back to article Microsoft Azure doubles up to $800m a quarter – and is wiped out by dying phone sales

All eyes were on Microsoft's cloud business today as it published its fourth-quarter and full-year financial results. Amid the numbers, Redmond boasted that its Azure revenues from the quarter were up 102 per cent year-on-year – we estimate the cloud service's revenue to be about $800m in total for the period. Meanwhile, …

  1. Steve Davies 3 Silver badge

    The writing should be on the wall

    for their Phone business. That drop in revenue would have sent any other companies share price tumbling yet the MS price rose. But just the size of the revenue drop would make any other business pull the plug but will MS do that? I doubt it and it will continue to be the anchor that is holding them back for sometime to come. Shame really as we need three strong players in the mobile business.

    I guess the 'love in' that MS has with Wall St is carrying on as normal.

    We shall have to see what happens to APPL stock when they release their next set of figures. (My guess is that the stock will tank by at least 10% but that is just my feeling)

    1. Jon B

      Re: The writing should be on the wall

      The have all but pulled the plug already

      1. Timmy B

        Re: The writing should be on the wall

        "The have all but pulled the plug already"

        I upvoted that but it's a sad thing. I don't want to see a market where there is just Android and Apple. Liked my Windows phone but just can't feel I can stick with a dying platform.

        1. gv
          Joke

          Re: The writing should be on the wall

          "Liked my Windows phone but just can't feel I can stick with a dying platform."

          I think the term was "burning platform."

        2. Zane

          Re: The writing should be on the wall

          Well whatever you wish for - there never was more than Android and Apple in the smartphone market, and the Winphone never had a chance to change the game.

          Mobile market experts have been saying this from the very beginning.

          1. Goldmember

            Re: The writing should be on the wall

            "and the Winphone never had a chance to change the game."

            WinPhone actually had a decent chance to change the game. At one time market share in Europe grew to 11% or so. But MS botched the Nokia acqusition and botched OS releases/ upgrades, sadly. It created confusion and frustration, which pushed away devs and customers in droves.

            I'd like to see it make a comeback as it's actually a pretty good platform, but it's looking less and less likely now.

    2. TheVogon

      Re: The writing should be on the wall

      "That drop in revenue would have sent any other companies share price tumbling"

      They never made any profit to speak of on Mobile though, so it's of little consequence.

    3. Bob Vistakin
      Facepalm

      Nokia 2.0

      These numbers are peanuts compared to the $26bn they are about to buy Linked In with, trash, then give away in a firesale in a few years time.

  2. Charlie Clark Silver badge

    Redmond is popular with the retail sector – which won’t touch AWS because Amazon is a competitor

    Sounds like bullshit. For the retail sector, as for any sector, AWS is just another service provider. Azure is perhaps simply better at migrating existing stacks to run on MS hardware, whereas AWS requires redesign.

  3. Pascal Monett Silver badge

    "This fiscal year we invested in innovation"

    As opposed to last year, where you just wasted money on Windows Phone that you have now all but killed ?

    "Invested in innovation" : the new CxO-speak for wrapping useless words around non-existent information.

    Brilliant waste of breath.

  4. cambsukguy

    If they keep making a few Enterprise phones

    Running WP10, but maintaining a superb camera, then it is still a very nice system.

    The 950 available now (£300, damn cheap, with a Continuum adaptor) will keep the diehards like me, who don't need an app for everything, happy.

    Web pages often do the job, Amazon are dropping their WP app for instance.

    UWP would allow them to wrap their web pages in an app, along with automatic login etc. so that it presents more like a full app.

    The cons: The TripAdvisor WP8.1 app is beautifully presented, the web wrapper, not so much.

    The pros: The web wrapper app has all the web page functionality and matches the web page operation, for easier use.

    It will be interesting to see if many more UWP apps appear and thus more for the phone and perhaps some OEMs start making phones again.

    As for a burning platform, also not so much. WP10 gets updates along with Win10 and the anniversary edition will come to the phone at roughly the same time.

    There is a lot of benefit to having the same codebase, despite some obvious UI issues. Since the phone-only platform, updated through MNOs etc., was less than successful, it is a moot point as to whether one prefers WP10 or not.

