A deal announced this week between Microsoft and Boeing points to a realignment of the vendor-customer relationship: For Microsoft, every enterprise cloud customer is a potential software partner too, CEO Satya Nadella said on his company’s earnings call Tuesday. Office 365 commercial cloud revenue was up 54%, while Microsoft now claims 23.1 million Office 365 consumer subscribers.
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Total revenue for the three months ended June 30 was $20.6 billion, Microsoft said, down from $22.2 billion past year.
More Personal Computing division sales, which include Windows and Xbox, fell 3.7 per cent to $US8.9 billion, slightly better than the $US8.87 billion average analyst estimate.
Revenues from the personal computing segment which includes Windows dropped 6.3 percent to $40.46 billion.
Microsoft has beat analyst expectations with today’s FY 2016 Q4 earning announcement, where Microsoft reported a revenue of $22.6 billion non-GAAP, with a net income of $5.5 billion non-GAAP for Q4 2016.
Microsoft reported Windows OEM non-Pro revenue increased 27 per cent and Windows OEM Pro revenue increased two per cent.
No geographic breakdowns are released by Microsoft of its revenue, but officials said some of the company’s growth in its Azure business was due to the wide footprint geographically Azure has. During the third quarter, it posted a run rate of $9.4 billion.
Microsoft closed out its fiscal year with a 38 percent rise in profit to US$16.8 billion.
The technology company said that the revenue was $22.6 billion in the fiscal fourth-quarter, compared with revenue of $22.18 billion a year earlier. Although Microsoft’s cloud services business looks like a great alternative to the cloud businesses at Amazon, IBM’s or even Alphabet, the company’s main growth opportunity appears to be more and more reliant on this business.
A big part of the reason for that sag in margins has been because Microsoft has been investing heavily in building out the data centers and server facilities that make services like Azure, Office 365, and Bing run smoothly.
Microsoft in June agreed to buy professional networking service LinkedIn Corp. for $26,2bn. The company has a market cap of $419.33 billion at 7.86 billion shares outstanding.
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Microsoft admitted recently that its ambitious target to get Windows 10 running on one billion devices by 2018 is likely to be missed because of the failure of the smartphone business.
