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Wednesday 28 October 2020
The boom in cloud business with IT services keeps software giant Microsoft on the path to success. In the last fiscal quarter, profit increased 30 percent over the same period last year. The group clearly exceeds the expectations of Wall Street analysts.
The world’s largest software company, Microsoft, is benefiting from the trend to work from home triggered by the corona pandemic. Crisis-accelerated digitalization and use of cloud services pushed sales up 12% to $ 37.2 billion in the last quarter, the US company announced after the market closed.
Since the outbreak of the pandemic, Microsoft has not only scored points with its cloud solutions and Teams program for cross-location work, but also with old successes like the Windows operating system, which was recently installed on laptops, and the console. XBox game.
The LinkedIn professional network, which also belongs to Microsoft, increased its revenues by 16%. After unsuccessful attempts to purchase the TikTok short video app, Microsoft swallowed US game developer ZeniMax Media for $ 7.5 billion in September, which includes hit titles like “Doom” and “Fallout”.
The cloud business is booming
Microsoft takes advantage of the fact that the Redmond company has been expanding its cloud business for many quarters and is now benefiting from the fact that more and more companies are giving up their expensive data centers. Instead, they prefer to use the services of cloud platforms, which provide them with storage space and applications on external servers. With Azure, Microsoft has risen to number two in the market behind Amazon’s AWS.
In the first fiscal quarter to the end of September, Azure grew 48%. On Thursday, Google and Amazon, among others, will release their data and provide an overview of the last quarter. On Wednesday, competitors – unlike Microsoft – must take part in a hearing before a U.S. Senate committee and answer questions about market power, among other things.
Microsoft’s share increased after hours by 1%. Both sales and profits, which rose 30% to $ 13.9 billion, were above analysts’ expectations. The company increased its market value by a third this year to $ 1.6 trillion.
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