Quarterly revenue reviews have never truly been all that scary for Microsoft, but ever since PCs are no longer the it item to have, due to the mobile revolution created by smartphones, tablets and netbooks. So, with less and less places to sale their Windows based products, how much longer will Microsoft be able to make it without seriously adapting to the current trends?
Well, this time they had a scapegoat; a strategy to make Windows useful again. By stopping support to all the XP based line of operating systems, they practically made it imperative that XP users upgrade. So that’s how they kept Windows sales from reaching staggering lows. Even with the XP scapegoat on their side, the profits for Windows still went down by 26% for the regular edition and by 19% for the business edition.
But what really saved the day for Microsoft was the Cloud! This newly found caregiver of finances for the IT companies has managed to save Microsoft as well! Azure, the Cloud sector at Microsoft is quickly gaining territory and is a valid contender for market leader, Amazon Web services and for Google Cloud Computing, that is trying to beat Azure to the top.
What Microsoft Azure brings new to the Cloud are products like the Office 365, that will be a must have for all companies faced with gargantuan amounts of data to sort through. So, while Amazon has clients like the CIA, NASA and the Pentagon, it’s up to the lawyers to help Microsoft Azure make it big.
What Microsoft CEO Satya Nadella hopes to accomplish with the Office 365 is to get clients hooked and then never let go. Furthermore, she points out that once someone buys the program from the Cloud, they will be obligated to buy more sophisticated future versions of it, to be able to keep up.
Microsoft Azure has had an amazing growth this year, by doubling its total revenue to a quota of $ 6.3 billion. And Mrs. Nadella expects the numbers to keep going up from here on!
The actual numbers are the following: shares for Microsoft have gone up by 3.1% and overall sales rose to $21.7 billion, compared to last year first quarter that only brought them $20.4 billion.
So the sluggish route towards demise that PCs are facing is something that has not truly affected Microsoft just yet, all thanks to the puffy bliss that they have found in the Cloud. And knowing Microsoft, they just might be able to find their way all the way up to the top of it.
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