    The UWP Maps app is a perfect case in point, it now allows multiple, simultaneous search tabs on a map, even on the mobile version, incredibly useful and only present because the App written for the PC added the feature. As of now, using HERE map data, the WP10 Maps is superior to the preceding HERE maps/navigation system, Cortana integration, search tabs, live Traffic Camera snapshots, multiple routes, auto-rerouting, manual rerouting, still has 3D buildings, rotation, angle, Cityscape, auto-zoom, all with offline maps stored on the SD card, brilliant and indispensable, especially when abroad.

    And the Office apps have hugely more capability now because they are UWP.

    I do hope a ton of companies do UWP apps, Banking for instance would be a good target, allowing the banks to use the higher security available with UWP to increase safety and being able to have a mobile version with little or no extra development.

    1. Charlie Clark Silver badge

      Re: If they keep making a few Enterprise phones

      Running WP10, but maintaining a superb camera, then it is still a very nice system.

      Two questions:

      Why would this work for Microsoft when it didn't work for BlackBerry?

      Why would enterprises want "superb" cameras in phones?

      I do hope a ton of companies do UWP apps

      Seeing as Microsoft has effectively pulled the plug on Windows Phone, why should companies bother developing UWP for an ever decreasing market? HERE for Windows Phone isn't getting any updates.

      1. werdsmith Silver badge

        Re: If they keep making a few Enterprise phones

        There is a small niche of people that believe that the best possible camera in a phone is an absolute requirement. They suffer false consensus bias, and don't realise that the vast majority of the market just need a good enough camera.

        While that's the case, there is no great business benefit from investing a large chunk of R&D effort at the camera, as Nokia and Microsoft have proved.

      2. Anonymous Coward
        Anonymous Coward

        Re: If they keep making a few Enterprise phones

        Unless you have some insider knowledge MS have only paused on windows phone for now, whether Lumia or Surface emerges afterwards is unknown. Windows mobile on the other hand continues with an anniversary update possibly next month but likely in the next 3 months. Around nine companies HP and Dell included are currently making windows mobile hardware.

        UWP apps aren't just for mobiles, some work well on PC's and if written correctly all personal data is synchronised.

        1. Charlie Clark Silver badge

          Re: If they keep making a few Enterprise phones

          Unless you have some insider knowledge MS have only paused on windows phone for now

          You mean it's only resting? It does have lovely plumage…

      3. flippet

        Re: If they keep making a few Enterprise phones

        HERE for Windows Mobile isn't the app he was describing - the default map app on WinMo 10 is Microsoft's own, it merely licenses the map data from HERE and uses its own front end for everything else including Navigation - and it's updated frequently!

  5. kmac499

    Multiple Platforms a good idea??

    Sorry for being a bit of a heretic; again. (Disclaimer I use Android devices)

    Back in the neolithic i.e 80s~90s there was only one majority platform for computing and that was Windows. With all it's faults annoyances, security holes etc. But it was a good thing because it was the dominant platfom for the computers that most people used both at work and home. Knowledge was widespread so people could easily change jobs, support was easy to find and the 'apps' were readily available.

    What I want from a hand held mobile computer today is a device that is easy to use covers a wide range of price points and speciifcations (screen size, memory, camera quality etc.) and offers the functions I use; phone, calendar, mail, social media with occasional use of navigation, entertainment and other apps. Plus Cloud backup\sync that can easily be used by my other devices Dayjob PC, Tablets etc.

    I don't like Apple; not because of their kit which is perfectly OK if a tad expensive. I dislike the attitude of the company. Years ago I had to use NeXt kit and the St Jobs arrogance infected them as well.

    Free markets are good, anti competition and anti trust laws are good; they stop outright robber barons and leave room for challengers to come through; but for all practical purposes if one mobile OS becomes a defacto standard does it really matter.. ?

  6. imanidiot Silver badge

    So remind me?

    Why did we need the TIFCAM and Win10 abomination that is a "unified OS" for mobile and computing again? Seems like MS is pullout out of the mobile market again.

    1. dajames
      Headmaster

      Re: So remind me?

      Why did we need the TIFCAM and Win10 abomination ...

      Unless you spell "known" with a 'c' that's TIFKAM ... it's an acronym, you know (or possibly didn't, but that really doesn't seem likely).

      1. imanidiot Silver badge

        Re: So remind me?

        Woops, my bad. I did indeed mean TIFKAM. Serves me right for trying to multitask.

  7. Anonymous Coward
    Windows

    Pheonix like...

    MSFT Surface Phone will have 25% market share outside of USA by 2020.

    1. oldcoder

      Re: Pheonix like...

