Microsoft came up with its quarterly earnings report and recorded a high-profit jump, which is a result of its continued shift towards web-based business software.
Per the report, the three-months revenue ending March 31st was eight percent higher from a year earlier with net income being 28 percent higher.
The company has profitably boosted the sale of its on-demand services and computing power.
Microsoft, from selling packaged software products installed on personal computers have moved towards its new on-demand service offerings aimed at technology buyers like software developers and corporate ITs.
Earlier this week, Microsoft announced its two big deals which are symbolic of its new business strategies – one in which UBS, the Swiss banking company, shifted its risk-management tools to Azure, Microsoft’s cloud computing platform and; Maersk, the shipping giant announced using Microsoft’s cloud computing services to store and even analyze logistics data.
Satya Nadella, CEO Microsoft, said in an official statement, “Our results this quarter reflect the trust customers are placing in the Microsoft cloud. From large multi-nationals to small and medium businesses to non-profits all over the world, organizations are using Microsoft’s cloud platforms to power their digital transformation.”
Sales in Microsoft’s server software and Azure accounted for 39 percent of its operating income in the most recent quarter, while revenue was 11 percent up as compared to a year earlier.
All and all, the revenue summed up to reach $22.09 billion during the quarter. While the net income rose to $4.8 billion, on a per share basis, it was 61 cents, that was again up from 47 cents from a year earlier.
Investors have high expectations from the company as it continues to earn better in the recent quarters leaving many large technology companies behind.
On the other hand, its phone hardware unit, that was acquired from Nokia for $7.9 billion in 2014, didn’t record a mention worthy revenue. LinkedIn which was acquired recently, is expected to yield better results with growing times.