Sales of Azure almost doubled
Quarterly revenue Microsoft surpassed analysts’ expectations due to high demand for clouds and office solutions.
Microsoft Corp on Thursday topped Wall Street forecasts for quarterly profit as the technology company signed up more businesses to its Azure cloud computing services and Office 365.
Azure’s growth has propelled Microsoft to the No. 2 position in the $15.6 billion cloud computing market with a 14 percent share, behind AWS’s 32 percent, research firm Canalys estimated in February.
- For three months, the company’s revenue increased by 16% to $ 26.8 billion.
- Net income for Microsoft increased by 35% to $ 7.4 billion, or $ 0.95 per share.
- Analysts Thomson Reuters forecast revenue of $ 25.77 billion and net profit of $ 0.85 per share.
- Significant growth in financial performance Microsoft provided sales of cloud solutions (Intelligent Cloud). The proceeds of this direction increased by 17% and amounted to $ 7.9 billion. Azure cloud platform sales increased by 93%, the company does not give absolute figures.
- Demand for cloud servers is growing, as more and more organizations are trying to reduce storage costs and transfer information to third-party data centers.
- According to the research firm Canalys, in February Azure occupied 14% of the cloud computing market, behind only Amazon Web Services with a 32% share.
- Productivity and Business Processes, which includes office suite Office 365, grew 17% to $ 9 billion.
- Sales of Windows, Xbox and Surface increased by 13%, to $ 9.9 billion.
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.”