Strong cloud performance drives bumper Microsoft earnings
Microsoft’s server and cloud services boosted drove better-than-expected revenue year-on-year, as Covid-19-accelerated digital transformation.
The company’s third-quarter earnings report revealed revenue growth of 12 per cent to $37.2 billion with server products and cloud services up 22 per cent “driven by Azure revenue growth of 48 per cent”.
Microsoft’s Intelligent Cloud, which Azure is part of, reported $13 billion in revenue, up 20 per cent year on year, making it the best performing of the company’s three verticals. The other two are ‘productivity and business processes’, which includes Office and LinkedIn, which grew 11 per cent to $12.3 billion, and ‘more personal computing’ (Windows, Xbox etc), which grew 6 per cent to $11.8 billion.
Broken down further, Microsoft’s Surface computers offered a 37 per cent revenue lift, while commercial cloud revenues were up 31 per cent to $15.2 billion. LinkedIn made 16 per cent revenue gains for the quarter.
Losers included Microsoft’s Bing search engine, which fell 10 per cent, and PC demand, which dropped sharply in pro-focused Windows lines by 22 per cent.
Satya Nadella, chief executive officer of Microsoft, said, “The next decade of economic performance for every business will be defined by the speed of their digital transformation. We are innovating across our full modern tech stack to help our customers in every industry improve time to value, increase agility, and reduce costs.”
Amy Hood, executive vice president and chief financial officer of Microsoft, said, “Demand for our cloud offerings drove a strong start to the fiscal year with our commercial cloud revenue generating $15.2 billion, up 31% year over year. We continue to invest against the significant opportunity ahead of us to drive long-term growth.”
The Ultimate Enterprise Technology & AI & Cyber LIVE Event
Do you want to build high-level relationships, gain insider knowledge and leave with the tools you need to drive effective digital transformation within your business? Then you don’t want to miss out on the must-attend hybrid event of 2021 for leaders in forward-thinking enterprises.
At Technology and AI Live, you will be able to hear and engage with C-Level executives at Microsoft, IBM, Salesforce, Capgemini, and more.
How can you attend?
In the post-Covid era, not everybody wants to travel for events. So Technology & AI will be completely hybrid. That means you can attend the event in person or virtually, with no disadvantages to people who don’t make the trip to the Tobacco Dock.
Technology and AI Live is happening in the Tobacco Dock in London, a ten-minute walk from Tower Bridge. For more information on the location, click here.
There’s no need to worry about missing out if you choose not to attend in person. You can still absorb all the information, interact with other attendees and enjoy the conference experience on our virtual platform.
There will be live feeds from all of the stages (also available on-demand after the event) as well as virtual networking areas. So not being able to travel is no reason to miss your chance to gather with the industry.
Cyber Technology Officer at Dept of Navy USMC
Renata Spinks leads an extensive portfolio focused on information technology, policy, investments, cyber operations (defensive and offensive), as well as organisational leadership for the Marine Corps Network and Information Enterprise. She is an accomplished, collaborative thought and action leader focused on results and accomplishing the mission through modernised digital transformation and workforce development.
She takes pride in making others better and trailblazing opportunities for girls and women in STEM and is the 2020 Stars and Stripes Becoming Everything You Are (BEYA) SES of the Year.
VP AI & Governance Automation at IBM
Steven Eliuk’s teams are responsible for IBMs Global Privacy Services, think GDPR, CCPA, etc. and how the company manages the data assets, business units, and requests. Likewise, how to apply automation to aid this complex space.
Before joining IBM, Steven led the design of high-performance computing (HPC) infrastructure for AI and launched the first model parallel distributed training framework for HPC at Samsung Research America. He has presented at many events, including IBM Think, IBM CDO Summit, Nvidia GPU Developers Conference, IEEE, and more.
For tickets and information, head over to our event site.