Microsoft’s gross margins for its commercial cloud business (including Azure and Office 365) grew to 67 percent, driving the company’s robust fiscal Q2 earnings on record sales. Microsoft chief executive Satya Nadella revealed that revenue from this sector grew 39 percent to $12.5 billion. Company executives told analysts that the gross margins percentage will increase this year while margins rose for the fourth consecutive quarter, noting that this reflects the “huge opportunity” selling cloud products and infrastructure. Continue reading Microsoft Commercial Cloud Business Drives Record Sales

Microsoft enjoyed a strong fiscal Q3, ending March 31, with revenue rising 14 percent from a year earlier to $30.57 billion, due largely to a 41 percent growth in cloud computing (now almost one-third of its sales) and a 9 percent uptick in sales of its Windows operating system to PC makers. A 5 percent decline of Windows sales in the previous quarter was due to a dearth of Intel computer chips, depressing PC sales. Chief financial officer Amy Hood said Microsoft also saw “unexpected good performance” in Japan. Continue reading Microsoft’s Fiscal Q3 Boosted by Growth in Cloud Computing

Qualcomm stated that a Federal Trade Commission (FTC) case arguing it suppressed competition in smartphone chips and charged excessive licensing fees could risk U.S. national security. The company is joined by officials from the Defense and Energy Departments who, said sources, have urged FTC commissioners to settle the lawsuit. Those opposing the case contend that Qualcomm’s financial losses from its passage will limit its ability to compete with China’s Huawei Technologies in developing 5G networks and equipment. Continue reading Rivals Qualcomm, Apple Cite National Security in 5G Cases

Microsoft’s booming Azure business is now Amazon’s chief rival in the cloud. Since the company began reporting its metrics in October 2015, its growth has never dipped below 90 percent. In Microsoft’s latest fiscal Q3, it grew 93 percent, and in the preceding quarter it grew 98 percent. The company’s commercial version of its Office 365 productivity service also grew 42 percent this latest quarter. Amazon began renting cloud-based computing and storage 10 years ago. Meanwhile, Intel also reported quarterly profit increases, including a 45 percent jump in sales of data-center gear to cloud providers. Continue reading Microsoft and Intel Profits Buoyed by Growth in Cloud Services

In fiscal Q2, Microsoft posted gains for its Intelligent Cloud segment, which includes Azure, showing an uptick of 8 percent — or 10 percent accounting for currency fluctuations — to $6.9 billion. Azure revenue has increased 93 percent, more than doubling from the same period a year ago. Microsoft is now firmly in second place, behind Amazon, in cloud computing. Microsoft also enjoyed a 5 percent increase in revenue from licensing Windows software to PC manufacturers and another 5 percent uptick from corporate agreements. Continue reading With Gains in Cloud Computing, Microsoft Achieves No. 2 Spot