TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentralTechCentral
    NEWSLETTER
    • News

      Eskom to impose more load shedding

      17 August 2022

      Tiger Brands to go solar – to start with four manufacturing plants

      17 August 2022

      Google buys into African e-logistics firm Lori Systems

      17 August 2022

      A new normal is dividing the global chip industry

      17 August 2022

      MTN hires outgoing Icasa CEO Willington Ngwepe into top role

      16 August 2022
    • World

      Chip makers are flashing a big warning for the global economy

      17 August 2022

      Semiconductor boom turns to bust

      16 August 2022

      Tencent plans to offload R400-billion Meituan stake: sources

      16 August 2022

      Ether leaps higher on verge of Merge

      16 August 2022

      Institutions eye crypto but retail investors remain nervous

      15 August 2022
    • In-depth

      African unicorn Flutterwave battles fires on multiple fronts

      11 August 2022

      The length of Earth’s days has been increasing – and no one knows why

      7 August 2022

      As Facebook fades, the Mad Men of advertising stage a comeback

      2 August 2022

      Crypto breaks the rules. That’s the point

      27 July 2022

      E-mail scams are getting chillingly personal

      17 July 2022
    • Podcasts

      Qush on infosec: why prevention is always better than cure

      11 August 2022

      e4’s Adri Führi on encouraging more women into tech careers

      10 August 2022

      How South Africa can woo more women into tech

      4 August 2022

      Book and check-in via WhatsApp? FlySafair is on it

      28 July 2022

      Interview: Why Dell’s next-gen PowerEdge servers change the game

      28 July 2022
    • Opinion

      No reason South Africa should have a shortage of electricity: Ramaphosa

      11 July 2022

      Ntshavheni’s bias against the private sector

      8 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022
    • Company Hubs
      • 1-grid
      • Africa Data Centres
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Cloud computing»Microsoft shares dip as cloud growth slows to below 50%

    Microsoft shares dip as cloud growth slows to below 50%

    Cloud computing By Agency Staff23 July 2020
    Facebook Twitter LinkedIn WhatsApp Telegram Email
    A woman walks past a Microsoft sign at the company’s Seattle campus

    Microsoft’s flagship cloud computing business, Azure, reported quarterly sales growth of under 50% for the first time ever on Wednesday, sending the tech giant’s shares down 2%.

    Revenue in Microsoft’s Intelligent Cloud segment rose 17% to US$13.4-billion, with 47% growth in the Azure component, which includes essential computing and storage services. Analysts on average had expected cloud revenue of $13.09-billion in the fourth quarter ended 30 June, according to IBES data from Refinitiv.

    Azure’s growth is the most direct measure of performance against top cloud rival Amazon.com’s Amazon Web Services, as Microsoft does not break out Azure’s revenue by dollar amount. AWS posted revenue growth of 33% to $10.2-billion, which analysts believe exceeds Azure’s total, for the quarter ended 31 March. IBM, another Microsoft rival, this week beat Wall Street expectations with strong cloud growth.

    Beyond Azure, Microsoft’s results showed how the novel coronavirus is both helping and hurting Microsoft

    Beyond Azure, Microsoft’s results showed how the novel coronavirus is both helping and hurting Microsoft.

    Businesses are investing in cloud technology for remote work, and the videogame Minecraft scored a record 132 million monthly active users as families worked and played from home. But Microsoft’s forecast for some versions of its Office software slightly missed expectations because of weak sales to struggling small and mid-sized businesses.

    “No one can take away from the fact that GDP is going to be negative,” CEO Satya Nadella told investors on the company’s earnings call, referring to US GDP.

    Spending intact

    Microsoft chief financial officer Amy Hood said 12% commercial bookings growth, which reflects corporate contracts for future software and services, was roughly unchanged from the previous quarter and beat company estimates. The figure signals that customers are keeping long-term technology spending plans intact.

    “Our strong position in the cloud has allowed us to have good results and support our customers as they work on the next couple of years of digital transformation,” Hood said in an interview.

    Microsoft’s total revenue rose 13% to $38.03-billion in the quarter, beating estimates of $36.5-billion, according to IBES data from Refinitiv.

    Microsoft CEO Satya Nadella

    The growth was powered by its More Personal Computing unit as more people worldwide used its products to work on Windows PCs and play games on Xboxes during lockdowns. Revenue from the unit, the largest by sales, rose 14% to $12.9-billion, beating analysts’ estimates of $11.46-billion.

    Microsoft said its professional networking site, LinkedIn, was hurt by the weak job market and advertising spending cuts.

    Net income fell to $11.2-billion, or $1.46/share, from $13.19-billion, or $1.71/share, a year earlier.  — Reported by Stephen Nellis and Munsif Vengattil, (c) 2020 Reuters

    Amy Hood Microsoft Satya Nadella top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleMTN Nigeria expects slight margin drop after FX rate shift
    Next Article TikTok founder races to save hit app as Trump threatens ban

    Related Posts

    Eskom to impose more load shedding

    17 August 2022

    Top cybersecurity challenge is inadequate identification of key risks

    17 August 2022

    Acrobat Sign and Microsoft accelerate digital transformation

    17 August 2022
    Add A Comment

    Comments are closed.

    Promoted

    Top cybersecurity challenge is inadequate identification of key risks

    17 August 2022

    Acrobat Sign and Microsoft accelerate digital transformation

    17 August 2022

    HPE SimpliVity: addressing SMBs’ data conundrums

    16 August 2022
    Opinion

    No reason South Africa should have a shortage of electricity: Ramaphosa

    11 July 2022

    Ntshavheni’s bias against the private sector

    8 July 2022

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.