Is Microsoft a good stock to buy?

A: Quick. Name a company that's releasing a new operating system for tablet computers. It's a leader in software and services that work on the cloud, or remote servers. It has software for smartphones that's widely acclaimed.

While investors typically think of Microsoft for its dominant position in desktop computing systems, the company has been working to reinvent itself in an age of mobility and cloud-based services.

The company's upcoming Windows 8 operating system

The company's upcoming Windows 8 operating system, for the first time, promises to bring the power of a desktop to a mobile tablet computer. Microsoft Windows Phone operating system continues to garner kudos from early adopters, especially thanks to the partnership with Nokia. And Microsoft already has a deep expertise in cloud-based systems both for productivity software just as spreadsheets, however also for consumer products, including its free cloud-based storage system called SkyDrive.

The bottom line: Microsoft has become the forgotten champion of research. To put it more exactly than just being a story stock, promising great innovation, Microsoft is already delivering cloud-based services for consumers and businesses. During other companies get the press, Microsoft has been spending more money on innovation and development than any other U.S. company.

When will investors, and buyers of innovation notice? Much is riding on the success of the company's upcoming Windows 8. If the operating system is able to turn Microsoft into the only feasible competition with Apple for the fast-growing tablet market, that might give the stock some notice. Nevertheless, Microsoft is a very volatile stock and not for the faint of heart. The stock was crushed while the tech stock crash years ago and has stagnated since. It takes a daring investor willing to stomach risk to take a chance on this one. And much hinges on the success of Windows 8, which is not to be released until later this year.

While Microsoft is known for its dominant position in desktop computing systems, the company has been working to reinvent itself.