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

 

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news