Microsoft results show impact of tech-driven business resilience

▤ Summary

In the transcript of the earnings call posted on the Seeking Alpha financial blogging site, CFO Amy Hood said Microsoft’s commercial cloud business had increased revenue by 30% to $14.3bn.“Our commercial cloud surpassed $50bn in annual revenue for the first time this year,” she said. She said: “Windows commercial products and cloud services revenue grew 9%, driven by Microsoft 365 and the continued demand for our advanced security solutions. In Surface, revenue grew 28%, with strength across consumer and commercial segments.” Satya Nadella, chief executive officer of Microsoft, said: “The last five months have made it clear that tech intensity is the key to business resilience. We are the only company with an integrated, modern technology stack – powered by cloud and AI and underpinned by security and compliance – to help every organisation transform and reimagine how they meet customer needs.” Asked whether Microsoft was seeing demand for big-deal IT projects given that gross domestic product is set to decline this year because of the Covid-19 pandemic, Nadella said: “The things that at least we have learned, I would say in the last five months, is that digital technology is no longer viewed as just new projects start, but it’s becoming perhaps the most key for business resilience and business continuity.” According to Nadella, using digital technology to enable business resilience has been elevated to the number one priority in many organisations. Those are the things that I think are going to increase.” He said the other part of digital transformation is how organisations readjust to what is going to be an increased e-commerce, contactless reimagined world and reconfigure their supply chains.

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Microsoft

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