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Cloud computing success boosts Microsoft results yet again

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(Image credit: Shutterstock / Blackboard)

Microsoft has announced its financial results for Q2 of the fiscal year 2021, revealing a hugely positive performance by the company’s cloud computing solutions. 

For the three months up to December 31, 2020, Microsoft recorded a 50% growth in revenue for its Azure cloud computing services when compared with the corresponding period of the previous fiscal year.

The COVID-19 pandemic has undoubtedly had a significant impact on Microsoft’s financial results. The ongoing focus on remote working and remote learning in many countries has been a real boon for cloud solution providers – something clearly reflected in the company’s FY21 Q2 results.

“What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” Satya Nadella, Microsoft’s chief executive officer, said. “Building their own digital capability is the new currency driving every organization’s resilience and growth. Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform.”

Unexpected gains

Revenue from Microsoft’s Intelligent Cloud business reached $14.6 billion in the quarter, an increase of 23%, while server products and total cloud services revenue expanded by 26%. Meanwhile, enterprise services revenue increased by 5% and enterprise mobility grew by 29%.

In addition, the company was boosted by an unexpected sales recovery around its employment-oriented social network LinkedIn, which posted revenue growth of 23%. Xbox sales also beat analyst expectations, which had trended downwards after reports of stock shortages. Revenue from Microsoft’s personal computing division, which includes Windows software as well as its Xbox gaming consoles, reached $15.1 billion in the quarter – outperforming estimates of $13.5 billion.

Microsoft shares rose 5% following the announcement of its financial results. Clearly, while many businesses continue to struggle as a result of the coronavirus pandemic, some companies are experiencing sizeable economic benefits.

Via Reuters