'Cloud' Boosts Microsoft Earnings Beyond Their Expectations

According to the reports published by Microsoft, although their revenue was more than what was forecasted by the analysts, the net profits of the company during the same quarter of last year dipped from $ 5.2 billion to $ 4.5 billion.

Now Microsoft has reported in quarterly profits, which are beyond their expectations. The company has attributed this boost to their Xbox consoles and internet cloud services that were being offered to different enterprises.

According to financial reports, the revenue of the company has reached over $ 23 billion, which is the best figure for the first quarter of any fiscal year. This boost in the revenue has pushed the shares of the US technology giant by nearly 3.8 % which is now at $ 46.75 in all after-market trades.

According to Satya Nadella, “Microsoft Company is looking towards faster innovation, engaging far more deeply through the industry and they are ensuring that their customers are the focal point of every process as it will help in shaping up the future of the company.

The company has confirmed that the record setting high revenue is because of the huge popularity of their Xbox video game consoles and Surface tablet computers apart from turning business to software offered as services as in the Internet "cloud."


According to Kevin Turner, who is Microsoft’s chief operating officer, the customers are now willingly accepting their latest technologies like Office 365 and Surface Pro 3 to Azure and SQL Server (cloud based) meant for corporate customers.

The net revenue of the Microsoft's customer and device unit increased to 47 % and reached $ 10.96 billion. The company was able to bring in nearly $ 1 billion from the sales of their Surface Pro 3 tablet computer.

The sale of Xbox consoles increased and was nearly doubled their value at $ 2.4 million in the quarter, which basically observed the new versions of the Xbox consoles being sold out in more than 28 new markets. According to Microsoft, there was a 10 % increase in the revenue from the commercial offerings of the company like that of Office 365. 128% growth was seen in Azure according to the company.

Nadella during their press brief held in San Francisco gave details about the latest changes and modifications in the strategies of Microsoft, which will enable them to attract more companies and businesses.

They are aiming to do so with their ability to hit the power of colossal online data centers whenever required. At this event Nadella was seen boasting about the fact that the company’s cloud is currently the most completed cloud services offered, which can empower every organization, every company across various industries and different locations and geography.

Microsoft was focused on highlighting the main fact that they have been using their power in the software’s which are used by companies to basically benefit from a trend which is moving towards renting of the computer power, their storage as well as software as services that is hosted at data centers with the cloud internet.