Azure From Microsoft Slowing Down In Revenue

In a recent public announcement, Microsoft Corp was able to reach the target set by Wall Street both with the forecast and the results of the quarter figures. It was noted though that the growth of the cloud computing sales of the company’s Azure is slower compared to the year before. Azure is a service developed by Microsoft that provides cloud computing for healthcare and has been showing serious growth up until last year.

Microsoft is considered to be one of the most valuable tech companies based in the United States. Its shares declined by 2 per cent after an extended trade despite the fact that its earnings per share are slightly higher compared to the estimates released by analysts. At closing, there was a 3.3 per cent increase in stock prices.

Azure is the flagship of Microsoft in their cloud product department. The revenue growth for the second quarter of the fiscal year, which ended on December 31) was only 76 per cent. The figure is lower compared to last year’s surge when sales reached 98 per cent.

Microsoft is known in the international for its Windows software but it decided to venture into the cloud market. Its greatest competition is Amazon.com since it is the current dominant player.

Despite being a new player, the company was able to gain traction rapidly especially in the retail industry. The company’s current goal now is to level with the e-commerce success of Amazon. For the first month of the year, Microsoft revealed that it has partnered with Kroger Co as well as Walgreens Boots Alliance Inc. It has also signed a five-year contract with Walmart Inc the previous summer.

Satya Nadella, the chief executive of Microsoft, said that their commercial cloud services are off to a good start because of their growing relationship with top companies in different industries like healthcare, retail and financial services.

Wall Street, on the other hand, was not surprised with the high earning records because many companies all over the world are getting rid of their data centres in favour of cloud computing. While Microsoft’s earning from services in cloud computing for healthcare is starting to decline, it has other revenue sources in the market that is keeping them on top of everything.