuation of $1 trillion. However, the price of its shares have drifted back down, so Microsoft’s net worth as of 2019, is estimated at around $990 billion. That is more than just a lot of money, it is a vast amount of money, and the reason the company is held in such regard. Microsoft belongs to the Big Five tech companies, along with Apple, Amazon, Facebook, and Google’s parent company, Alphabet.
How Do They Make Their Money?
Microsoft’s net worth didn’t magically appear out of thin air. It has taken the company decades and an assortment of goods and services to get to where they are now. In fact, Microsoft has the most diversified portfolio of all the tech companies in the world. Although their mainstay is the development and sales of personal computers, it has other business lines that keep the money flowing in. For ease of understanding, all of Microsoft’s product lines are divided into major segments.
This has to do with both hardware and software technology that is used by consumers such as Microsoft computers, PC accessories, Microsoft Surface, and others. There’s also their gaming system like Xbox and all its attendant hardware and software services, from subscriptions to video games and third-party royalties. The Windows operating system, search advertising, and all Windows related offerings also come under this segment.
Productivity and Business Processes
Microsoft makes money from its products and services created for communications productivity, information, and business purposes. This includes Microsoft Office suite, Skype, Sharepoint, Microsoft Teams, Outlook, OneDrive, LinkedIn, cloud-based applications, as well as the licenses and subscriptions that come with these products.
Corporate and Others
The company also enjoys constant streams of income from its artificial intelligence and research, LinkedIn, Windows and devices group, cloud and enterprise, and office product group.
Another segment that comprises of money-making ventures for Microsoft is their cloud-based services which span across a variety of platforms and devices and features Azure, Microsoft SQL Server, System Center, Microsoft Consulting Services, Visual Studio, Premier Support Services, and Windows Server, amongst others.
Is Microsoft The Biggest Company In The World?
The most serious contenders in the race of the biggest company in the world are Facebook, Amazon, Apple, Alphabet, and Microsoft. Every year, they run circles around each other and try to overtake whoever is in the lead, so it’s difficult to say for certain who is the biggest company of them all.
However, thanks to Microsoft’s recent market evaluation, it appears that Bill Gates’ brainchild is the most valuable company in the world, with just a few billion ahead of its counterparts.