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 Applications
    • Applications
    • Cloud
    • Mobile
    • Search Engines

    Microsoft Rides High on Business Software

    By
    Pedro Hernandez
    -
    January 23, 2014
    Share
    Facebook
    Twitter
    Linkedin

      Microsoft handily beat Wall Street estimates in the second quarter of the company’s 2014 fiscal year. On Jan. 23, Microsoft reported earnings of $0.78 per share on profits of $6.56 billion.

      All told, the company generated $24.52 billion in sales during its second quarter, ending Dec. 31. Financial analysts expected the company to book $23.68 billion in revenue and earnings of $0.69 per share.

      Microsoft CEO Steve Ballmer credited the company’s record haul on strong demand from businesses for the company’s enterprise products and healthy adoption of its consumer products during the holidays. “Our Commercial segment continues to outpace the overall market, and our Devices and Consumer segment had a great holiday quarter,” he said in a statement.

      “The investments we are making in devices and services that deliver high-value experiences to our customers and the work we are doing with our partners are driving strong results and positioning us well for long-term growth,” added the soon-to-retire CEO.

      The software giant reported that revenue in its Commercial segment jumped 10 percent to $12.67 billion, compared with the same year-ago quarter. SQL Server and System Center both experienced double-digit growth, while Office 365 commercial seats and Azure’s customer base both surged by more than 100 percent, according to the company.

      “We significantly outpaced enterprise IT spend as we continue to take share from our competitors by delivering the devices and services our customers need as they transition to the cloud,” said Kevin Turner, Microsoft’s chief operating officer. Revenue from its “commercial cloud services more than doubled,” claimed Microsoft.

      “Our commercial cloud services revenue grew more than 100 percent year-over-year, as customers are embracing Office 365, Azure and Dynamics CRM Online, and making long-term commitments to the Microsoft platform,” added Turner.

      During a conference call concerning Microsoft’s financials, CFO Amy Hood said her company continues “to deliver on our differentiated cloud strategy.”

      The picture is a little murkier for the company’s flagship Windows operating system. “Windows Pro revenue grew 12 percent and outpaced the underlying PC market,” said Hood, indicating that adoption among businesses is improving. Consumer demand is plummeting, however. Revenues of “non-Pro” flavors of the OS were down 20 percent, she said.

      Nonetheless, the company’s Devices and Consumer segment saw a 13 percent boost in sales, year-over-year, to $11.91 billion. Surface revenue shot up to $893 million in the second quarter from $400 million the previous quarter. Soon, Nokia’s handset unit may contribute to those figures.

      Although the Nokia acquisition hit somewhat of a snag in China, Hood said the process is on track. Microsoft continues “to expect that the deal will close this quarter,” she said.

      The company also reported strong sales of 3.9 million Xbox Ones and 3.5 million Xbox 360 consoles. Bing’s share of Web searches hit 18.2 percent during the quarter, and search advertising revenue posted a 34 percent gain.

      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
      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

      IGEL CEO Jed Ayres on Edge and...

      James Maguire - June 14, 2022 0
      I spoke with Jed Ayres, CEO of IGEL, about the endpoint sector, and an open source OS for the cloud; we also spoke about...
      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
      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.
      © 2022 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.

      ×