Microsoft Highlights Cloud Plan in Q2 Earnings Statement
Microsoft has its fingers in many pies. Video games, telecommunications, productivity, operating systems, even hardware — you name it, Microsoft almost certainly has some kind of venture in the market. So when Microsoft highlights its cloud computing roadmap in the same breath it reports record second-quarter revenue of $19.95 billion, Talkin’ Cloud takes notice. The only issue: Microsoft didn’t shed any new light on the company’s master cloud plan.
Investors had mixed reactions when Microsoft delivered better-than-expected quarterly results. Some critics worry about softness in the Windows desktop business. But there were some bright spots: The Microsoft Entertainment & Devices Division enjoyed 55 percent growth, thanks in part to the 8 million Xbox Kinect motion-sensing devices shipped. The company also affirmed growth in the Windows Azure cloud platform developer base, with companies including Pixar Animation Studios signing on.
But more germane to TalkinCloud’s audience is Microsoft Business Division’s 24 percent year-over-year growth, attributed to Office 2010, which outsold the 2007 version by 50 percent. And Microsoft is hoping to translate some of that momentum into cloud growth around the upcoming Office 365 cloud productivity suite.
Said Microsoft Chief Operating Officer Kevin Turner in the earnings statement:
“Business demand for our productivity and infrastructure products and cloud solutions is strong. Office had a huge quarter, exceeding everyone’s expectations, and our roadmap for cloud productivity with Office 365 makes products like SharePoint, Exchange, Lync and Dynamics CRM even more attractive to our customers.”
The issue, however, is Microsoft isn’t really saying anything new. We knew that Microsoft was “All In” with the cloud, and it’s no surprise Microsoft has faith in Office 365. On the downside, Microsoft was optimistic during an earnings call but had no solid timeline on when its cloud services would become profitable, eWeek.com reported. And now, with its cloud leadership abandoning ship, TalkinCloud has to ask: Microsoft has pockets deep enough to talk the talk, but can it really walk the walk?