On Tuesday, Microsoft Corporation (NASDAQ:MSFT) shares were again seen trading in the levels last witnessed during the dot-com boom. Investors pushed the shares up following the report that the company would soon come up with an Office software suite for Apple iPads, which would help the software giant to generate billions in revenue.
Revenue to increase by billions
On Monday, Reuters reported that the new Microsoft Corporation (NASDAQ:MSFT) Chief Executive Satya Nadella would launch the iPad app at an event on March 27, which will be the first biggest public appearance of the new CEO.
On Tuesday, Microsoft shares were up 5$ to $39.90 increasing the market value by $15 billion. At this level, the shares are up around 10% since the appointment of Nadella on February 4. July 2000 was the last time, when the shares touched $40.
According to Reuters, citing sources, the iPad and iPhone versions of Office have been ready for several months now, but Microsoft has postponed the release due to the iPhone versions of Office, and other things.
Analysts believe that Microsoft Corporation (NASDAQ:MSFT) lost billions of dollars in revenue by not having an Office version for the iPad. In a note on Tuesday, Bernstein Research analyst Mark Moerdler said “We estimate that if 10 percent of the iPad install base were to subscribe to Office then this could add 15 million subscribers and generate $1.1 billion to $1.5 billion in consumer Office subscription revenue per year.”
Rivals making inroads
For long, investors have suggested Microsoft Corporation (NASDAQ:MSFT) to come up with an Office version for iPhones and iPads, and for devices powered by Google’s Android software. Office is one of the most profitable products for Microsoft, but, up till now, the company has glued it to Windows despite lower PC sales. Microsoft’s productivity tools are a common practice among the offices, but the American employees are shifting more towards smartphone and tablets to do their work.
Rival Google Inc (NASDAQ:GOOG), has been making it tough for Microsoft, by offering a free Google Drive application, which includes spreadsheets, presentation and word-processing tools. Apple Inc. (NASDAQ:AAPL), last year, offered updates for its iWork business software free of charge. The updates from Apple included Microsoft’s Excel, Word and PowerPoint, for MacBooks, Mac computers and iPad.