Microsoft Cloud Services Surprises Everyone
Microsoft is currently going through a great transition. The largest software developer experienced numerous losses in order to flourish in the mobile market.
Reports reveal that Microsoft generated a large number of revenue in the third quarter of 2014. This great ascend in profits occurred due to the increase in sales in the mobile phone arena. Moreover, the Surface tablets and software departments gave rise to the profits of the company.
On Thursday, Microsoft reported economic first quarter earnings of the company. The company claimed 54 percent shares which is less than the share ration of last year. In 2013, Microsoft share touched 62 percent. This ratio evidently demonstrates the contentment of investors who earlier believed that the lower margin cloud services are not beneficial for the company.
However, Microsoft did not unveil the first quarter revenue produce by the cloud based services. It merely stated that cloud sales mounted up to 128 percent. However, the Azure cloud platform services increased up to 121 percent
On the flip side, the sale soared up to 25 percent as compared to the proportion of 2013. The company earned nearly $23.3 billion in the sales division.
This incredible performance of Microsoft is a result of the deal with Nokia. The firm acquired the handset maker at a large amount of $7.2 million in the month of April. The hardware sector of Nokia gained a lot of attention of the people after the launch of Nokia Lumia series.
Daniel Ives, an analyst at FBR Capital Markets expressed that the last month result was a real success for the industry. Microsoft did not follow the path of other tech companies such as Oracle, EMC, VMware and IBM.