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Microsoft has surpassed Google's parent company Alphabet Inc to become the third most valuable company in the world. Microsoft is now valued at $760 billion while Alphabet Inc is valued at $746 billion. The only two companies ahead of Microsoft are Amazon, which has a net worth of $788 billion, and Apple, which is valued at $922 billion.

According to reports, Microsoft's stock price has more than doubled since Steve Ballmer announced his retirement and Satya Nadella took over as the chief executive officer of the company. Under Nadella's guidance, Microsoft has refocused its energy on technologies like cloud computing, artificial intelligence (AI), mixed reality, and quantum computing. In fact, Microsoft's cloud computing platform, Azure, has emerged, as a strong competitor to Amazon Web Service (AWS).

During past four years, Nadella has not only diversified the sources of business but also axed company's revenue cutting sources like its Windows phones and brand Nokia. The company has also stopped keeping Windows in the heart of everything.

Industry insiders say that that culture at Microsoft has changed dramatically since Nadella took over the company. In Nadella rein, the company has become more open to partnerships, which includes collaborations with other multinationals like Adobe. Nadella has also reorganised internal structure of Microsoft-- all of which has increased the ease of doing business with the company.

As mentioned earlier, Microsoft has strategically diversified its revenue sources. As per its recent filings, Microsoft's generated revenue from three primary sources. While 33 per cent of its revenue came from services such as Office and LinkedIn, the company earned 28 per cent of its profits from its cloud services, and nearly 38 per cent of its revenue came from Windows, Surface and its gaming division. Alphabet by contrast earned nearly 86 per cent its revenue from Google Ads. Apple, on the other hand, earned about 70 per cent of its revenue by selling iPhones.

While Microsoft and Google have traded places before back in 2012, some experts estimate that the company's cloud computing business could double in coming years which could push the company towards becoming a $1 trillion company.

Source : 1