DigitalCIO
No Result
View All Result
  • Home
  • Tech News
  • Market Insights
  • CIO Interviews
  • Events and Conferences
  • Opinion and Analysis
  • Resources
DigitalCIO
  • Home
  • Tech News
  • Market Insights
  • CIO Interviews
  • Events and Conferences
  • Opinion and Analysis
  • Resources
No Result
View All Result
Digitalcio
No Result
View All Result
Home Archive

Microsoft shares hit record highs, powered by growing cloud sales

DigitalCIO Bureau by DigitalCIO Bureau
July 19, 2019
in Archive
0
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

Source: Reuters

Microsoft Corp on Thursday beat analysts’ estimates for fourth-quarter revenue and profit, driven by continued sales increases from its cloud business and sending its shares to all-time highs.

Since Chief Executive Satya Nadella took over in 2014, Microsoft has been shifting away from its Windows operating system software and towards cloud services, in which customers move their computing work to data centres managed by Microsoft.

Revenue growth in Azure was 64% in the fiscal fourth quarter ended June 30, compared with 89% a year earlier and 73% in the prior quarter. Microsoft does not provide an absolute revenue figure for Azure, blending it into its “intelligent cloud unit,” which had revenue of $11.4 billion compared with analyst expectations of $11.0 billion, according to Refinitiv data.

Microsoft also forecasted between $10.3 billion and $10.5 billion in intelligent cloud sales for the fiscal first quarter, with a midpoint above analyst estimates of $10.13 billion. The forecast helped send shares of Microsoft up more than 2.6% to record highs above $140 in after-hours trading.

Cloud growth powered Microsoft’s market value past $1 trillion for the first time in April. On Thursday, Microsoft’s Azure-based business segment for the first time ever reported slightly more quarterly revenue than its Windows-based segment.

“The pressure was obviously on but they executed,” said Hal Eddins, chief economist for Microsoft shareholder Capital Investment Counsel. “The cloud is such a key driver of growth for them and they seem to have painted a big bullseye on the back of AWS.”

In the cloud computing business, Azure’s chief rival is Amazon Web Services, which dominates the industry with a 32.8% market share, according to research firm Canalys. Microsoft has a share of 14.6%, while Google has 9.9%.

Microsoft has also gained ground in the past year by bundling its Azure computing service for developers along with Office and other software products for end users, such as in the more than $2 billion cloud deal it signed with AT&T Inc earlier this week.

Microsoft has tried to set itself apart from AWS by combining its traditional software that runs in a customer’s own data centre with its Azure products, a strategy that Chris Voce, analyst at Forrester, said helped power the company’s results.

“Its hybrid cloud strategy has resonated with enterprises where this is a more realistic and flexible approach,” Voce said.

Revenue in Microsoft’s productivity software unit jumped 14.3% to $11.05 billion, driven by double-digit revenue growth for LinkedIn and Office 365. Analysts on average had expected revenue of $10.71 billion, according to IBES data from Refinitiv.

Meanwhile, its personal computing division, home to Windows software, rose to $11.3 billion, compared with analyst estimates of $10.98 billion. The unit also includes Xbox gaming consoles, the Bing online search service and Surface laptops.

Mike Spencer, head of investor relations at Microsoft, said Windows results were fuelled by customers upgrading from Windows 7, which will be retired next year, and the result of some PC customers stockpiling inventory in anticipation of possible tariffs.

“What we’ve seen is there was even maybe more pent-up demand than we anticipated,” Spencer said. He said the company did not feel any impact from sales restrictions placed on Huawei Technologies Co Ltd by the U.S. government.

Share30Tweet19
DigitalCIO Bureau

DigitalCIO Bureau

Recommended For You

Pax8 Introduces Era of Managed Intelligence

by DigitalCIO Bureau
June 19, 2025
0
Pax8 Introduces Era of Managed Intelligence

Pax8 has released its inaugural research report, The Agentic Inflection Point: And the Rise of the Managed Intelligence Provider. The comprehensive study defines the future of small-to-midsized business (SMB) operations, transformed...

Read moreDetails

Barracuda Unveils AI-Powered Cybersecurity Platform BarracudaONE in India

by DigitalCIO Bureau
June 3, 2025
0

Barracuda Networks has unveiled the BarracudaONE AI-powered cybersecurity platform. BarracudaONE maximizes threat protection and cyber resilience by unifying layered security defenses and providing deep, intelligent threat detection and response for...

Read moreDetails

Check Point Acquires Veriti To Minimize Digital Vulnerabilities

by DigitalCIO Bureau
May 28, 2025
0
Check Point Acquires Veriti To Minimize Digital Vulnerabilities

Check Point Software Technologies has announced a definitive agreement to acquire Veriti Cybersecurity, the first fully automated, multi-vendor pre-emptive threat exposure and mitigation platform. “The acquisition of Veriti...

Read moreDetails

Vats Srivatsan named Interim CEO of WatchGuard Technologies

by DigitalCIO Bureau
May 8, 2025
0
Vats Srivatsan named Interim CEO of WatchGuard Technologies

WatchGuard Technologies Chief Executive Officer (CEO) Prakash Panjwani will transition out of his operational role, continuing to serve on the Board of Directors and as a strategic advisor...

Read moreDetails

Google 2024 Ads Safety Report: AI plays key role in safer advertising ecosystem

by DigitalCIO Bureau
April 19, 2025
0
Google 2024 Ads Safety Report: AI plays key role in safer advertising ecosystem

Google has released its 2024 Ads Safety Report, demonstrating how it is using advanced AI technology to create a safe and responsible advertising ecosystem. A notable finding from...

Read moreDetails
Next Post

How AI can Predict Long-term Mortality from Chest X-ray Analysis

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

CISOs Need to Champion AI TRiSM to Improve AI Results

Elastic launches Elastic Cloud Serverless Powered by search AI lake

December 9, 2024

Google faces antitrust case in India over payments app

May 28, 2020

5G Available in 378 Cities Globally, According to VIAVI Report

February 27, 2020

Browse by Category

  • Acquisition
  • Appointment
  • Archive
  • Artificial Intelligence
  • CIO Interviews
  • Cloud
  • Datacenter
  • Events and Conferences
  • Market Insights
  • News
  • Opinion and Analysis
  • Products
  • Resources
  • Security
  • Storage
  • Tech News
  • Telecom
Digitalcio

Welcome to DigitalCIO, your ultimate source for staying ahead in the ever-evolving world of technology and business.

BROWSE BY TAG

Acquisition AI Appointment artificial intelligence Artificial Intelligence and Machine Learning AWS Big Data and Analytics Blockchain CISCO Cloud Computing Cloudflare Commvault CrowdStrike Cybersecurity Dell Technologies Digital Transformation Dynatrace E-books Fortinet Gartner GenAI Generative AI Google Cloud HCLTech Honeywell IBM Infographics Internet of Things (IoT) Kaspersky Microsoft Netskope NTT DATA Palo Alto Networks Panel Discussion Qlik Salesforce ServiceNow Sophos Tenable Veeam Veeam Software Vertiv Webinars Whitepaper Zscaler

CATEGORIES

  • Tech News
  • Market Insights
  • CIO Interviews
  • Events and Conferences
  • Opinion and Analysis
  • Resources
  • Archive

NAVIGATION

  • Home
  • About Us
  • Advertise with Us
  • Contact Us

© 2024 digitalcio.in - All rights reserved.

No Result
View All Result
  • Home
  • Tech News
  • Market Insights
  • CIO Interviews
  • Events and Conferences
  • Opinion and Analysis
  • Resources

© 2024 digitalcio.in - All rights reserved.

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?