Business consumers all across the globe set Microsoft Azure as their top priority for cloud services. According to Reuters, the cloud service provider expects to see revenue between USD21.1 billion and 21.35 billion by the end of its next fiscal year. The share value of Microsoft Corp. is up 4% as a result. This revenue figure will be supported majorly by the Azure platform whose demand seems to boost in the coming year.
The reason behind Microsoft’s lead is its best-in-class cloud services available to consumers. These services are offered at less price compared to what other market leaders are offering, says Satya Nadella, the chief executive at Microsoft.
As part of the Azure platform, Intelligent cloud is Microsoft’s cutting-edge technology that combines cloud and AI to offer promising smart services. Businesses can deliver efficient services with Microsoft cloud’s intelligent tools and offerings.
If the company continues to attract consumers at its current pace, it’s expected to see a splendid double-digit revenue in their next fiscal year.
Microsoft’s strong revenue and robust forecast signals the flag for tech companies that the future is bright for those who offer products and services that help businesses moderinazine their operations. For example, Microsoft Azure services offer business to centralize their operational processes with a complete automation strategy. Using Azure’s data platform infrastructure, companies can enable DevOps to automate and optimize workflows and processes.
Microsoft’s revenue forecast has broken the Wall Street’s forecast of USD20.9 billion reported by Refinitiv data reporting, projecting an even higher demand for cloud services than was expected before.
Microsoft Azure sales boosted in pandemic
Earlier, as the COVID-19 led the commercial outlets to shutdown, Microsoft’s business in categories of Windows OEM (Original Equipment Manufacturer), surface tablets, and Xbox hardware had been badly affected. And currently, the company has taken the possibility of future lockdowns into account and anticipated a loss in its projected revenue. For example, the revenue might not touch $21 billion in case China extends its lockdown decision till May.
However, Microsoft’s Azure platform seems to be a panacea for companies in the wake of pandemic, as it’s supporting the hybrid or work-from-home models. In this regard, cloud platforms offer better collaboration among employees where the services are accessible to employees no matter where they are located.
Also as new digital data is created from the COVID led online world, businesses now want to accelerate their efforts in data analytics for better decision making and process optimization for fast digital delivery.
According to Nadella Microsoft made over double “$100 million-plus Azure deals” year-over-year in the third quarter of 2021 fiscal year.
Google on the other hand showed a decrease in its projected revenue in the first quarter of the current fiscal year. The share value of Google’s parent company Alphabet is down 2% as a result.
These numbers show that customers continue to turn to Microsoft as they accelerate their shift to cloud computing and the current unsettling economic environment has not yet impacted the company’s main growth driver,
Haris Anwar, senior analyst at Investing.com
With this tough competition in cloud market, competitors adopt differentiation strategy to offer innovative services to improve their customer base. For example, just recently Google Cloud has announced an innovative four-layer security for its cloud warehouse ‘BigQuery’.
