The company beat Wall Street expectations for its first quarter ended Sept. 30, with pandemic-induced demand for the software giant's cloud-based services driving sales.
Azure's growth rate is the best direct measure of competition with rivals such as AWS and Google Cloud as Microsoft does not break out revenue from the cloud-computing unit. The supply chain issues affecting much of the global tech industry had mixed consequences for Microsoft. But Microsoft and its rivals have been unable to keep up with demand because of the global chip crunch. Hood told Reuters the company expects Xbox demand to continue to exceed supply in the company's second quarter, which includes Christmas.
Hood said that the company was able to outperform in the PC market because of its strength in selling licenses for Windows destined for corporate customers, where it gets more revenue per license and has better market share.
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