Microsoft outperforms quarterly earnings forecast with cloud computing support.
Microsoft surpassed Wall Street’s revenue and profit estimates in the quarterly earnings release on Wednesday as more companies signed cloud computing bundles and provided by the company’s suite of enterprise software.
Overall, the software company’s revenue rose from $ 24.54 billion to $ 29.08 billion, above the average analyst estimate of $ 27.9 billion, according to Refinitiv data. Net income rose to $ 8.82 billion from $ 6.58 billion.
Microsoft’s stock, which rose more than 21 percent in the last 12 months, rose 2.5 percent in the after-market.
Much of Microsoft’s recent growth was boosted by the area of cloud computing, which has benefited from companies seeking to use technology to reduce software and hardware costs.
Azure, Microsoft’s cloud computing service, has 18 percent of the global cloud market, making it the industry’s second-largest service provider after Amazon Web Services, according to April estimates from research company Canalys.
But Microsoft’s flagship cloud computing product posted slower growth than the previous quarter. Revenue growth for the quarter ended September was 76%, down from 89% in the previous quarter.
Microsoft’s focus on cloud platforms and applications is helping to dampen the fall in demand for personal computers, which has affected sales of the Windows operating system.
Further reading: Do We Need To Replace The Cloud With Edge Computing
Revenue from Microsoft’s personal computing division, the company’s largest in revenue, grew 14.6 percent to $ 10.75 billion. This number surpassed analysts’ estimate of $ 10.13 billion. The unit includes Windows, Xbox video game console, online search advertising, and personal computers.
Revenue from Microsoft’s business productivity and business unit, which includes Office 365, rose 18.6 percent to $ 9.77 billion, surpassing analysts’ average expectations of $ 9.4 billion, according to data from Refinitiv.
Paul Allen, co-founder of Microsoft at age 65
He created the company along with Bill Gates and fought cancer. One of the richest in the world, Allen financed philanthropic projects and owned basketball and football teams.
Paul Allen, the co-founder of Microsoft, died on Monday (15), in the United States, at age 65. Two weeks ago he had announced on Twitter that he was again fighting non-Hodgkin’s lymphoma, a type of cancer.
Allen helped found Microsoft in 1975 with Bill Gates and left in 1983 when he was diagnosed with cancer for the first time and made a successful treatment.
In 1986, he created a company called Vulcan, to invest in philanthropic projects and studies in several areas.
Allen had already stated that he would leave most of his fortune for charity. According to Forbes magazine, the entrepreneur, who had a fortune valued at $ 21.7 billion, was the 44th richest person in the world.
The personal computer would not exist without it, Bill Gates said in a statement describing Allen as one of his oldest and most beloved friends.
“I’m heartbroken,” he wrote. “From the beginning together, at Lakeside School, through our partnership in creating Microsoft to some philanthropic projects we’ve done together over the years, Paul was a true partner and dear friend.”
The long friendship between them also had controversy. In 2011, excerpts from a future biography of Allen reported that he accused Bill Gates of trying to buy his stake in the company at a bargain price.
He said he later received apologies from Gates and former Microsoft CEO Steve Ballmer about the incident.
In 2013, Allen and Gates recreated the classic computer-themed photo of 1983, the year they licensed the MS-DOS system to IBM. They redid the pose during Gates’ visit to the Computer Living museum, founded by Allen in Seattle.
“He deserved much more time, but his contributions to the world of technology and philanthropy will live for generations,” Gates added.
After winning the first battle against cancer in the 1980s, Allen announced in 2009 that he was treating new cancer, now a non-Hodgkin lymphoma, that originates in the lymphatic system, which is the body’s network for fighting diseases.
On the last day 1, Allen posted on his Twitter profile that the cancer had returned.
“I recently learned that the non-Hodgkin’s lymphoma that I fought back in 2009. I started the treatment and my doctors are optimistic that we will have a good result.
From space to sports
Allen sponsored initiatives in several areas. One of the most recent projects is the Stratolaunch, which aims to be the largest aircraft ever created to replace space shuttles.
The billionaire also invested in sports and owned the Seattle Seahawks, the professional football league (NFL), the NBA basketball team Portland Trailblazers, and was a minority partner of the Seattle Sounders, football.
In addition, Allen loved music and played guitar.
“My brother was a remarkable guy at every level. While most knew Paul Allen as technology and philanthropist, for us he was a brother and a loved one, and an exceptional friend,” said Jody Allen, co-founder of Vulcan.
“Our industry has lost a pioneer and our world has lost a great force for good,” said Tim Cook, chief executive of Apple.
Allen was also honored on Twitter from the NFL, the professional football league. with a quote from him: “You look at things you like in life, but much more important is what you can do to make the world a better place.”
Bill Gates, in a statement:
I am heartbroken by the going of one of my oldest and dearest friends. From our first days together, at Lakeside School, through our partnership to create Microsoft, to some of our philanthropic projects over the years, Paul was a true partner and a dear friend.
The personal computer would not have existed without him. But Paul was not content to create a single company. He channeled his intellect and passion into a second act, focused on improving people’s lives and strengthening communities in Seattle and around the world.
He was known to say that “if something has the potential to do good, then we should do it.” This was the kind of person he was. Paul loved life and those around him, and we all loved him back. He deserved much more time, but his contributions to the world of technology and philanthropy will live in the generations to come. I will miss you tremendously.