Microsoft’s wager On The Cloud Is Paying Off

Barely two years into Satya Nadella’s tenure as Microsoft CEO, the as soon as-passé tech giant continues to gain ground, as evidenced with the aid of Thursday’s quarterly revenue document. Nadella has shifted so much of Microsoft’s focal point to its cloud business, a call that seems to be propelling the corporate forward in spite of declining income this previous quarter.

Microsoft’s overall revenue fell to $25.7 billion, partly because of the corporate dialing again its failed smartphone trade closing summer season. but all the way through the revenue name, Nadella and other Microsoft pros wired the success of the corporate’s cloud computing platform, Azure, and productivity device, place of work 365—both of which confirmed vital boom. Azure’s income jumped one hundred forty%, while office 365 expanded via 70% and now boasts 20.6 million shopper subscribers.

on account that Microsoft stories its Azure earnings within what it calls the intelligent Cloud division, it can be uncertain how so much Azure, specifically, raked in; the cloud unit as a whole, however, brought in $6.3 billion, a 5% increase from final year. similar goes for office 365, which falls beneath the umbrella productivity class that drew $6.7 billion in income (a 2% decrease).

Amazon—which also introduced its earnings this afternoon—published lately that its competing cloud computing product, Amazon web services, is apparently rising at a slower charge than Microsoft’s product, despite being the industry leader. The provider brought in $2.four billion in earnings, up sixty nine% from final 12 months.

Nadella additionally shared that home windows 10 was once now powering greater than 200 million units, a host that Microsoft hopes will hit $1 billion in the following few years.

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