Microsoft Exceeds Sales Forecasts Thanks To The Cloud Business

Quarterly revenue from Microsoft Corporation exceeded analyst estimates thanks to the strength of Azure, its cloud computing platform, which boosted its shares by 2% on Wednesday.
The company’s cloud business revenue, which includes Azure, increased 27% to $ 11.9 billion in the quarter, exceeding the average analyst estimate of $ 11.4 billion.
Microsoft faces’s intense competition for participation in the cloud infrastructure market, at a time when more and more companies are looking to move their computing work to data centers managed by third parties.
Amazon Web Services dominates the market with a 32.6% stake, followed by Azure, with 17%, according to data from the research firm Canalys.
Azure, which had been reporting a slowdown in growth since last year, posted a quarterly growth of 62% in the second fiscal quarter compared to 59% in the first quarter.
Revenue from its personal computing division, the largest sales, increased 2% to $ 13.2 billion, exceeding analysts’ expectations of $ 12.84 billion. The unit includes Windows software, Xbox game consoles, online advertising and Surface computers.
Total revenues from the tech giant increased 13.7% to $ 36,910 million in the quarter ended December 31.
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