Microsoft Focus on Cloud Service Raise Its Third Quarter Revenue
Microsoft, a software giant has started to see their new strategy focus is paying off, as they announced their latest quarterly result, last Thursday. Strategy shifting on cloud computing and mobile business has started to deliver a positive result.
In the recent Market Watch, Microsoft was reported to have produced a better than expected outcome. Revenue generated from its Azure cloud service delivered more than double result, and revenue from cloud version of Office 365 software jumped nearly 70%. Overall, Microsoft's cloud business has generated a $5.9 billion revenue in this quarter, an 8 percent rise from the previous quarter. The number is expected to reach more than $6 billion this year.
Microsoft has witnessed dramatic changes in IT business landscape following a decline of the PC and the emergence of new segments - the cloud computing and mobile technology. Microsoft was the master of personal computer software era has seen their crown was taken away with the drop of PC sales. Under a new CEO, Satya Nadella, Microsoft determined to switch their business focus to cloud service supported by mobile business. Integrating smartphones and hybrid laptop into their cloud, and building comprehensive software ecosystem to support Windows 10 that will run on all device in their superior cloud service technology on Windows Azure.
It seems the effort has started to show a progress. With such positive result,Reuters reported that Microsoft's shares rose as much as 9.8 percent, their highest since March 2000.
A very good move was taken by Microsoft when joining hands with long term partner in PC, Dell. As ZDNet reported, Microsoft and Dell announce the rolling out of their "cloud-in-a-box" system. A system that integrates Dell hardware and Microsoft Windows Azure cloud service and Windows server operating system. Such system is dubbed as "Dell Hybrid Cloud System for Microsoft" and the configuration from crate to cloud can be achieved in three hours. Its target market is aimed for "cloud aware" small and medium size business along with government and education. Dell also provides a Dell Cloud Flex Pay for the financing option.
Cloud computing service has been a chosen infrastructure for companies especially small-medium enterprises. With cloud computing, companies would not have to invest a huge amount of money in order to purchase solid IT infrastructure. They could just rent for services provided by cloud service provider for IT infrastructure, and their system will up and running. Currently, Microsoft is listed along with Google and Amazon as the leading provider for cloud services, with global sales expected to rise more than $100 billion in 2016.