Home IT/Telecom Cloud services push Microsoft profit
IT/Telecom - January 27, 2017

Cloud services push Microsoft profit


The shares of Microsoft Corp reportedly rose by 3.6 percent, largely due to the demand of its fast growing cloud computing business the company said on Thursday.

Reuters reported that even though there was a rise in fiscal second-quarter profit on saw a slight decline in margins in the unit that includes its flagship cloud platform Azure.

Shares of the world’s biggest software company were up about 1.1 percent in after-hours trading.

Since taking charge in 2014, Chief Executive Satya Nadella has steered the company toward cloud services and mobile applications and away from its slowing traditional software business.

Gross margins for Microsoft’s so-called “commercial cloud” business, which includes Azure and versions of its online Office 365 product sold to businesses, were 48 percent, said Chris Suh, head of Microsoft’s investor relations.

That is down from last quarter’s 49 percent but up from 46 percent a year ago, Suh said. The figure is watched closely by investors as a sign of the actual profit made of Microsoft’s cloud products, which the company does not publish.

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