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Cloud Gives Microsoft Wind in its Sails

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Over the years, Microsoft is increasingly becoming a cloud provider. As a result, the company is increasingly earning more from cloud services, while many of its other products yield less.

 

Microsoft earned much more from its cloud services in the fourth quarter of its broken fiscal year than a year earlier. Both the subscription services such as Office365 and the rental of server space yielded significantly more. The sale of licenses for the Windows operating system, on the other hand, was less successful, as did the sale of Surface tablets and computers.

With the rental of cloud space and associated services under the name Azure, Microsoft raised half more than in the closing quarter of its 2019/2020 fiscal year. The turnover of business subscriptions to services such as Office365 also increased sharply, by a third. In addition, Microsoft Teams, the tech giant’s collaboration platform that many companies have adopted over the past year, now has nearly 250 million monthly active users.

Some other branches are doing less well. Computer sales declined from April to June compared to a year earlier due to chip shortages and the fact that many computers were sold in the same period last year. That was because many people suddenly had to work from home. Microsoft noticed this due to a decline in the sale of Windows licenses to computer manufacturers. Its own computer line, Surface, also sold less than a year earlier, by about twenty percent. Xbox service revenues were down 4 percent.

But like the other big tech companies that are releasing their numbers today, Microsoft has made huge profits over the past year. All in all, the tech company’s revenue rose more than a fifth to $46.2 billion. In addition, earnings were almost half higher at $16.5 billion. For the full fiscal year 2020/2021, Microsoft posted revenue of $168.1 billion and a profit of $61.3 billion.

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