BBC : Microsoft’s focus on cloud computing has helped it deliver better-than-expected quarterly profits, sending its shares to an all-time high.
The software giant posted a $4.7bn (£3.8bn) profit for the three months to September.
Chief executive Satya Nadella has focused on building Microsoft’s expertise in cloud-based services amid slowing PC sales.
Shares rose 6% to $60.73 in after-hours trading.
The previous high was $59.97 in December 1999, close to the peak of the dot-com boom, shortly before Steve Ballmer replaced Bill Gates as chief executive.
When Mr Nadella succeeded Mr Ballmer in 2014, Microsoft’s shares were trading below $37.
Changing environment
Investor confidence in Microsoft has been restored by focusing on mobile and cloud computing rather than its traditional hardware like its Windows operating system and its Office software.
Individuals and businesses are increasingly accessing computing services such as servers, databases, software and storage that are provided over the internet (“the cloud”).
And Mr Nadella said the changing business environment meant this was paying off.
“It’s not just the Silicon Valley startups anymore; it is the core enterprise that is also becoming a digital company. And we are well-positioned to serve them,” Mr Nadella said.
Microsoft’s Office 365 revenue grew by 8% in the quarter, while the Surface tablet’s revenue increased by 38%. Despite a decline in Xbox revenue, the number of online players rose from 39 million to 47 million compared to the previous year.
Microsoft shares soared to a new high as the company’s strong focus on the cloud computing market continues to yield significant results. The company’s strategic emphasis on cloud services, including their highly successful Office 365 platform, has propelled their revenue and market value to new heights. This success is a testament to Microsoft’s ability to adapt to evolving technology trends and capitalize on the growing demand for cloud-based solutions. The market’s positive response to Microsoft’s cloud strategy further reinforces the company’s position as a leader in the technology industry.
