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

Pricey Infrastructure Necessary for Success in Cloud Gaming

In the past two years, nearly every major gaming and technology company has debuted a cloud gaming service, from Microsoft’s xCloud and Sony’s PlayStation Now to Google’s Stadia, Nvidia’s GeForce Now and Tencent’s Start. Even Amazon and Facebook are reported to be considering launching cloud gaming units. Behind the scenes, many experts said that, as cloud gaming grows in popularity, the result could be a so-called infrastructure arms race. Worldwide, there are approximately 2 billion gamers. Continue reading Pricey Infrastructure Necessary for Success in Cloud Gaming

Microsoft Announces Azure-Hosted OpenAI Supercomputer

At Microsoft’s Build 2020 developer conference, the company debuted a supercomputer built in collaboration with, and exclusively for, OpenAI on Azure. It’s the result of an agreement whereby Microsoft would invest $1 billion in OpenAI to develop new technologies for Microsoft Azure and extend AI capabilities. OpenAI agreed to license some of its IP to Microsoft, which would then sell to partners as well as train and run AI models on Azure. Microsoft stated that the supercomputer is the fifth most powerful in the world. Continue reading Microsoft Announces Azure-Hosted OpenAI Supercomputer

Cloud Services Experience Record Revenue, Slowing Growth

According to Canalys, by the end of Q1 2020, companies spent a record $31 billion on cloud infrastructure, 34.5 percent growth from $23.1 billion for Q1 2019. Despite increased spending, however, the growth trajectory is slowing: Q1 2019 showed a 39.3 percent year-on-year (YoY) increase and Q4 2019 a 37.2 percent year-on-year increase. Cloud spending therefore grew only 2.6 percent or $800 million quarter-on-quarter by end of March 2020. Canalys attributes growth to the shift to remote working during the pandemic. Continue reading Cloud Services Experience Record Revenue, Slowing Growth

Pandemic Hastens M&E Industry Adoption of Cloud Workflows

ETC program director Erik Weaver introduced a live Equinix/ETC@USC webinar on “The Future of Media & Entertainment in a Time of Radical Change.” The opening keynote address on cloud workflows, moderated by film/TV media workflow engineer Michael Kammes, featured Microsoft Azure chief technology officer of media & entertainment Hanno Basse and Avid chief executive & president Jeff Rosica. Kammes opened the conversation by asking Basse and Rosica to describe how their companies are experiencing the move into the cloud. Continue reading Pandemic Hastens M&E Industry Adoption of Cloud Workflows

Teradici Enables Remote Studio Workforce for VFX, Broadcast

Presenting as part of yesterday’s Equinix/ETC&USC live webinar, Teradici chief executive David Smith noted that his company has 14 years of experience in creating remote workflows. “These technologies are who we are and what we do,” he said. “We are passionate about visualization workflows and graphic-intensive workflows that involve our GPU partners like AMD, Nvidia and others.” Such remote workflows, he said, “add tremendous value,” especially during the coronavirus pandemic, which has heightened the need for them. Continue reading Teradici Enables Remote Studio Workforce for VFX, Broadcast

Pandemic Tests Big Tech Firms, Slows VC Money for Startups

This week, big tech companies such as IBM and Intel will report quarterly earnings, followed by Apple, Facebook, Alphabet, Amazon and Microsoft next week. Some companies — such as Amazon, Intel, Micron Technology and Microsoft — are doing well, even growing, whereas Facebook and Alphabet deal with a dramatic plunge in advertising. Even Apple issued a “rare profit warning.” The pandemic is hitting startups particularly hard, as venture capital money dries up and they are forced to lay off staff. Continue reading Pandemic Tests Big Tech Firms, Slows VC Money for Startups

