Microsoft’s Transactions Fuel Cloud Services

Microsoft boss Satya Nadella will make the Windows company a cloud company – and has success, the business is growing. Is the conversion of Microsoft’s but still in full swing, and that the debacle with the Nokia deal loaded the company still.

Microsoft surpassed the expectations of investors thanks to the focus on the cloud business in the last quarter. The group reported a profit of well $3,122 billion according to red figures of around 3.2 billion dollars In the past 4th quarter of Microsoft’s fiscal year in the same period of the previous year. Last year, Microsoft had written off $ 7.6 billion due to the take-over of Nokia and announced the dismissal of 7800 employees.

Operating profit was $ 3.08 billion, in the same period of the previous year was a loss of $ 2,053 billion in the books. Sales decreased mainly due to the widespread phase-out from the Smartphone hardware business by seven percent to 20,614 billion dollars, as the Windows giant announced after the US market close on Tuesday. Investors rewarded the figures in a first reaction with a pre-around 3.5 percent.

In the clouds

The cloud business with services from the net revenues increased from 6.4 to 6.7 billion dollars. Business with the cloud platform azure have doubled it, it was called: azure, revenues had increased by 102 percent.

CEO Satya Nadella relies heavily on the cloud business and hence on the future of Microsoft in a world where networking and network services are more important than the operating system and the applications on the each user’s computer. Nadella said the quarterly figures accordingly: the past year had been of central importance both for the transformation of Microsoft itself, as well as its customers put in their own digital transformation.

Hello Windows?

In the Division with the Office-Office programs, there was a increase of about 6.7 to 7 billion dollars. With the Web-based Office 360 subscription sales it alone in business with companies by 54 percent.

Where the revenue, however, from 9.2 to 8.9 billion dollars dropped the area with the shrinking PC business. Revenues rose nine percent with the family of the surface tablets. With Windows licenses Microsoft could set but once again: increased business with OEM licenses for normal Windows versions by 27 percent, the Pro versions of 2 per cent.

The latter says Microsoft then but, despite the focus on the cloud business. You have exceeded the development on the PC market with the heel of Windows. This is still imbued with shrinking processes, although the decline slowed down somewhat. Windows licenses make up is still an important part of the Microsoft Business (despite the free distribution of Windows 10 to final customers).

Bye Nokia!

In the largely abandoned Smartphone business, there was a drop of 71 percent. Microsoft had taken over the mobile phone division of Nokia – the expectations on a greater role in the Smartphone market did not meet but. Nadella slash the Division, thousands jobs fell away.

The Smartphone hardware, Microsoft adopted almost completely; in the future, only “flagship device” as a kind of example of the possibilities of Windows on the Smartphone will come out. In the past quarter, still loads of 1.1 billion dollars incurred in connection with the cleanup.

Revenues in the business with search engine ads were increased by 16 percent, thanks partly to the use of the new operating system Windows 10 (jk)