Business cloud booming: Microsoft crushes hard

Friday, July 20, 2018

Azure is currently the best Microsoft horse in the stable: the cloud computing platform increases its revenue by 89 %. But even classic PC business functions like a clock after a long period of drought.

The Microsoft software giant has boosted sales and profits through its cloud computing business. In the fourth fiscal quarter (at the end of June), the year – over – year surplus of nearly ten percent to 8.9 billion dollars (7.6 billion euros), as Microsoft announced Thursday after the closure of the US market. Revenues increased by more than 17% to $ 30.1 billion. Analysts' expectations clearly exceeded quarterly figures.

The market reaction was nevertheless relatively limited – after initial price losses, the share quickly turned into positive territory, but could not make big leaps. However, the price had already risen by about 22% since the beginning of the year

"Had an amazing year"

Microsoft can continue to rely on the activity lucrative cloud with IT services on the Internet. In particular, Azure's burgeoning platform for businesses has once again proven to be a growth driver with an 89% sales increase. The results reflect the high level of customer confidence in Microsoft's cloud, "said CEO Satya Nadella. The Linkedin subsidiary also remained on an expansion trajectory and increased its revenues by 37%.

There has also been a significant increase in software, especially the online version of the Office 365 desktop program, which remains in high demand, with revenues up 38%. Even in the classic PC business with the Windows business, things went surprisingly well, with sales up 17 percent to $ 10.8 billion. This business still accounts for most of the revenue, but has since become a brake pad.

For the full year, Microsoft has increased its turnover by 14% to 110.4 billion. On the other hand, net income has plummeted from $ 25.5 billion to $ 16.6 billion as a result of the high special fees stemming from US tax reform. Adjusted operating income increased 21% to $ 35.1 billion. "We had an amazing year," said Nadella, CEO of Microsoft. The first investments in the cloud industry are paying off, they will continue to depend on innovations.

Source: n-tv.de