Cloud Computing Generates Considerable Profit for Microsoft

Microsoft Corporation reported about its quarterly profit last Wednesday. The tech giant revealed that its quarterly profit increased riding on the back of flourishing cloud computing business. Cloud computing has emerged as the central point of focus for Microsoft Corporation.

 The profit margin of Microsoft increased by 21 percent and reached a value of US$ 10.7 billion in the last quarter. Satya Nadella, stated that many f the prominent companies of the world are opting for the cloud technology of Microsoft to improve their digital capacity.

 Offering of Online Platforms and Services Offer Unique User Experience and Revenue

 According to Amy Hood, chief financial officer of Microsoft, revenue that was generated from cloud services was up by more than a third in the quarter and it reached a value of US$11.6 billion.

 According to Patrick Moorhead, analyst at Moor Insights and Strategy, Microsoft did what it had done so many times before, it had crushed it with SaaS and cloud growth. He attributed such high profit of Microsoft generated in this quarter to the investments made in the cloud technology and its capability to cater to the needs of various multinational corporations.

 Microsoft Corporation has found success with the offering of online platforms and services that make a combine the capabilities of smartphones, artificial intelligence, and datacenter computing power all at the user edge of experience, according to Satya Nadella, the CEO of Microsoft.

 However, this strategy is a significant switch from the initial tactic with which the Redmond-based Microsoft Corporation started its journey. It started its journey with selling its packaged software to the users of computers. Back then, it also sold its flagship operating system, Windows, to power the computers.

 However, Microsoft Corporation still licenses its operating system, Windows to computer manufacturers. It is likely to witness increased revenue from sale of increased units of the operating system by the end of this year. The company will stop providing support and updates for Windows 7 version.

Author: Rohit Bhisey

As Head of Marketing at TMR Research, Rohit brings to the table over a decade of experience in market research and Internet marketing. His dedication, perseverance, and passion for perfection have enabled him to achieve immense success in his field. Rohit is an expert at formulating new business plans and strategies to help boost web traffic. His interests lie in writing news articles on technology,healthcare and business.

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