FYI: When Microsoft leapfrogged Apple last month to become the world’s most valuable company, the symbolism was rich, given the pair’s intertwined history.
But the milestone carried a deeper significance about the future: Wall Street has recognized the value of subscriptions over traditional sales.
While Apple investors fret over the latest iPhone sales, the market has rewarded Microsoft for locking in a regular stream of revenue tied to the cloud and its Office 365 franchise. Those old Windows software boxes? They’ve been replaced by shiny mobile apps tied to monthly payments.
Regards,
Ted
https://www.barrons.com/articles/how-subscriptions-are-remaking-corporate-america-1544233694?refsec=cover
