Washington – Microsoft is back on top of the technology world after an extraordinary comeback to close the gap with Apple, some three years in a transformation of the final leader of boss Satya Nadella.
Microsoft reclaimed its title as the world's most valuable company when it closed Friday to a higher market value than Apple for the first time since 2010, after a short move ahead of the iPhone manufacturer earlier this week.
On Friday, Microsoft's market value was USD 851.2 billion, having tripled the value since Nadella took over early in 2014.
Apple's valuation was $ 847.4 billion, after falling 20% in the last eight weeks . Not far behind was Amazon ($ 826 billion) and Google's parent account ($ 763 billion).
In the 1[ads1]990s, Microsoft held the crown as a top-tech company and most valuable company when it ran the revolution in personal computers with the Windows operating system
READ: Amazon to start selling the latest Apple products
But later Years have proved to be unclear after spectacular errors in mobile computing, while Apple, Google and Amazon saw their fortunes.
Analysts say patience, diversification and willingness to fail in ventures helped to burn Microsoft's wave.
"Microsoft is shooting all cylinders right now," said Jack Gold, technology analyst with J. Gold Associates.
"Satya Nadella has done a fantastic job in directing them away from the final areas and being more innovative."
Blossoming in the Cloud
Microsoft still draws significant revenue from Windows, the software which controls the vast majority of PCs.
However, it has taken advantage of its position to bring corporate customers to its cloud computing platform known as Azure, and has developed a steady revenue stream from the Office software package for both consumers and businesses.
"Azure has been very big for Microsoft," said Gold.
For companies that already use Microsoft systems for PCs and servers, "it's easy for them to stick to Microsoft, and that's Microsoft's advantage. "
Microsoft has become far less dependent on a single product than before, with strong growth from cloud services and revenue from Xbox game operations, Bing Search, Surface Tablets and PCs, as well as the Professional Social Network LinkedIn purchased in 2016.  It won a $ 480m contract with the US Army last month to deliver HoloLens devices that will help troops use magnified and virtual reality.
It also competes with Amazon and others about a multibillion dollar- contract for Pentagon shuttle services.
The varied revenue stream is in contrast to Apple, which still relies on iPhone sales for the vast majority of revenue and profits.
"Microsoft is pretty well-balanced across a variety of different categories, "Bob O & # 39; Donnell of TECHnalysis Research said.
"For Apple, we've reached the top smartphone and it's a very challenging market. Apple knew that this would happen at a time, and the question is how quickly they can surrender to services."
Microsoft's emphasis on business services does the company is less visible to consumers, but "it means they are not subject to the tech tech nonsense, and their revenue base is more solid and more stable," said Donnell.
Learning from failure
] A major part of Microsoft's transformation came when it was decided to throw in the towel on its W indow mobile phone business after acquiring Nokia's device business but not getting a foothold in the sector dominated by Apple and Google-powered Android smartphones.  "I think Satya Nadella performed extraordinarily well," said Roger Kay, consultant and analyst at Endpoint Technologies Associates.
"He put Apple's consumer business and focused on business the sector and the cloud. "
Microsoft's failure in mobile can actually help it to force the company to work with competitive operations Systems, analysts say.
Apple has meanwhile largely demanded its own devices for its services, a strategy that Gold called "uneasy."
"It's the same way Microsoft went a decade ago," he said. "Apple must change it."
The company seemed to move a step towards opening its services the past week and agreed to offer its streaming music to Amazon's Alexa-powered devices.
"Apple has a big record in terms of recovery," said a research note from Gene Munster and Will Thompson from the investment company Loup Ventures.
It's assumed that the company's "next recovery does not involve product replacement, but it will require a shift in mindset to consume Apple products as a service."
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