Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Cloud
    • Cloud

    How Microsoft Is Luring Enterprises to Its Cloud

    By
    Pedro Hernandez
    -
    October 21, 2016
    Share
    Facebook
    Twitter
    Linkedin
      Microsoft cloud

      Microsoft posted strong first-quarter fiscal 2017 results Oct. 20, once again crediting its cloud computing portfolio for lifting the Redmond, Wash., software maker’s fortunes.

      Not too long ago, Microsoft was viewed as a PC-obsessed company that maintained a suffocating grip on its technology platforms. Today, Microsoft is a leading cloud provider that champions some open-source software initiatives, due in no small part to competition from Amazon and the countless number of web-focused startups that disrupted the IT landscape.

      eWEEK asked leading technology analysts what Microsoft’s latest financial results said about the company’s cloud computing strategy. Gartner Research Vice President Adam Woodyer observed that the software giant’s cloud offerings are aligning with the IT requirements of enterprises.

      “It’s clear that Microsoft continues to make progress in the shift to cloud and its hybrid approach to computing in the market is ringing true with customers,” said Woodyer. Embracing a platform-agnostic approach is also paying off.

      “Ultimately, the work Microsoft has done over the past several years to position for a more open platform based on a hybrid computing model is resonating with customers,” he said. “While there are puts and takes in terms of license cannibalization and profitability, Microsoft is a net share gainer in the cloud with a value-add approach that will drive significant growth for the foreseeable future.”

      Jack Gold, principal analyst at J. Gold Associates, noted that Microsoft Azure’s ascendancy is chipping away at Amazon Web Services’ (AWS) reputation as the go-to cloud platform for businesses.

      The company “showed substantial growth in its Azure cloud services and has become a real alternative to many companies automatically selecting AWS by default,” he said. “Also, the shift to online services like Office 365 is moving rapidly, and even more rapidly at the consumer space than I had expected. Businesses are also moving toward online for Office.”

      During an Oct. 20 investor conference call, Microsoft CEO Satya Nadella revealed there were more than 85 million commercial users of its cloud-enabled Office 365 productivity software suite, a 40 percent year-over-year increase. The number of Office 365 consumer subscribers hit 24 million last quarter, compared with 23.1 million in the previous quarter.

      Dave Bartoletti, principal analyst at Forrester, said that while Microsoft’s revenues were essentially flat across the past two sequential quarters ($22.6 billion in Q4FY16 compared with $22.6 billion in Q1FY17), “the steady expansion in Intelligent Cloud is certainly the growth engine.”

      Microsoft’s Intelligent Cloud segment “grew 8 percent to $6.4 billion,” noted Bartoletti. “That’s a continued steady growth and is 116 percent year-over-year growth from this time last year,” he said, adding that “the overall cloud business growth continues to be impressive.” (Intelligent Cloud encompasses Azure, Office 365, and the Dynamics 365 CRM and ERP software suite.)

      Moreover, customers aren’t only turning to Microsoft for cloud basics, they’re coming back for more.

      “When combining Azure with other cloud services such as Office 365 and Dynamics 365, the real driver of success has been premium added features with higher selling prices,” Woodyer said. “So as customers adopt these services, Microsoft has strong pricing power based on the increased functionality of these services.”

      Pedro Hernandez
      Pedro Hernandez is a contributor to eWEEK and the IT Business Edge Network, the network for technology professionals. Previously, he served as a managing editor for the Internet.com network of IT-related websites and as the Green IT curator for GigaOM Pro.

      MOST POPULAR ARTICLES

      Big Data and Analytics

      Alteryx’s Suresh Vittal on the Democratization of...

      James Maguire - May 31, 2022 0
      I spoke with Suresh Vittal, Chief Product Officer at Alteryx, about the industry mega-shift toward making data analytics tools accessible to a company’s complete...
      Read more
      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×