Marketing analysts forecast a murky future for Microsoft if their PC sales continues to go down. Microsoft’s net income goes down from $4.99 billion USD to $3.76 billion USD during the 3rd quarter last year.
The firm’s total shares goes down to more than 4%.
Despite the fact that operating profits shrank about 14%, investments in the cloud business — including Azure — rose up to 3.3% amounting to $6.1 billion USD. They would have expected about 7% to 9% growth. The figures show that Microsoft slowly becomes a cloud company.
Expectations of analysts for Microsoft’s revenues did not hit the $22.09 billion USD mark, for the revenue fell from $21.73 billion USD to $20.53 billion USD.
The reasons behind the decrease of one-time license products is the lesser demand for personal computers. Growth in Microsoft might be so slim for the moment, but some analysts opt to wait for a miracle.
Continued investment in the cloud business might change the results for the next quarter. Economists like Matt Mcllwain, a venture capitalist at Madrona Venture Group, keeps a cloase eye at Microsoft’s business affairs.
Microsoft prioritizes the shift to cloud technology. They need to be attuned with the customer’s agenda. Large establishment companies begin to invest in cloud because it is faster, efficient, and cheaper way to transfer and store data during their transactions.
Microsoft’s CEO, Satya Nadella, focused on developing the firm’s first cloud technology when he took over last 2014. His strategy is to go mobile, thus, prioritizing cloud.
Lower demand for the computer market also hurt Intel, forcing the renowned chipmaker to cut 12,000 jobs. Facing the same woes, Intel agrees with Microsoft to highlight the development of cloud technology which is anticipated for the future market.
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