Microsoft and NBA Sign Multiyear Deal for AI, Cloud Services

Microsoft and the National Basketball Association have inked a multiyear deal to build a consumer-facing digital platform to debut with the 2020-2021 season. The NBA will utilize the tech company’s Azure cloud computing and artificial intelligence capabilities to customize games and experiences. The deal’s terms were not revealed, but it covers all NBA properties including the Women’s National Basketball Association and USA Basketball. To win the deal, Microsoft bested cloud competitors Amazon and Google. Continue reading Microsoft and NBA Sign Multiyear Deal for AI, Cloud Services

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 Bets on Internet of Things, Ends Xbox TV Feature

Although many observers would name Microsoft’s Xbox as the tech company’s biggest hardware business, chief executive Satya Nadella instead points to the company’s cloud. In fact, Microsoft is building an entire cloud infrastructure from data centers to servers and network stack. Nadella said that he doesn’t want the company to be defined “by what we achieved.” He pointed to the Internet of Things about to emerge. “We look at if there’s going to be 50 billion endpoints,” he said. “Let’s go … and define a strategy for that.” Continue reading Microsoft Bets on Internet of Things, Ends Xbox TV Feature

AWS Previews Alexa Voice Integration For More IoT Devices

At its annual AWS re:Invent conference, Amazon previewed some new products for its cloud platform, Amazon Web Services, most of which related to the Internet of Things, a market expected to be valued at $212 billion by the end of 2019. It’s a natural fit, since, according to a 2018 survey by the Eclipse Foundation, AWS is the most popular cloud platform for IoT developers, growing from 21 percent in 2017 to 51.8 percent today. In comparison, Microsoft Azure’s share is 31.21 percent today, up from 17 percent in 2017. Continue reading AWS Previews Alexa Voice Integration For More IoT Devices

Microsoft Pairs Azure Cloud Platform, Graphcore AI Chips

Microsoft will begin providing customers of its Azure cloud platform with chips made by U.K. startup Graphcore, with the goal of speeding up the computations for artificial intelligence projects. Graphcore, founded in Bristol in 2016, has attracted several hundred million dollars in investment and the attention of many AI researchers. Microsoft invested in Graphcore last December, with the hope of making its cloud services more compelling. Graphcore’s chips have not previously been available publicly. Continue reading Microsoft Pairs Azure Cloud Platform, Graphcore AI Chips

Disney, Microsoft Team Up to Shift Moviemaking to the Cloud

Walt Disney Studios and Microsoft inked a five-year deal to start transitioning filmmaking to Microsoft’s Azure cloud platform, with the goal of complete “scene to screen.” The effort is led by Disney’s StudioLAB. Walt Disney Studios chief technology officer Jamie Voris said the first step will be to move Avid editing tools into the cloud, to facilitate collaboration across locations. Microsoft U.S. president Kate Johnson noted that “we are at the tipping point for cloud in media and entertainment.” Continue reading Disney, Microsoft Team Up to Shift Moviemaking to the Cloud

Amazon Technology Chief Details Rise to Cloud Dominance

Amazon launched its Amazon Web Services (AWS) cloud-computing unit in 2006. AWS generated $8.4 billion in sales in the latest quarter, with operating income up 29 percent to $2.1 billion. Research firm Gartner reported that AWS’ $15.5 billion in annual cloud services is about half of total revenue for this sector last year. Amazon’s closest rival, Microsoft and its Azure cloud service, represents about 15 percent of cloud market sales. Amazon chief technology officer Werner Vogels described the company’s path to dominance. Continue reading Amazon Technology Chief Details Rise to Cloud Dominance

Microsoft Invests in OpenAI to Pursue Challenging AI Goal

With Sam Altman as chief executive, OpenAI, the nonprofit artificial intelligence lab he founded with Elon Musk, has become a for-profit company pursuing investments. In fact, Altman, who stepped down as head of Y Combinator, just inked an impressive $1 billion contract with Microsoft. With Microsoft as a marquee investor, OpenAI will now pursue its lofty goal of creating artificial general intelligence (AGI), a system that can mimic the human brain. Alphabet’s DeepMind lab is also pursuing the creation of AGI. Continue reading Microsoft Invests in OpenAI to Pursue Challenging AI Goal

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