Microsoft announced that it expects its software revenue to fall to $15 billion in the third quarter, down from $18 billion a decade ago.
But Microsoft is confident that its software business can still grow and is not overly worried about the revenue decline.CEO Satya Nadella says it’s a long-term investment for Microsoft, but the company is taking it one step at a time.
Microsoft is targeting revenue of $17 billion in 2020, but with a $10 billion capital spending program that will be implemented by the end of the year.
Microsoft is working with its existing software partners to deliver the software updates and security fixes it needs.
The company has already announced the release of Windows 10 and Windows Server 2019.