{"id":9315,"date":"2016-01-29T13:30:37","date_gmt":"2016-01-29T12:30:37","guid":{"rendered":"http:\/\/www.itwriting.com\/blog\/?p=9315"},"modified":"2016-01-29T13:30:37","modified_gmt":"2016-01-29T12:30:37","slug":"microsofts-story-continues-windows-down-cloud-up-in-financials-oct-dec-2015","status":"publish","type":"post","link":"https:\/\/www.itwriting.com\/blog\/9315-microsofts-story-continues-windows-down-cloud-up-in-financials-oct-dec-2015.html","title":{"rendered":"Microsoft\u2019s story continues: Windows down, cloud up in financials Oct-Dec 2015"},"content":{"rendered":"

Microsoft has reported<\/a> its latest financial results, for the quarter ending December 31st 2015.<\/p>\n

Here are the latest figures (see end of post for what is in the segments):<\/p>\n

Quarter ending  December 31st 2015 vs quarter ending December 31st 2014, $millions<\/em><\/p>\n\n\n\n\n\n\n\n
Segment<\/td>\nRevenue<\/td>\nChange<\/td>\nOperating income<\/td>\nChange<\/td>\n<\/tr>\n
Productivity and Business Processes<\/td>\n6690<\/td>\n-132<\/font><\/span><\/span><\/td>\n6460<\/td>\n-528<\/font><\/span><\/span><\/td>\n<\/tr>\n
Intelligent Cloud<\/td>\n6343<\/td>\n+302<\/font><\/td>\n4977<\/td>\n+272<\/font><\/td>\n<\/tr>\n
More Personal Computing<\/td>\n12660<\/td>\n-622<\/font><\/td>\n3542<\/font><\/td>\n+528<\/font><\/td>\n<\/tr>\n
Corporate and Other<\/td>\n-1897<\/font><\/td>\n-2222<\/font><\/td>\n-1897<\/font><\/span><\/td>\n-1980<\/font><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

A few points to note.<\/p>\n

Revenue is down:<\/strong> Revenue overall was $million 23.8, $million 2.67 down on the same quarter in 2014. This is because cloud revenue has increased by less than personal computing has declined. The segments are rather opaque. We have to look at Microsoft\u2019s comments on its results to get a better picture of how the company\u2019s business is changing.<\/p>\n

Windows<\/strong>: Revenue down 5% \u201cdue primarily to lower phone and Windows revenue and negative impact from foreign currency\u201d.<\/p>\n

Windows 10<\/strong>: Not much said about this specifically, except that search revenue grew 21% overall, and \u201cnearly 30% of search revenue in the month of December was driven by Windows 10 devices.\u201d That enforced Cortana\/Bing search integration is beginning to pay off.<\/p>\n

Surface<\/strong>: Revenue up 29%, but not enough to offset a 49% decline in phone revenue.<\/p>\n

Azure<\/strong>: Azure revenue grew 140%, compute usage doubled year on year, Azure SQL database usage increased by 5 times year on year.<\/p>\n

Office 365<\/strong>: 59% growth in commercial seats. <\/p>\n

Server products<\/strong>: Revenue is up 5% after allowing for currency movements.<\/p>\n

Xbox<\/strong>: Xbox Live revenue is growing (up 30% year on year) but hardware revenue declined, by how much is undisclosed. Microsoft attributes this to \u201clower volumes of Xbox 360\u201d which is lame considering that the shiny Xbox One is also available.<\/p>\n

Further observations<\/h3>\n

This is a continuing story of cloud growth and consumer decline, with Microsoft\u2019s traditional business market somewhere in between. The slow, or not so slow, death of Windows Phone is sad to see; Microsoft\u2019s dismal handling of its Nokia acquisition is among its biggest mis-steps and hugely costly.<\/p>\n

CEO Satya Nadella came from the server side of the business and seems to be shaping the company in that direction, if he had any choice.<\/p>\n

Azure and Office 365 are its big success stories. Nadella said in the earnings call that \u201cthe enterprise cloud opportunity is massive, larger than any market we\u2019ve ever participated in.\u201d<\/p>\n

A reminder of Microsoft\u2019s segments:<\/h3>\n

Productivity and Business Processes<\/strong>: Office, both commercial and consumer, including retail sales, volume licenses, Office 365, Exchange, SharePoint, Skype for Business, Skype consumer, OneDrive, Outlook.com. Microsoft Dynamics including Dynamics CRM, Dynamics ERP, both online and on-premises sales.<\/p>\n

Intelligent Cloud<\/strong>: Server products not mentioned above, including Windows server, SQL Server, Visual Studio, System Center, as well as Microsoft Azure.<\/p>\n

More Personal Computing<\/strong>: What a daft name, more than what? Still, this includes Windows in all its non-server forms, Windows Phone both hardware and licenses, Surface hardware, gaming including Xbox, Xbox Live, and search advertising.<\/p>\n","protected":false},"excerpt":{"rendered":"

Microsoft has reported its latest financial results, for the quarter ending December 31st 2015. Here are the latest figures (see end of post for what is in the segments): Quarter ending  December 31st 2015 vs quarter ending December 31st 2014, $millions Segment Revenue Change Operating income Change Productivity and Business Processes 6690 -132 6460 -528 … Continue reading Microsoft\u2019s story continues: Windows down, cloud up in financials Oct-Dec 2015<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,55,56],"tags":[185,266,586,996],"class_list":["post-9315","post","type-post","status-publish","format-standard","hentry","category-cloud-computing","category-microsoft","category-mobile","tag-azure","tag-cloud","tag-microsoft","tag-windows"],"_links":{"self":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/posts\/9315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/comments?post=9315"}],"version-history":[{"count":0,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/posts\/9315\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/media?parent=9315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/categories?post=9315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itwriting.com\/blog\/wp-json\/wp\/v2\/tags?post=9315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}