Microsoft capitalization exceeded $ 1 trillion thanks to cloud computing
- ConsenSys and AMD develop blockchain-based cloud computing infrastructure
- Google Drive, Apple iCloud and Dropbox: Which is the best cloud storage?
- Benefits of ERP technology in cloud computing
- 5 reasons why enterprises should use cloud computing
- The combination of cloud computing and virtual private network
- Microsoft arrangements to utilize ARM chips for cloud computing
- Cloud computing - A simple explanation
- Adobe earns big on 'the cloud'
- New Window Server: Breakthrough on cloud security (Part 2)
- New Window Server: Breakthrough on cloud security (Part 1)
Microsoft's market capitalization has surpassed the $ 1 trillion mark in the extended - hours trading on Wednesday, after the world's largest software maker forecasts optimism about its cloud computing business.
December last year, Microsoft surpassed Apple, becoming the world's largest capitalized company. Back then, the company officially returned to the top after less than 5 years under the leadership of Indian CEO Satya Nadella.
Since new CEO Satya Nadella took over Microsoft, the company has prioritized development of other areas such as cloud computing, open source software, and cross-platform services, in parallel with reducing focus on the Windows operating system. This strategy has yielded impressive results.
February 2014, Microsoft introduced SatyaNadella (left) as the company's new CEO with the support of both two former CEOs Bill Gates (middle) and Steve Ballmer (right).
According to Reuters, the revenue and profit of the first quarter that Microsoft has just announced exceeded previous estimates of analysts, thanks to unexpected revenue increase of Windows operating system and impressive growth maintained in cloud computing - the sector that has gained tens of billions of dollars in revenue for Microsoft each year.
Microsoft's share price in the extended - hours trading has increased 4.4%, reaching $ 130.54 per share, bringing the company's market capitalization to over $ 1 trillion. Meanwhile, Apple currently has a market capitalization of $ 980 billion, ranking right behind Microsoft.
In recent months, three tech giants Microsoft, Apple and Amazon are in a close race for the position of the world's largest capitalized public company. And at this moment, Microsoft is temporarily the leader.
From the beginning of the year, Microsoft stock has increased 23%. Over the past five years, Microsoft has had a spectacular shift to reduce its reliance on the once main product - Windows, and promote cloud-based services instead. Azure, Microsoft's main cloud product, is still competing strongly with market leader Amazon Web Services (AWS) to provide cloud platforms for businesses.
In the first quarter of 2019, Azure's revenue growth reached 73%, a little lower compared to 76% achieved in the fourth quarter last year, but it was still a very positive number. Analysts predict that Azure will bring Microsoft $ 13.5 billion in revenue in fiscal year 2019, with annual growth of 75%.
Revenue from Windows increased 9% over the same period in 2018, exceeding the forecast. It is another positive sign compared to the 5% decrease in the fourth quarter last year.
However, Microsoft's report has two disappointing points for investors. Firstly, its gaming revenues, including gaming console Xbox, only increased 5%, lower than 8% increase of the previous quarter. And secondly, revenue from Surface devices increased 21%, much lower compared to 39% increase in the last quarter of 2018.
Microsoft's total revenue for the quarter rose 14% to $ 30.57 billion, surpassing the forecast of $ 29.84 billion previously released by analysts. Its net profit reached $ 8.81 billion, up 18.7% over the same period last year.
By: James Paquin