Microsoft set an opening record as the Q2 profit eruption

Ride the Cloud

Microsoft Inc. (MSFT) shares are expected to open on record at a record high after the group surpbaded second-quarter earnings expectations due to strong growth in its cloud computing business

The company announced Tuesday afternoon, after closing its operations, a turnover of $ 8.87 billion, up 17.5% to $ 30.09 billion. These gains were fueled by a dramatic 93% increase in sales of its flagship Azure cloud business and strong growth in its productivity and business process unit, including its Office 365 suite, which saw sales grow 13, 1% to $ 9.67 billion. "Our revenue in the cloud has exceeded $ 23 billion in revenue for the year with gross margin growing to 57 percent," said Satya Nadella, CEO, Investor Relations. during a conference call Tuesday night. "The strength of our results reflects the acceleration of innovation and the confidence that customers place in us to fuel their digital transformation."

"I shared our vision of smart cloud and smart edge a little over a year ago, now quickly becoming a reality and impacting every customer in every industry," added Nadella. "All we have accomplished this year has been to accelerate our lead in this new era and the tremendous opportunities ahead."

Action Alerts Plus, which held shares in Microsoft, rose 3.47% in New York on Friday, indicating a record opening bell price of $ 108.02, a move that would extend the stock's progress nowadays. at 25% and evaluate the group based in Redmond, Wa. at just under $ 830 billion.

Cloud computing revenues are becoming one of the most important components of technology revenues, as companies around the world reduce their costs by moving their information to servers "Cloud" remote. [19799002] The German SAP SE (AP) has increased its forecast of full-year and short-term cloud computing sales as the largest technology company in Europe launches into a strong $ 15 billion market dominated by Amazon Inc SAP (SAP) said its second-quarter cloud-related sales reached just over 1.22 billion euros ($ 1.42 billion) in the third quarter ended June, up 40% compared to the same period last year. badyst forecasts. Although software licensing and support sales still account for the largest part of SAP sales, 3.73 billion euros, this share has only increased by 3% over the previous year. last year, specified SAP

. The German-based group will focus its growth forecast of sector-wide sales throughout the year to 34% to 38%, ultimately leading to subscription revenues and cloud services between 8, 2 and 8.7 billion euros by 2020.

However, Microsoft's 16% market share in cloud computing is derisory compared to the 32% position owned by Amazon Web Services

the titan of the industry. AWS, which accounts for just over 10% of Amazon's global business turnover, saw its sales rise 49% over the same period last year to 5.44 billion. dollars in the three months ending in March.

M. Rometty said that Cloud's business turnover has reached $ 18.5 billion over the past four quarters, a figure that accounts for just under half of its "strategic imperatives" and a quarter of its figure d & # 39; business. "We have been successful in helping enterprise customers move to the cloud and we are becoming the destination of critical workloads in hybrid environments.