back to article Microsoft's cloud keeps printing cash, Surface not so much as Windows giant pockets $119m profit a day

Microsoft on Wednesday reported $33.1bn in revenue for its fiscal 2020 Q1, representing a 14 per cent increase over the same period last year, and profits of $10.7bn, up 21 per cent. Its results, led by the company's Azure cloud service, were slightly better than analysts had expected: the average estimate came to $32.23bn, …

  1. Cavehomme_

    No win Win

    Meanwhile back at ground level we have to suffer the lack of quality and testing of no-win 10. It’s not as if they can’t afford to do a better job.

    1. Anonymous Coward
      Anonymous Coward

      Re: No win Win

      They don't care about windows anymore. Its a means to an end, getting people to use azure and services. Once they are able to get rid of windows for something that does the same and doesn't cost them money (opensource) they will.

      Windows as a platform to Nadella is dead, Azure is his baby and where his focus is. Windows is just a money sink.

      If they are not able to replace windows with something free to them, it will become subscription only, to keep the money flowing for it (and the replacement will probably also).

      1. Tilda Rice

        Re: No win Win

        What a couple of cynics.

        Imagine the gargantuan tasks of keeping existing apps working, moving your dev tooling and OS architecture on over time? (I'm guessing you aren't coders)

        How about the extensive work on Windows Core? One Core.

        MS are terrible at support, hateful at licensing - but you do (I do) get the impression Windows is part of their DNA and they spend time and effort on modernising (watch Channel 9 for their daily standup meetings on Windows and how long builds take etc)

        Anyway, don't let me get int he way of the myopic hate. I feel a bit sorry for the people toiling away inside MS trying to make something beautiful only to get Internet derision from the unworthy

        1. Dave K

          Re: No win Win

          I've got nothing against the developers at MS, its the managers who sought to cut costs by firing their QA people that I have the problem with, plus the designers who have managed to come up with about 4 different UI paradigms in the past few years - all of which are mashed together in an incoherent manner in Windows.

        2. Anonymous Coward
          Anonymous Coward

          Re: No win Win

          Was a developer, also have a BSc in CSAI, but now have been primarily a windows admin for 17 years.

          Microsoft have moved their focus to Azure and Azure services. Cross platform development, as they now know that server side for future services is on linux, as the cost of windows and the advantages that windows provided in terms of management is gone in the 'cloud' (micro-services) era, which Nadella is all in on.

          I don't imagine any gargantuan task in keeping exists apps working, why would they, they are a 'cloud' provider, dropping windows in the mid term and compatibility means doing nothing. When they have enough companies migrated to the 'cloud' and their on premise solutions are so bare bones and require azure services to function anyway that most just don't have it. Along with office 365 being available with full functionality in the browser (with partial offline support) that there is no need for a native binary they have nothing to keep developing windows.

          They have VS which they need to migrate, which they have started by creating VS code. They will keep expanding on that, they bring out a almost complete version with the remaining functionality done via Azure.

          For Azure services that they have that still use windows, can still run on the core version that they use, but will require far less development as it will have a far narrowed scope.

  2. deive

    When you report about all the money these big corps are making, perhaps you could mention just how much tax they are paying too?

    1. Pascal Monett Silver badge

      No need : it's zero.

    2. el kabong

      Excellent idea, taxpayers are getting ripped off and I'd like to know how much

      A few of those companies are effectively being subsidized by taxpayers, I'd be glad to know who they are and the amounts they are getting.

      Your request is good, I fully subscribe.

    3. BeachBoy

      According to Forbes the Microsoft tax bill for 2017 was $3.3 Billion

  3. Pascal Monett Silver badge

    "Every Fortune 500 company today is on a cloud migration journey"

    And when that migration is finished, every Fortune 500 company will get hit in the balls every time Azure has a hiccup.

    Ain't the future wonderful ?

    1. P. Lee

      Re: "Every Fortune 500 company today is on a cloud migration journey"

      Microsoft: "Server software so bad, only they want to run it."

  4. Anonymous Coward
    Anonymous Coward

    Im going to call it. Amazon Won the Cloud Wars

    To state upfront, I couldn't care one way or the other, who's bigger, better, faster, Amazon or Microsoft. But when you look at the numbers, Amazon has consistently held market share while Azure growth numbers ramped up, and then started to shrink. Azure growth is now slowing faster than Amazon, and Amazon still have around 50% Market share according to Gartner, IDC etc.

    1. Steve_Jobs1974

      Re: Im going to call it. Amazon Won the Cloud Wars

      As Warren Buffet said - You do not want to give Jeff Bezos a seven-year head start

  5. Anonymous Coward
    Anonymous Coward

    Azure numbers are slowing quickly, however, O365 is holding fast. O365 is Cloud as well as Azure. People always seem to decide to put Azure in a bucket of its own and toally forget about O365.

    1. Anonymous Coward
      Anonymous Coward

      The reason people are suspicious of O365 numbers is that they included both SaaS and traditional licencing in one convenient package.

      Make no mistake, that's not a bad thing for Microsoft because they aren't losing customers to cloud and are slowly forcing customers to migrate.

      But the need to include O365 on MS cloud revenue does say something about the state of the cloud market if three of the big 5 all play this trick and the only other player that doesn't uses AWS for hosting a significant amount of its infrastructure.

      TL;DR: MS use O365 in cloud revenue to mask the fact AWS won the cloud race by a significant margin. Proof in a few more years when O365 and Azure are stagnant or decreasing.

  6. This is my handle

    Mr. Nadella more likely said...

    ... "Every Fortune 500 company today is on a cloud migration journey and we're [rather than 'were'] making it faster and easier,".

    That is all.

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