Microsoft Plans to Bring Office Software to the iPad

The new idea makes the company's stagnant stock jump to the highest in a decade.
3:00 | 03/18/14

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Transcript for Microsoft Plans to Bring Office Software to the iPad
Death of a new York and as a financial markets going to their final hours. Tuesday march 18 -- -- story stock and -- stock whose story we are following closely. Microsoft and word that Microsoft is bringing office to the iPad bridging and seemingly impossible gap -- to break it all down. Join regular finance Rick apparently the market likes what it hears about this move by Microsoft. What does that of the stock today. I think -- -- market saying it's about time I mean there's been a lot of talk for years and there have been actual rumors of Microsoft been planning this. Basically moving its big -- big a group of office software developing a personal work on the iPad. The shares are up about 4% today again that's looking like the highest level. Since the year 2000 I believe so -- right around 39 and a -- close to forty dollars. Obviously investors. -- think Microsoft is going somewhere finally it's really been like a decade or more of stagnation for Microsoft but. Moving up today. Well there's a lot of rejoice for all those iPad users out there trying to get some work done on their iPad now -- the Lincoln and of course our bosses will be happier because will be able to. -- make better use of our time at home as well but the big question is can we quantify how much money Microsoft possibly lost. By not being on the iPad so long. Yeah they're there are some analysts estimate it's about 2.5 billion dollars a year -- in revenue they're giving up. Because they're not selling this as an app basically are set of apps for the iPad -- I think like a 150 million ipads out there again. That's a lot of hardware. And Microsoft is just not really been on those machines there are some other ways you can get the software either. Through third party apps workarounds there but they're nowhere like the actual software if you had -- installed the way it might won't work on your computer for example. So what's happening now -- and by the way we should point out Microsoft has not acknowledged this these are rumors this is likely to come and a formal announcement. Sometime next week I believe but for now Microsoft hasn't denied any of this it's been widely reported. So it looks like Microsoft is embracing the most popular tablet device on the market which is the iPad. -- and doesn't -- course those of the reports but obviously investors are like in those reports anyway. I mean by doing this thing is it's somewhat of an admission by Microsoft's part of the defeat for its own surface tablets. I think he could probably interpret it that way you might just say it's an acknowledgment of reality. Which is that the surface has a tiny market share and I think you know Mike Microsoft tried to. LeapFrog the iPad with the surface which has a lot of memory makes a very high powered tablet has gotten good reviews. Very functional and it under prices the iPad but. -- they just for so late to the game that. You know the -- worst were so entrenched by the time they got there we have to remember that. You know so many people were familiar with the iPhone before the iPad arrived in the iPad is very similar. Microsoft didn't have that that a windows and it hardly anybody -- So they just got way behind in this game and admit they just never caught up so in a way they're -- going back to their strength which is software not hardware. And there doing what they have been you know what they did on Mac computers a long time ago which is making the most popular software firm the most popular tablet device out there. That's been one of the -- of course apple all the time is that the device crossover has spent almost seamless that the -- been essentially the same from. Whether it be the -- on the iPad the Mac whenever I mean you touch something it would intrinsically scene it's going to react the same way on whatever device using. But I -- talk a little bit about these reports that are going to be announced next week are expected to be announced next week by the new CEO of Microsoft -- in the Della. A lot of folks as -- is is in line with his focus on the cloud I mean it's the first major announcement that he would be -- -- -- Are we expecting these lofty kind of announcements in the future from them. Well that's the real question. Under his predecessor Steve Ballmer. Microsoft sort of ironic just took this. Almost did this walled garden approach that. You know going all the way back to the 1980s would be a Mac or would it be a PC and had to be one or the other. And Microsoft has just -- you know they've taken a very serve traditionalist approach to trying to figure out how to protect their most viable products how to. How to protect -- market -- this is what's some academics call the innovators dilemma -- which is you've got a big revenue stream. And you don't want to come out with anything that might disrupt that big revenue stream but if you but if you hold onto that for too long. Somebody else is gonna -- it for you and you'll lose it when you have no ability to control what happens so you know what Microsoft has held on a long time saying you know offices are cash cow. And -- and the operating systems obviously. And we're -- -- that as long as we can't any in the cloud is kind of passing -- -- we've -- devices come out we're seeing cloud computing now. Things like Google docs is kind of a way around some of the Microsoft software others are offering that so. This seems to be an effort for Microsoft just take one step into. The interoperability. If you will little bit more of that anyway they I think there's still the -- -- long ways to go with -- with regard to cloud computing things like that. And yet sometimes when I click on my iPad for a video I get that little bizarre icon Adobe Flash. Not able to play on -- at the next big thing. The guy who looks like he's been poisoned bright -- -- I think -- it while Microsoft does not own Adobe Flash that's. Adobe rather. Acrobat it which which -- also publishes acrobats and that's a different company. That would be apple decision really apple has you know Steve Jobs made did -- sort of made a definitive decision -- -- 2009 or 2010. Flash will not run on apple devices because on the computers it was the biggest source of crashes Steve Jobs said back then. He did not he doesn't have anything personal against that company it was it's not like this these two lines shall never -- basically they said. Adobe Flash is an old program billed for PCs and it has not been adopted. To up to be optimize for mobile devices it takes up too much power. Other problems with it and it sounded back -- like apple was saying when Adobe. Gets around to producing video player that -- argued our needs for mobile device you know we'll consider it. That just hasn't happened so I think that's up to apple and Adobe. So maybe -- -- will see what Microsoft is doing say it's time for us to get on the iPad as well. Well one step at a time rival worry about those excel spreadsheets next next week expected anyway. -- I've had regular from Yahoo! finance Rick thanks for joining us really appreciate Nancy of course -- -- -- -- stay with ABC news dot -- headlines. And on -- -- -- in New York.

This transcript has been automatically generated and may not be 100% accurate.

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