Menu
Microsoft's Azure cloud business slows amid intense competition

Microsoft's Azure cloud business slows amid intense competition

The business faces intense competition from Amazon.com's AWS and Alphabet's Google

Credit: Dreamstime

Microsoft's Azure cloud business showed slower quarterly growth even as the software maker topped estimates for profit and revenue, indicating that the company may be facing intense competition in its fastest-growing business.

Revenue from Azure increased 59 per cent in the quarter ended 30 September, but came in well below last year's 76 per cent growth.

Since Chief Executive Satya Nadella took over in 2014, Microsoft has been diversifying from its Windows operating system software, and has focused on its cloud services, in which customers move their computing work to data centers managed by Microsoft.

Strength in that business powered Microsoft's market value past US$1 trillion for the first time in April. However, the business faces intense competition from Amazon.com's AWS and Alphabet's Google.

Worldwide spending on cloud infrastructure services increased nearly 38 per cent year-on-year in the calendar second quarter of 2019 to US$26.3 billion, according to data from research firm Canalys. Amazon Web Services (AWS) still dominates the market with a 31.5 per cent share, with Microsoft coming in second with an 18.1 per cent hold over the market.

Microsoft's shares, up 34 per cent for the year, were 0.5 per cent lower in volatile after market trading.

Revenue from the tech giant's personal computing division, its largest by revenue, rose 4 per cent to US$11.13 billion. The unit includes Windows software, Xbox gaming consoles, online search advertising and Surface personal computers.

The software maker's net income rose 21 per cent to US$10.68 billion, or US$1.38 per share, while total revenue rose 14 per cent to US$33.06 billion.

Analysts had expected a profit of US$1.25 per share on revenue of US$32.23 billion, according to IBES data from Refinitiv.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Saumyadeb Chakrabarty)


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 MicrosoftGoogleazureAWSGoogle Cloud Platform

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments