Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • 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
Menu
eWEEK.com
Search
eWEEK.com
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Cloud
    • Cloud

    Microsoft Azure Cloud Revenue Nearly Doubles in Q2 2018

    By
    PEDRO HERNANDEZ
    -
    February 1, 2018
    Share
    Facebook
    Twitter
    Linkedin
      Microsoft Azure Cloud Revenue Spikes

      Betting on a cloud-first product strategy has proven to be a lucrative move for Microsoft.

      On Jan. 31, the Redmond, Wash. tech titan reported revenue of $28.9 billion for its second quarter of fiscal year 2018, representing a year-over-increase of 12 percent and beating Wall Street analyst estimates of nearly $28.4 billion. Net income was $7.5 billion and earnings per share of 96 cents surpassed analyst expectations of 86 cents.

      Somewhat complicating Microsoft’s rosy financials is a $13.8 billion charge the company said was a result of the recently-passed Tax Cuts and Jobs Act. Taking that charge into account, the company reported a loss per share of 82 cents on a GAAP basis.

      Regardless of the tax hit, Microsoft’s cloud remains a big and growing cash cow.

      The Intelligent Cloud segment, which consists of Azure, server products and enterprise services, generated sales of $7.8 billion during the quarter. Azure revenue nearly doubled (98 percent) compared to the previous year, and it appears poised to maintain its momentum as more businesses seek out cloud products to power their next-generation IT workloads.

      “I expect Microsoft to continue to grow the Azure revenues and expect the majority of enterprises to have at least some Azure deployments in the next one to three years,” said Jack Gold, principal analyst at J. Gold Associates, in email remarks sent to eWEEK.

      “With increased use of AI for enterprise workloads (and to compete with Google and others), Microsoft is beefing up Cortana for user interface and back-end AI services running on Azure. I also expect the Azure IoT to help with uptake as companies move into the deployment of IoT.”

      Microsoft’s business software ecosystem is also riding high on the cloud.

      The Productivity and Business Processes segment, which includes Office, Dynamics and LinkedIn, produced sales of $9 billion, a 10-percent increase. Office 365 commercial revenue jumped 41 percent.

      “While many expected to see a migration away from Office as companies moved to the cloud, these numbers show that most companies are sticking with Microsoft for productivity suites, and the move to Office 365 shows a strong trend of moving from on-prem/on-device into the cloud,” Gold said. “I think this will continue to be a growth area for Microsoft.”

      Households are also flocking Office 365. The cloud-enabled productivity software’s consumer sales were up 12 percent and it now boasts 29.2 million subscribers, according to company estimates.

      LinkedIn, the massive professional network that Microsoft acquired in 2016 for $26 billion, posted revenue of $1.3 billion. Although a relatively small part of the Microsoft pie, the Dynamics 365 suite of ERP and CRM solutions experienced a 67-percent rise in sales, showing “that companies see Microsoft as a viable alternative to Salesforce and Oracle, and even to some extent SAP,” Gold observed.

      Finally, the More Personal Computing segment generated sales of $12.2 billion, a two-percent gain. Windows OEM Pro and Non-Pro revenue increased 11 percent and four percent, respectively, while the Windows commercial products and cloud services unit suffered a four-percent decline. Surface sales were essentially flat at nearly $1.34 billion, a one-percent increase. 

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      CHRIS PREIMESBERGER - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      CHRIS PREIMESBERGER - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      EWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      ZEUS KERRAVALA - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      WAYNE RASH - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Info

      © 2020 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.

      ×