back to article What just counted $24bn in receipts, and rhymes with psycho loft?

Microsoft is crediting its Azure and Office cloud operations with helping to drive a better-than-expected start to its fiscal year. The Redmond giant highlighted on Thursday the growth of its cloud services, both enterprise and consumer, as it topped $24bn in the first quarter of its fiscal 2018. For the three-month period, …

Norfoster

http://alphastreet.com/b87f9975 When Sathya Nathella became CEO, MSFT was trading at $36... Now think of tomorrow's opening price...

DougS
Silver badge

Your point? Exceeding the performance of a CEO as terrible as Ballmer is not a high bar.

Anonymous Coward
Anonymous Coward

MS & Wall St

It is well known that Microsoft is the darling of Wall St. Google because everyone uses them (come on now own up, who uses Bing out of preference???) is a distant second.

Next week, we get Apple's results. They seem to be the stock that Wall St loves to mark down.

Stand by for a particularly pithy headling about their impending demise here. Give the pithyness of the MS, Google etc profits related articles, it should be a humdinger.

The delays to the iPhone X will give many copy writers a lot of ammo to fuel their venting of dislike of everything to do with Apple.

Should be an intersesting week.

Anonymous Coward
Anonymous Coward

Re: MS & Wall St

I typically refrain from either of those whenever possible.

It goes something like this: DDG, findx, bing, google

Bing before Google because I belive Microsoft is the less competent stalker of the two.

Anonymous Coward
Anonymous Coward

Re: MS & Wall St

DDG uses bing.

TheVogon
Silver badge

Re: MS & Wall St

"(come on now own up, who uses Bing out of preference???)"

Me. Bing gives more relevant results, far fewer adverts pretending to be results and less SEO bullshit. I usually use it via DuckDuckGo.

Anonymous Coward
Anonymous Coward

From the link in the article:

"This quarter we exceeded $20 billion in commercial cloud ARR, outpacing the goal we set just over two years ago,” said Satya Nadella"

So the gap versus Amazon AWS ($18 billion ARR) is increasing rapidly since Microsoft passed them last quarter.

Anonymous Coward
Anonymous Coward

But Google total sales ($27bn) just went past Microsoft's ($24bn) in the quarter...

...despite Google (founded 1998) being 23 years younger than Microsoft (founded 1975).

And arguably, all of Google's revenues are Cloud related whereas Microsoft still has a large amount of old school software included in its revenue figures.

And $1bn of that $24bn was LinkedIn, so the Microsoft growth figure, if you exclude the "acquired" growth of linkedin, is 7% rather than their stated 12%.

Of course, Microsoft could do similar deal ($26bn) every year to maintain the 12% growth figure but this article suggests it might not be a good idea:

http://fortune.com/2016/06/13/microsoft-linkedin-overpaid/

TheVogon
Silver badge

Re: But Google total sales ($27bn) just went past Microsoft's ($24bn) in the quarter...

"And arguably, all of Google's revenues are Cloud"

Good luck with that argument. The vast majority of Googles revenue is from advertising. They are so far behind Amazon and Azure in cloud computing they need binoculars to see them.....

Mark 110
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Looks like . .

. . . noones listening to the anti Microsoft crowd in this comments section . . . (and yeah I know - thats just asking to be downvoted to oblivion - don't care!! Off to Barcelona around about beer o'clock)

This post has been deleted by its author

Avatar of They
Meh

Re: Looks like . .

Nah, just means people who are idiots don't read the comments sections. Which is fine because all the idiots can have their stuff taken, lives invaded or just letting them be given really poor software and services on hardware that is massively over priced but doesn't deliver on the hype. (That is just summarising the last few months of articles based on MS performance.)

Meanwhile 24 Billion and they have had 2 price rises in a year (13 and 10% - 22% if you include cloud) At what point can the words 'rip off', 'milking it' or 'taking the piss' be used?

When can we expect the bubble to burst as people realise now they are trapped with MS and Azure or office 265 but they can't afford a 10% year on year price rise. (or 22%)

Anonymous Coward
Anonymous Coward

Re: Looks like . .

"When can we expect the bubble to burst as people realise now they are trapped with MS and Azure"

That's the thing though. You are not trapped in Azure - with MS there is always an on premises option. With Amazon - not so much.

