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

 

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Half Empty: Dairy Prices Drop To Lowest Since August 2009

Dairy product prices fell to the lowest level in more than five years in the latest GlobalDairyTrade auction, led by declines in butter milk powder and whole milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news