Cloud Activity Spurs Microsoft Revenue Growth
Software and cloud giant Microsoft has seen an 8% increase in revenue in the last quester. The company, which has headquarters in Richmond, Virginia, USA, saw revenue increase to $5.9 billion with projections for the current quarter being as high a $6.3 billion. The increase has been spurred by the growth of Microsoft’s cloud business, which includes its Azure cloud platform. The news drove Microsoft’s shares 9.8% higher in overnight trading.
Microsoft’s current growth seems to point to a success for Microsoft’s CEO Satya Nadella. Mr. Nadella launched the company’s new ‘mobile-first, cloud-first’ direction in November of last year. Alongside the success of its cloud activity, revenue from Microsoft’s Bing search engine increased by 29% over the period. However, other Microsoft divisions have not been quite as successful. Xbox revenue from hardware sales crashed 17% on the same time the previous year, and the company’s Windows OEM revenue fell by 6%.
The extent to which Microsoft can maintain its cloud growth is open to debate. The cloud arena is fiercely competitive with players like Google and Amazon making the cloud a cost-sensitive business. However, the company’s figures suggest a successful transition from dependency on Personal and Business computing software sales to cloud-based solutions. The company had 18 million Office 365 subscribers in the first quarter of 2015. In addition, other cloud-based solutions, like its Dynamics CRM solution, have also seen growth.
What do you think of Microsoft’s cloud growth? Is it sustainable? Let us know your thoughts. Add your comments below.
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