SMB Nation Blog

SMB Nation has been serving the Bainbridge Island area since 2001, providing IT Support such as technical helpdesk support, computer support, and consulting to small and medium-sized businesses.

Microsoft’s cloud-computing efforts are paying off as it gains on Amazon

Microsoft

 

Microsoft Chief Executive Satya Nadella says, “the enterprise cloud opportunity is massive.”

By: Therese Poletti

Microsoft Corp.’s fiscal second quarter showed that its cloud-computing efforts are paying off with major revenue growth and improved profit margins, offsetting declines in its PC businesses.


Investors cheered Microsoft’s MSFT, -0.23%  results in after-hours trading, with shares rising 3.4%, while shares of Seattle neighbor Amazon.com Inc. AMZN, +0.31%   plunged amid disappointment with holiday season profits . The two companies are proving to be fierce rivals in the arena of public cloud, where Microsoft is gaining momentum with its Azure product line, which saw a 140% year-over-year jump in revenue in constant currency.

microsoft gaining on amazon in cloud 2016 01 28

The software giant did not break out revenue of Azure in particular, only giving the growth rate. Azure is partnered with other cloud-focused products in Microsoft’s “intelligent cloud” business, which reported $6.3 billion in total revenue, up 11% in constant currency.


“The enterprise cloud opportunity is massive, larger than any market we have ever participated in,” Microsoft Chief Executive Satya Nadella told analysts.

Amazon and its fast-growing Amazon Web Services business is a formidable opponent in cloud computing, though. AWS reported $2.4 billion in sales for AWS on Thursday, with $687 million in operating income, for a revenue growth rate just shy of 70% — about half of Azure’s reported rise, though Amazon’s number did not use constant currency.

While Azure is growing faster than AWS, it is likely still far behind in terms of overall size. Ahead of Microsoft’s earnings, Raymond James analyst Michael Turits estimated that Microsoft’s Azure business would hit $501 million in revenue in the December quarter.

“It looks like they are slowly but surely gaining share, that’s the key,” FBR Capital Markets analyst Daniel Ives said.

Microsoft also fared well with its Office 365 cloud product, a major part of the “intelligent cloud” sector, which saw revenue growth of nearly 70% in constant currency.

 

Read More

 

Continue reading
1144 Hits
0 Comments

Smartphone News: Blackberry beats the street while Amazon enters the market

blackberry-logo1The Smartphone space got news from an old player and a new player this week with the industry’s creator announcing that it isn’t dead quite yet, while a brand new player entered the market.

BlackBerry reported a small profit for the fiscal period ending on May 31. The $23 million worth of black ink the waterloo, ON-based company announced both beat the street’s expectations and turned around losses of $423 million in the preceding quarter and $84 million in the same quarter last year.

Revenue came in at $966 million, down from $976 million in the prior quarter ahead of analysts' expectations of $963 million. Ultimately this meant a loss of 11 cents a share after adjustments – also ahead of analyst projections of a loss of 26 cents a share.

“Our performance in fiscal Q1 demonstrates that we are firmly on track to achieve important milestones, including our financial objectives and delivering a strong product portfolio,” said Executive Chairman and CEO John Chen, who took over the reins of the embattled mobility vendor in November, in a statement. “Over the past six months, we have focused on improving efficiency in all aspects of our operations to drive cost reductions and margin improvement. Looking forward, we are focusing on our growth plan to enable our return to profitability.”

BlackBerry also announced what appears to be one of the steps in that plan: a deal with Amazon that will make BlackBerry apps available through the Amazon Appstore. Through the deal, which will become relevant with the release of BlackBerry 10.3 in the fall, BlackBerry hopes to dramatically revitalize BlackBerry World, the vendor’s moribund app store. This certainly wouldn’t be a bad thing, however some observers may question what appears to be a primarily consumer play from a vendor that might be better served focussing on the Enterprise space.

BlackBerry also hopes to foster the development of BlackBerry 10 apps and said it will unveil an enterprise application partner program for corporate developers, ISVs and systems integrators over the coming months.

Amazon had news of its own with the introduction of its first smartphone.

The Amazon Fire features a new 3-D dynamic perspective technology, four front facing cameras and Firefly – an app that will recognize objects including artwork and music and then streamline the shopping experience through Amazon’s retail portal.

Amazon-logo-2The new device, which is available for pre-order online from Amazon and AT&T and through brick and mortar retail shops, has a 4.7-inch HD display and runs the proprietary Fire operating system on a quad-core Qualcomm Snapdragon 2.2GHz processor and 2 GB of RAM. AT&T will be the exclusive distributor of the device, making it available to AT&T Partner Exchange members, but limiting its overall market reach (as does the proprietary OS). Pricing for the new device, which will ship July 25th, comes in at $199 for the 32-GB model and $299 for the 64-GB model, with an AT&T contract.

Continue reading
1455 Hits
0 Comments

IDC: Tablet Shipments Soar to Record Levels During Holiday Quarter

Tablets are taking over the IT world it seems, both on the consumer and B2B sides, and IDC has the data to prove it. According to the research firm, worldwide tablet shipments outpaced predictions reaching a record total of 52.5 million units worldwide in the fourth quarter of 2012 (4Q12), according to preliminary data from the firm’s Worldwide Quarterly Tablet Tracker.

Continue reading
2276 Hits
0 Comments