Ripples Advisory, Microsoft Tops Estimates as Azure, Office Products Drive Gains
Microsoft Corp on Thursday topped Wall Street forecasts for quarterly profit as the technology company signed up more businesses to its Azure cloud computing services and Office 365 productivity suite.
Much of Microsoft's recent growth has been fuelled by its cloud computing business as more enterprises seek to cut data storage costs by adopting cloud-based software and moving their applications to data centres.
The company's flagship cloud product Azure, which competes with Amazon.com's dominant cloud infrastructure offering Amazon Web Services (AWS), recorded revenue growth of 93 percent in the third quarter ended March 31.
"Microsoft on the heels of Azure is gaining further steam in this massive secular cloud shift, and the results speak to that," said Daniel Ives at research firm GBH Insights.
Azure's growth has propelled Microsoft to the No. 2 position in the $15.6 billion (roughly Rs. 1.04 lakh crores) cloud computing market with a 14 percent share, behind AWS's 32 percent, research firm Canalys estimated in February.
Microsoft shares, which are up almost 40 percent over the past year, rose slightly after closing 2.1 percent higher at $94.26 (roughly Rs. 6,290).
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