Microsoft sees the big winner of the macroeconomic crisis in the cloud

Microsoft sees the big winner of the macroeconomic crisis in the cloud

Despite a decline in PC and Windows sales, the tech giant benefited from a healthy fourth quarter for Azure and other cloud-based products and services.

Microsoft Cloud’s quarterly revenue exceeded $25 billion for the first time, an increase of 28 percent compared to the previous year, the company announced. “In a dynamic environment, we’ve seen strong demand, gained share and increased customer engagement for our cloud platform,” said Amy Hood, CFO of Microsoft. The company reported that despite overall healthy growth and optimistic forecasts for the second half of 2022, revenue fell short of most forecasts, partly due to unfavorable foreign exchange rates, production shutdowns in China and curtailment of operations in Russia. Microsoft reported quarterly revenue of $51.9 billion, a 12 percent year-over-year increase. If thin margins count as a win, Microsoft and its investors can be pleased with the company’s fourth-quarter financial results. Revenue and growth fell short of rosier expectations, but were strong nonetheless, with net profit of $16.7 billion, up 2 percent from last year. “We’re not immune to what’s happening in the macro economy broadly. We’re seeing bigger and longer-term commitments, and this quarter we won a record number of deals over $100 million or even over $1 billion. We have more data center regions than any other operator, and in the next year we will launch 10 regions,” said CEO Satya Nadella. However, the current economic situation represents an opportunity for growth for Microsoft, especially in the cloud business. The company sees macroeconomic conditions favorable to the public cloud as businesses seek to do more with less. “IT spending is going to increase because every business is trying to strengthen itself with digital technology to sort of navigate this macro environment,” said Microsoft’s first man. In addition to investing more in the cloud, the company is also working to help customers optimize their accounts to reduce overall costs. “Recovering from the macroeconomic crisis, the public cloud will be an even bigger winner, because it really works as a deflationary force,” Nadella assessed the situation.Hardware, software, tests, interesting and colorful news from the world of IT by clicking here!

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