Amid the Covid-19 pandemic, Microsoft Corp on Tuesday (January 26) reported that its Azure cloud computing services grew 50 per cent. This has been attributed because of the accelerated switch to cloud-based computing, benefiting Microsoft and rivals such as Amazon.com Inc’s cloud unit and Alphabet Inc’s Google Cloud.
The second quarter saw the business grow after the software maker’s investment on working and learning from home, reports Hindustan Times.
The company’s shares rose 5 per cent in extended trading after gaining about 41 per cent in 2020 as COVID-19 shifted computing to areas where the software maker has bet big.
“This was really driven by continued customer demand, with stronger-than-expected consumption as customers have increased their focus on digital transformation,” Microsoft Chief Financial Officer Amy Hood told Reuters in an interview.
It also saw a surprise recovery and growth in sales on the LinkedIn professional social network and navigated a chip shortage that had threatened to hold back its Xbox business.
In November last year, Microsoft released two new Xbox consoles, but the hardware proved difficult to find due to a global semiconductor shortage contributing to tight stocks. However, Xbox hardware sales were up 86% despite the shortages and, as per analysts, the growth is likely to continue as the older models are also contributing to sales.
“Demand still outpaces supply, and we do expect that to continue,” Hood said. “The team did a nice job of getting consoles, both of this newest generation as well as continuing to sell the older generation, which provides a great value for gamers.”
Microsoft’s overall revenue rose to $43.08 billion in the second quarter ended December 31, from $36.91 billion a year earlier, beating analysts’ estimates of $40.18 billion, according to IBES data from Refinitiv.
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