Since Chief Executive Satya Nadella took over in 2014, Microsoft has been diversifying from its Windows operating system software, and has focused on its cloud services, in which customers move their computing work to data centers managed by Microsoft.Strength in that business powered Microsoft’s market value past $1 trillion for the first time in April. However, the business faces intense competition from Amazon.com Inc’s AWS and Alphabet Inc’s Google.
But Azure was the key metric that missed slightly, said Daniel Morgan, a senior portfolio manager at Synovus Trust Company. Worldwide spending on cloud infrastructure services grew nearly 38 per cent year-on-year in the calendar second quarter to $26.3-billion, according to data from research firm Canalys. Amazon Web Services still dominates the market with a 31.5 per cent share, followed by Microsoft with 18.1 per cent.
The technology company’s personal computing division accounted for the largest share of its revenue, rising 4 per cent to $11.13-billion. The unit includes Windows software, Xbox gaming consoles, online search advertising and Surface personal computers.Windows results were boosted by 19 per cent revenue growth for business computers, which was offset by a 7 per cent decline for consumer PCs.
globebusiness