Mar, 2021 - By SMI
Microsoft reported 17% growth in sales with increasing demand for its public cloud platform Azure.
The software giant, Microsoft Corporation, benefitted from the global lockdowns as many other tech companies. Stocks of Microsoft surged by 6% on Tuesday, January 26, 2021, after the company announced its earnings in the second quarter of 2020. The company earned around US$ 43 billion in Q2 of 2020, which is about 17% higher from 2019. The growth in the revenue was heavily contributed by its Azure cloud platform, which is on high demand for its hybrid cloud solutions. The growth in revenue of Azure alone stands at 50% higher than 2019. Gaming revenue of the company rose to 51% from 2019 due to strong sales of its new Xbox consoles. Microsoft’s other server-related products such as GitHub, Windows Server, and enterprise services have also witnessed increase in their demands in 2020.
The CEO of Microsoft, Satya Nadella, stated that the business world is undergoing a dawn of second wave of digital transformation, which is accelerated by the ongoing pandemic.
The Work-from-home scheme has forced the tech companies to increase their expenditure on cloud computing. The adoption rate of cloud services by these tech companies have improved as all the companies want to stay ahead in the digital competition. While the COVID-19 pandemic is still around the corner, the demand for Microsoft products is expected to expand as the trend of distant education and WFH are expanding as well.
Wall Street is quite positive regarding the growth in earnings of Microsoft in the first quarter of 2021, by considering the momentum Azure has achieved. The performance of the tech giant created enthusiasm among the investors and is poised to attract more investments in its shares.
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