Cloud computing has given Microsoft a record income in the last quarter, say the company.
The tech giant also said that thanks to a strong performance under the chief executive, Satya Nadella, they now claim to be one of the world’s most valuable public companies.
Rising above the predictions from Wall Street, the company turned a profit of $33.72 billion this period. This was an increase of 12% from the previous quarter.
Thanks to cloud
It’s thought that one reason for the increase was due to the company’s continuous investment in cloud. Over the past 10 years, these ventures have revolutionised the working progress behind the organisation as, rather than buying applications that run on their own servers, customers are renting computer power and paying for subscriptions from Microsoft.
The organisation also feels that offering customers cloud-based versions of its Office productivity suite contributed to the growth in profit. They also mention the reputation of Azure, the world’s alleged 2nd largest cloud service that the tech company provide, for the upsurge.
Brad Reback, an analyst at Stifel, Nicolaus & Co. suggested that the organisation is “a clear winner in the digital transformation trend that corporations of all sizes are now undertaking.” Continuing, “They are a vendor of choice.”
Competition for Microsoft
Accounting for around a third of sales for this period, Microsoft’s cloud computing business increased by 39%.
However, the rise of cloud computing services in other companies may provide a challenge to Microsoft. Google’s sister company, Alphabet Inc. and Amazon’s AWS are also in the running for delivering cloud services to customers.
Research company, Gartner Inc., has predicted that spending on cloud will continue to rise and this year alone will grow 18%.
As for Microsoft, Chief Financial Officer Amy Hood believes there is nothing for them to worry about as she told analysts that they will continue to rise in profit.