Anonymous Coward
Anonymous Coward

All of this means 2 things....

1) The new Microsoft CEO is doing just what he was hired to do - make shareholders money. He was not hired to make you a Windows Phone, or make Windows 10 awesome, or make it easy to code apps for Windows. He was hired to make shareholders money. Period.

2) The overwhelming revenues from cloud products ($24.5bn) vs those from Windows, Bing, and Xbox (only $9.38bn) means that you definitely WON'T be getting a Windows Phone, an easy to use coding suite, tons of XBox titles or a Bing that's worth a shit. YOU don't mean a damned thing to Microsoft, and these revenue revelations will simply push Microsoft more and more away from the desktop and into the cloud where they charge more money and have to support less and spend less.

This is the beginning of the end for Microsoft Windows as an end user desktop. It will live on as a window to Azure and because governments, the military and big business are comfortable with it.

The moment they turn from it, it will die.

YOU are not Microsoft's target audience. YOU are not what Microsoft thinks about every day. You are expendable, and now you will be ignored.

rmullen0

Re: All of this means 2 things....

Well said AC. Just say no to the cloud in general. Soon they will be charging you by the bit. All it is is about making multinational global corporations more $$$$$$. Corporations that do things like hide their money offshore and then expect tax breaks while taxes go up for working people.

LDS
Silver badge

Re: All of this means 2 things....

$24bn are the *total* revenues - not the cloudy ones.

"Office, Skype, Exchange, SharePoint" - how many are om-premises licenses, and how many cloudy ones? A subscription is not cloud - if the software is installed and used locally.

Those software, plus Windows, are still more are almost three times (17.5bn 6.9bn) than those from Azure plus Windows Server and SQL Server (which you wonder why are not together Exchange and SharePoint). Why LinkedIn and Bing are not in the same group?

It looks those groups have been created to put in the balance sheets the wanted numbers to tell "the strategy is working".

TRT
Silver badge

Re: All of this means 2 things....

It's all hybrid now though, isn't it? 365 in the cloud and 5 local install licenses.

Avatar of They
Meh

Re: All of this means 2 things....

No, depends on your licence. E1 has outlook online only if I read it right (bear in mind MS never have a clear licence, so I might be wrong) Its all confusing for a reason.

Then again they did announce they are bringing back local installs and offline mode. So in two years who knows (or cares) what they will do?

TRT
Silver badge

Re: All of this means 2 things....

I was more meaning that you can't clearly dissect cloud operations from installed seats quite as clearly as once you could. It is our company case that we get cloud plus 5, I understand other licences vary.

John Smith 19
Gold badge
Unhappy

Microsoft. The worlds biggest sofware not-monopoly.

For if a monopoly is successful, none dare call it a monopoly.

And the new motto of Office (more or less) 365

"All your data belong to us."

TRT
Silver badge

What was their profit, though?

I mean revenue is one thing...

Anonymous Coward
Anonymous Coward

Re: What was their profit, though?

The profit is still the same as is stated in the article...

TRT
Silver badge

Re: What was their profit, though?

Nope... did a search for the word "profit". Not mentioned in the article, and it's only the one page long...

Net income is mentioned, but I was asking about operating profit. The article states net income as being up by 16% on like quarters, not "still the same".

We want to know, are they paying their fair dues in taxes??!!

Anonymous Coward
Anonymous Coward

Re: What was their profit, though?

"Net income is mentioned, but I was asking about operating profit."

You asked about profit which is net income.

TRT
Silver badge

Re: What was their profit, though?

I think the general reader in the UK would understand the term profit as operating profit, i.e. gross income. However the term is generally best avoided in financial reporting because it has no universally understood meaning. As for why the general understanding of the term would be gross income, it's because you would say a company is taxed on profit, not revenue. This is shorthand for a more technically correct but also more cumbersome phrase.

Anonymous Coward
Anonymous Coward

Re: What was their profit, though?

"I think the general reader in the UK would understand the term profit as operating profit, i.e. gross income."

I think you will find that the vast majority of any population would be more likely to refer to profit as net income. i.e. after tax.

John Smith 19
Gold badge
Unhappy

3 down votes

Looks like the MS shills are working extra hard this week.

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