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How Microsoft is Transitioning to a Service Company

Microsoft used to sell software to customers as one-time purchases. Its operating system Windows and its productivity suite Office were its mainstays. But these days, single-sale software is going by the wayside. To keep up with the times, Microsoft is transitioning into a service company. It still sells software, but it would rather sell it as a living product customers pay for monthly.

One of its big new ventures is Teams, a competitor to Slack, the ubiquitous app that lets remote team members work together from anywhere in the world.

From TechCrunch:

To see Microsoft invest in its own tool that competes with Slack isn’t surprising. There is a large market for the product, and Redmond is loath to let any rival service cut in on its productivity revenue.

Therefore, if there is a hot productivity tool in the market and Microsoft isn’t going to buy it, it might as well build one of its own. Unsurprisingly, the company has been hard at work doing just that.

Read the full article here.