Cloud sales double for Microsoft

Microsoft managed to double commercial cloud sales for the fourth consecutive quarter.

The marginal improvement was thanks to yet another strong quarter of cloud growth and the acquisition of Nokia in 2014, the impact of which is now starting to trickle through into results.

Beating Wall Street will no doubt give chief executive Satya Nadella the breathing space he needs to continue the ongoing transformation of business; but the earnings report wasn’t all peaches and cream.

Quarterly profits dropped by 11.9% to $4.9bn or 61 cents per share. There were sharp falls in Devices and Consumer Licensing and Computing and Gaming Hardware and this, combined with an increase in R&D spending and dealing with the aftermath of the massive job cull, led to the fall in net income.

But the growth in commercial cloud was more than enough to offset any concerns that shareholders might have. Nadella has made clear that his number one priority is turning Microsoft into a cloud-first company in order to compete with the likes of Amazon, Google and IBM.

Read more at: Microscope UK

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