Microsoft’s Cloud Services Boost Second Quarter Earning

High demand for Microsoft’s cloud services has given a significant boost to Microsoft’s second quarter overall revenue results and profits. For the quarter ending December 31, revenue rose to $51.7 billion, a twenty percent increase year-over-year. Overall net profit rose 21 percent to $18.8 billion.

It seems that, like many companies in the digital services spectrum, Microsoft is profiting from the pandemic-boosted work-at-home trend and the transition within organizations to support cloud-based remote working.

Microsoft’s turnover achieved through their ‘Intelligent Cloud’ solutions climbed 26 percent to $18.3 billion in the second quarter. The vendor’s server goods and cloud services revenue increased 29 percent, driven by a 46 percent revenue growth from Microsoft Azure and other cloud services being offered by the company.

“Solid commercial execution, represented by strong bookings growth driven by long-term Azure commitments, increased Microsoft Cloud revenue to $22.1 billion, up 32% year over year,” said Amy Hood, Executive Vice President and CFO at Microsoft.

Dynamics ERP and CRM

Microsoft also saw a considerable increase in demand for its Dynamics ERP and CRM products and cloud services. Sales results for these products and cloud services climbed by 29%, with Dynamics 365 revenue increasing by 45%.

“Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life,” said Satya Nadella, Chairman and Chief Executive Officer (CEO) at Microsoft. “As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose.”