A number of big tech companies are posting profits in their current quarterly earnings results, boosted by the cloud computing sector.
Last week, IBM confirmed that this might have dug it out of a relative financial shortfall as interest in hardware continues to drop, and now Microsoft says that a core focus on cloud is paying off.
Profits soared 21% to hit $10.7bn as the indication of cloud restructuring over the last few months seems to have been a good bet.
Many companies now shy away from hardware as anything other than a package compliment, with cloud being the big foray into an expanded market.
Revenue is up 14% compared to the previous year, dispelling fears that Microsoft would not be able to match rivals on growth through the cloud and related technologies.
Satya Nadella, the chief executive of Microsoft, said these positive results were because: “the world’s leading companies are choosing our cloud to build their digital capability.”
The cloud services they sell to other businesses and enterprises are now a key asset that has climbed by a third in revenue in the last quarter, and it will be interesting to see if their rivals follow suit when their accounts appear over the coming weeks.
Nadella’s decision to take Microsoft away from purely hardware and more niche software offerings means that it was rewarded with a $1tn valuation recently and harbours ambitions of catching up to the likes of Apple in global valuation stakes.