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

 

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO:

New Report: Waitākere Kauri - Look After It, Or Lose It

With no cure for kauri dieback disease and treatment options still being trialled, the Auckland region faces a very real threat – take urgent action in the Waitākere Ranges or risk losing kauri from our forests altogether. More>>

ALSO: