Menu
Azure and Office shine as Microsoft reports bumper financials

Azure and Office shine as Microsoft reports bumper financials

Much of Redmond’s recent growth has been fuelled by its cloud computing business

Satya Nadella - CEO, Microsoft

Satya Nadella - CEO, Microsoft

Microsoft has topped Wall Street forecasts for quarterly profit as the vendor signed up more businesses to its Azure cloud computing services and Office 365 productivity suite.

Much of Redmond’s recent growth has been fuelled by its cloud computing business as more enterprises seek to cut data storage costs by adopting cloud-based software and moving their applications to data centres.

The company's flagship cloud product Azure, which competes with Amazon’s dominant cloud infrastructure offering Amazon Web Services (AWS), recorded revenue growth of 93 per cent in the third quarter ended 31 March.

“Microsoft on the heels of Azure is gaining further steam in this massive secular cloud shift, and the results speak to that," said Daniel Ives at research firm GBH Insights.

Azure's growth has propelled Microsoft to the no. 2 position in the US$15.6 billion cloud computing market with a 14 per cent share, behind AWS's 32 per cent, research firm Canalys estimated in February.

Microsoft shares, which are up almost 40 per cent over the past year, rose slightly after closing 2.1 per cent higher at US$94.26.

Revenue at Microsoft's productivity and business processes unit, which includes Office 365, rose 17 per cent to US$9 billion, topping analysts' average expectation of US$8.73 billion, according to Thomson Reuters.

Meanwhile, revenue for Microsoft's More Personal Computing unit rose 13 per cent to US$9.9 billion, including a 32 per cent increase for its Surface business.

Kristin Chester, senior finance manager of Microsoft investor relations, said the growth was "better than expected" and stemmed from the business's evolving product portfolio.

Microsoft "refocused its efforts and catered to a productivity audience with a Surface that is both a tablet and a PC," said Rebecca Wettemann, an analyst with Nucleas Research. "Apple is still playing catch up to that."

Overall, the Redmond, Washington-based software maker's revenue rose 16 per cent to US$26.82 billion, ahead of expectations of US$25.77 billion.

Net income rose to US$7.42 billion, or 95 cents per share, from US$5.49 billion or 70 cents per share, in the year-ago quarter. Analysts had expected earnings of 85 cents per share.

(Reporting by Salvador Rodriguez in San Francisco and Laharee Chatterjee in Bengaluru; Editing by Sai Sachin Ravikumar and Richard Chang)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftSatya Nadella

Brand Post

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments