Microsoft Sales Lifted by Cloud Computing
Microsoft’s overall revenue last quarter rose to $28.92 billion, up 12 percent from the same period a year earlier, as everything from its Office applications business
and Xbox gaming console — both buoyed by cloud computing services — showed growth.
The company reported a net loss, including the tax charge, of $6.3 billion, or 82 cents
a share, down from net income of $6.27 billion, or 80 cents a share, a year earlier.
The portion of Microsoft’s cloud business that involves selling to companies — called commercial
cloud — grew 56 percent, to $5.3 billion, in the quarter that ended on Dec. 31.
Like many legacy software companies that cater to the huge corporate computing market, Microsoft was caught off guard by the emergence of cloud computing in the form of online storage
and computing services offered by the internet retailer Amazon.
SEATTLE — Microsoft has spent years adjusting its business to reflect a shift from traditional
software sales to cloud computing services delivered over the internet.
The report was blemished by a charge of $13.8 billion related to recent changes
in tax law in the United States, which caused Microsoft to report a net loss.
But putting aside the tax-related charge, which was widely expected
and will probably impact other tech companies, Microsoft’s business showed the kind of growth that has attracted investors in recent years.
