Microsoft clawed its way back from oblivion by betting big on the cloud rather than focusing on its then-cash cow, Windows. Not only has the company become a big provider of cloud services to enterprises, but it’s also converted as many of its products as possible to the cloud.
Just consider what Microsoft did with Office. Years ago, consumers or enterprises bought a client version of Office for a one-time payment, and then used it as long as they wanted without having to pay again. These days, businesses and consumers more typically buy a monthly or annual subscription, which constantly updates via the cloud.