With the Internet of Things on the verge of becoming reality, Microsoft’s software business will see tremendous growth going forward. Its “Windows and Windows Live” division, which reported a 24% year-over-year increase in revenue in the most recent quarter, will grow by leaps and bounds, because no other operating system will have the ability to integrate hundreds of millions of devices apart from Windows. With the pervasive nature of Windows, which has become even stronger with Windows 8, Microsoft will be in a commanding position.
The “Server & Tools” business should also register impressive growth, with networking being the backbone of the Internet of Things. SQL Server and System Center sales will contribute more to Microsoft’s overall revenue growth.
The Bottom Line
Windows 8 will succeed, and I feel it will help Microsoft regain its market share in the overall OS business, from desktop computing to mobile computing. Once that is done, Microsoft will be firing all cylinders in software.