Microsoft Q1 Revenues Rise in Part Due to Azure Cloud Unit

Microsoft’s sales rose 12 percent to $37.2 billion, with a net profit of $13.9 billion for Q1 of its fiscal year, exceeding Wall Street expectations. Its cloud unit Azure’s revenue jumped 48 percent from the same quarter last year, driving the quarter’s results, said chief financial officer Amy Hood. Much of the dramatic leap in Azure’s use can be attributed to online demands created by the COVID-19 pandemic. Likewise, the company’s gaming content business showed a 30 percent increase in sales from last year. Continue reading Microsoft Q1 Revenues Rise in Part Due to Azure Cloud Unit

Microsoft Cloud Service Revenues Skyrocket Past $50 Billion

Microsoft reported that sales rose 13 percent to $38 billion in its fiscal Q4, for a net profit of $11.2 billion. Largely due to continued demand for its Azure cloud-computing services, both figures exceeded Wall Street expectations. Microsoft’s revenue from the commercial cloud division “surpassed $50 billion for the first time ever in the latest fiscal year.” The company is also the target of a complaint Slack filed with the European Commission, accusing it of using its market power to crush rivals. Continue reading Microsoft Cloud Service Revenues Skyrocket Past $50 Billion

Microsoft: Remote Work Needs Outpace Supply Chain Issues

Microsoft expected the original $10.75-$11.15 billion Q1 forecast for its personal-computing business to be negatively impacted by COVID-19 disruptions, yet the company reported that its PC group generated $11 billion in sales as consumers continue to stay at home. The PC group benefited from an increased demand for remote work and education solutions, as well as a 2 percent rise in Xbox sales, a solid increase from a drop in the previous quarter. Microsoft’s PC business includes licensing revenue from PC sales, its Xbox video-game platform and popular Surface laptops. Continue reading Microsoft: Remote Work Needs Outpace Supply Chain Issues

Microsoft Commercial Cloud Business Drives Record Sales

Microsoft’s gross margins for its commercial cloud business (including Azure and Office 365) grew to 67 percent, driving the company’s robust fiscal Q2 earnings on record sales. Microsoft chief executive Satya Nadella revealed that revenue from this sector grew 39 percent to $12.5 billion. Company executives told analysts that the gross margins percentage will increase this year while margins rose for the fourth consecutive quarter, noting that this reflects the “huge opportunity” selling cloud products and infrastructure. Continue reading Microsoft Commercial Cloud Business Drives Record Sales

Microsoft’s Fiscal Q3 Boosted by Growth in Cloud Computing

Microsoft enjoyed a strong fiscal Q3, ending March 31, with revenue rising 14 percent from a year earlier to $30.57 billion, due largely to a 41 percent growth in cloud computing (now almost one-third of its sales) and a 9 percent uptick in sales of its Windows operating system to PC makers. A 5 percent decline of Windows sales in the previous quarter was due to a dearth of Intel computer chips, depressing PC sales. Chief financial officer Amy Hood said Microsoft also saw “unexpected good performance” in Japan. Continue reading Microsoft’s Fiscal Q3 Boosted by Growth in Cloud Computing

Microsoft Develops Hybrid Cloud Solution Strategy with Azure

Microsoft’s major investment in the cloud is beginning to pay off. In the last several quarters, this sector has grown so fast that the company’s market cap has soared to about $785 billion. Now, Microsoft reported that the results of its latest quarter have exceeded analyst expectations. When Satya Nadella became chief executive, Microsoft’s revenue largely came from marketing its Windows operating system on personal computers. Nadella turned the company towards cloud computing, with Azure as its core offering. Continue reading Microsoft Develops Hybrid Cloud Solution Strategy with Azure

With Gains in Cloud Computing, Microsoft Achieves No. 2 Spot

In fiscal Q2, Microsoft posted gains for its Intelligent Cloud segment, which includes Azure, showing an uptick of 8 percent — or 10 percent accounting for currency fluctuations — to $6.9 billion. Azure revenue has increased 93 percent, more than doubling from the same period a year ago. Microsoft is now firmly in second place, behind Amazon, in cloud computing. Microsoft also enjoyed a 5 percent increase in revenue from licensing Windows software to PC manufacturers and another 5 percent uptick from corporate agreements. Continue reading With Gains in Cloud Computing, Microsoft Achieves No. 2 Spot

Amazon, Microsoft Lead Boom in Cloud Services for Enterprise

As big companies such as General Electric and Netflix close down their data centers and move operations to the cloud, Amazon and Microsoft are enjoying rising revenues in their cloud operations — and increasing competition between each other. In the process, they’re also gaining dominance over rivals including Google and IBM. Recently, GE has reported whittling down its reliance on data centers from 34 to four. Netflix closed its last data center at the end of last summer. Continue reading Amazon, Microsoft Lead Boom in Cloud Services for Enterprise

Microsoft Impacted by Shift to Mobile and Declining PC Sales

Microsoft announced missing financial forecasts on Thursday, putting the blame on the decline of the PC market. The company also acknowledged disappointing sales of its tablet computer, the Surface RT. Mobile devices are affecting PC sales as more consumers are buying tablets instead of PCs for movie watching and basic computing. Microsoft is still gaining slowly in sales to business customers, and has hopes for cloud services. Continue reading Microsoft Impacted by Shift to Mobile and Declining PC Sales