Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Nothing nebulous about Microsoft's cloud-transition

Four years ago Microsoft lost its mojo. The software giant had failed to compete in web search.

People questioned whether Microsoft was on an IBM-style path to irrelevance. When the phone business flopped, it looked like Microsoft's time in the sun was over.

Today it is back. The 2017 Microsoft is a different beast, the main reason for its revival is a successful transition to selling cloud computing services. Microsoft's birth isn't yet on the same scale as Apple which came back with the iPhone, but that can still happen.

This week Microsoft reported quarterly profits that are more than twice the level of a year earlier.

It's not all good news. Some of the jump was down to the company realising a tax benefit after writing off its failed mobile phone business.

Fast growing cloud business


Yet that's the past The important part of the quarterly announcement is that Microsoft's cloud business is growing at a clip. That was enough to send the share price up three percent.

This wasn't the first quarter where Microsoft's cloud business was the star of the show. It's been climbing for years now. In the latest quarter Intelligent Cloud revenue was up 11 percent to US$7.4 billion. Revenue for the company's Azure cloud services was up almost 100 percent.

While Azure still trails behind Amazon Web Services, there is clear blue sky between Microsoft and the next set of cloud service providers. Being second in the most important market of the day is a huge win for Microsoft.

Azure profits


At the same time, cloud economics means it is close to a winner takes all game. Amazon and Azure share almost all the cloud profits.

The other cloudy good news from Microsoft is that revenue from the cloud version of Office 365 went past traditional software sales for the first time. There are now 90 million Office 365 users on iOS and Android. That is a big thumbs up for CEO Satya Nadella's decision to support non-Microsoft operating systems.

Although Microsoft is doing a better job of transforming than rivals like IBM, Oracle or Google, it isn't in the clear yet. Sales of Surface devices fell two percent during the quarter. Meanwhile enterprise service revenues fell. Yet it appears to be keeping pace with AWS, that's something no-one else can manage.

Nothing nebulous about Microsoft's cloud-transition was first posted at billbennett.co.nz.

© Scoop Media

 
 
 
Top Scoops Headlines

 

Kīngitanga: 160 Years Of Māori Monarchy

New Zealand’s Māori king, Te Arikinui Kiingi Tūheitia, recently celebrated 160 years since the installation of the first Māori monarch, Pōtatau Te Wherowhero, at Ngāruawāhia on the Waikato River in 1858. More>>

Gordon Campbell: On The Kavanaugh Case And Women’s Suffrage

On suffrage day when – reportedly – we celebrate women winning a political voice, and ensuring that their voices are heard, respected, and acted upon, despite all the attempts to ignore and silence them. More>>

Gordon Campbell: Are Only Old People Likely To Vote For Simon Bridges?

Around the world, young people seem to be gravitating to left wing policies and parties, leaving the old to prop up the conservative parties... the size of the gap suggests there’s more involved to this evolution than the usual clichés about the young being idealistic and the old being more realistic. More>>

Gordon Campbell: On The Fuss Over The PM’s Pacific Forum Trip

Truly, the abuse being levelled at PM Jacinda Ardern for doing her job at the Pacific Islands Forum shows just how much – and on how many levels – Ardern seems to enrage a goodly number of citizens. More>>