      Not when it keeps loosing market share.

      Is there even a Chinese market for a Windows phone? Even in the EU they are losing 4.2% overall.

      The only place showing any increase was in Japan, a +.2%.

      http://www.winbeta.org/news/windows-phone-market-share-continues-fall-kantar-report

    2. Arctic fox

      Re: Pheonix like...

      Oh dear J.J. It seems as if the anti-Redmond hatebois are so po-faced that they are not capable of recognising when someone is winding them up.

      1. Anonymous Coward
        Anonymous Coward

        Re: Pheonix like...

        Nah just going to downvote you for thinking you are clever. Don't care either way about original poster.

  8. Mikel

    The power myth

    For over a decade MSFT had lateral motion, but the forecast was always "to the moon!" based on their tyrant status. Your money had better returns stuffed in a mattress. It will be interesting to see if they can do that again now that their dominance of technology is broken. I think not.

  9. Gene Cash Silver badge

    Pull the plug...

    Look at how long MSFT put up with the losses from Xbox. They tend to keep throwing good money after bad.

    1. Dadmin
      Linux

      Re: Pull the plug...

      Surely you mean the Xbox One. The original Xbox is a much loved and well designed dedicated gaming PC console for the TV, guy. The Xbox One is an attempt to bring the most hated "features" of Xbox360 to the next generation of unimpressed gamers who must be clamoring for cloud-only gaming that must be connected 24/7 in order to function and bring in untold numbers of updates. Count me out, gents. I will pick up the Xbox One just like I did the Atari 2600... years after it died a gruesome death and the games and consoles could be had for pennies on the dollar. Much respect to the gamers who go out and buy their warz on release day and pay full price though! Good on you, noobs!

      Now the Sony Playstation 4, that looks good, but then it's from that shithouse Sony, the one and only; rootkit pushing, Linux hating, Johnny Jerkoffs. I think the last great product for them would have been PSX, and before that the cassette tape Walkman. Period.

    2. TheVogon

      Re: Pull the plug...

      " Look at how long MSFT put up with the losses from Xbox. "

      Microsoft eventually made billions out of Xbox though - far more than they invested. And with the next Xbox Scorpio version they might well jump ahead of Sony as it is apparently far more powerful than the PS4 Neo.

      1. Hans 1
        Windows

        Re: Pull the plug...

        >And with the next Xbox Scorpio version they might well jump ahead of Sony as it is apparently far more powerful than the PS4 Neo.

        I heard that one before:

        And with the next Xbox version they might well jump ahead of Sony and Nintendo as it is apparently far more powerful than the PS2 or cube.

        And with the next Xbox 360 version they might well jump ahead of Sony as it is apparently far more powerful than the PS3.

        And with the next Xbox One version they might well jump ahead of Sony as it is apparently far more powerful than the PS4.

        At each iteration, "might well jump ahead of" but never did ... and with the PS4, Sony helped them hard by choosing a subscription for online gaming ... the PS3 was wayyy more expensive than the sh1tsbox 360...

  10. Anonymous Coward
    Anonymous Coward

    always look on the bright side of life

    Well one positive in 2016 for Microsoft is this year they will probably make more profit for the entire year than Apple does in any single quarter. Hasn't always been true in the past.

  11. John 104

    STEM

    "The company paid a tax rate of seven per cent on the past quarter's results; worth remembering the next time Microsoft whines about the US not investing enough in STEM education."

    The fuck is that supposed to mean? Somehow it is Microsoft's job to pay enough taxes to get people to take interest in STEM? No amount of money can change peoples attitudes towards hard work. STEM isn't popular in this country because it isn't easy. On the flip side, it pays well for those who have the intelligence and desire to pursue it.

    There is a cultural problem in this country (the US) that is showing more and more people less interested in education and work and more interested in handouts and pissing their lives away playing video games*, watching TV, playing gangsta or doing drugs (or all of these at once). 'Social' media has us 'engaging' with other people without ever having to see their faces. Until there is a shift in what people think is important, and how they relate to each other, STEM will continue to be unpopular in this country, and blaming the government or corporate tax rates is not only naive but childish.

    *

    I like a game as much as the next guy, but I don't while away countless hours playing them. There is more to life than staring at a screen for 6 hours a day. And there is a real world out there that needs attention. It won't go away just because you try to ignore it...

    And accolades to Pokemon Go for getting people outside...

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Other stories you might like