Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Microsoft NZ, HP NZ results highlight move to cloud services

Microsoft NZ, HP NZ results highlight move to cloud services, waning demand for PCs

By Suze Metherell

May 29 (BusinessDesk) - Microsoft New Zealand, the local arm of the world’s biggest software maker, lifted sales and profit last year while Hewlett Packard's local unit extended its losses, highlighting increased demand for cloud-based services and weaker sales of personal computers.

Sales at Microsoft NZ rose 2.9 percent to $78.5 million in the 12 months ended June 30, 2013, according to its annual report filed with the Companies Office. Profit rose 10 percent to $8.05 million.

“More and more we are seeing our customers move rapidly, and I’m talking triple digit year-over-year growth consistently, to the cloud,”,Frazer Scott, director of marketing and operations at Microsoft NZ, told BusinessDesk. “It fundamentally changed how our revenue and our marketing and resourcing stacks up as we move into that model.”

Washington-based Microsoft's fastest growing products were public cloud services Office 365 and Azure, and the company's New Zealand arm was mirroring that trend, Scott said, without being specific.

The parent company posted its third-quarter results last month, with per-share earnings beating estimates. The shares have gained 7.4 percent this year, twice the pace of the Standard & Poor's 500 Index, as investors warmed to the company's strategy to drive more revenue to cloud-based services. Sales of Office 365 and Azure doubled in the quarter.

Microsoft NZ paid a dividend of $7.32 million to its parent, up 45 percent from the year earlier, its accounts show.

Growth in cloud-based software hasn't translated to a pick up in personal computer sales. Hewlett-Packard New Zealand, the local arm of the global PC, notebook, printer and accessories company, has reported its fourth consecutive year of losses.

HP New Zealand narrowed its loss to $14.7 million in the year ended Oct. 31, from a loss of $92.5 million a year earlier, according to its annual report. Sales fell 14 percent to $555.5 million. The local unit didn't declare any dividend payment to its parent.

The Silicon Valley-based parent has posted declining sales for 11 consecutive quarters as the IT company struggles with falling personal computer and printer sales as across the globe consumers shift towards smaller devices like smartphones and tablets. Earlier this month HP announced it would be cutting a further 16,000 jobs, adding to its already flagged 34,000 job losses.

"In order to win in the rapidly-evolving markets where we compete, we have to continue to make HP a more nimble, lower cost, and more customer and partner-centric company," a spokesperson for HP wrote in an email. "We have not stated specific locations or businesses that would be impacted."

HP doesn't comment on the local unit's earnings, the spokesperson said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news