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Microsoft cloud strength drives financial results

Microsoft Corp. recently announced its results for the last quarter of 2020 with revenue of $ 43.1 billion. Up 17% compared to the same period last year. With operating income of $ 17.9 billion (up 29%) and earnings per share of $ 2.03 (up 34%). These results out-performing the analyst expectations. Net income rose 33% compared to the same quarter last year, reaching $ 15.5 billion.

Cloud strength – Microsoft grows and develops despite the global crisis

Microsoft cloud strength drives financial results

Microsoft grows and develops despite the global crisis. The revenue from the Dynamics ERP and CRM products and cloud services increased 21%. They were mostly driven by Dynamics 365 cloud revenue growth of 39%. In Q1 2021, Dynamics products and cloud services revenue were up 19%. They were driven by Dynamics 365 revenue growth of 38%. This growth is about three times faster than the market for ERP and CRM solutions.

“Accelerating demand for our differentiated offerings drove commercial cloud revenue to $16.7 billion, up 34% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We continue to benefit from our investments in strategic, high-growth areas.”

Many providers of business software have been hardly hit by the current crisis. Their stagnating or even declining turnover often translates into savings on the R&D spending. The pace of employing new employees is slowing down and innovation is falling. Microsoft’s sustained growth enables the company to continue its investments in the field of research and development. And also in personnel growth and continuous innovation. Speeding up its mission to empower every person and every organization on the planet to achieve more.

Second wave of digital transformation

“What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” said Satya Nadella, chief executive officer of Microsoft. “Building their own digital capability is the new currency driving every organization’s resilience and growth. Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform.”

Microsoft is a partner with a vision for the future

The ongoing strong results confirm the confident that the Microsoft Dynamics 365 implementation partners and their customers have in an ongoing innovative future. Dynamics 365 partners often say “a strategic choice for a Microsoft Dynamics 365 solutions is a choice for a stream of innovation that will never stop”. 

Microsoft’s shares have been on a steady rise, jumping 63% in 2020. This increase does not seem to be coming to an end. For the time being since Microsoft also announced stronger-than-expected revenue guidance for quarter that runs from January till March 2021. In reaction to these announcements, the Microsoft stock moved to an all-time high level.

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Microsoft Endpoint Manager

Microsoft Endpoint Manager – productivity from any device, anywhere

Brad Anderson (Corporate Vice President of the Commercial Management Experiences) at Microsoft Inspire talked about the importance of Microsoft Endpoint Manager and Microsoft 365, the move to the cloud and the importance of cloud solutions

Anderson began by recalling what the pandemic has taught us as entrepreneurs.

  1. You have to be in the cloud for agility and access.
  2. The importance of conditional access and zero trust.
  3. Keep your remote users just as productive, secure and efficient (or more).
Microsoft Endpoint Manager, Microsoft 365

Changed spending priorities

Undoubtedly, the new situation has changed the priorities of spending. COVID-19 will have a major impact on the finances devoted to IT. 33% of companies predict that total IT spending in the coming years will be lower than forecast. By contrast, 41% believe they will stay the same.

Greater importance of safety and mobility

Brad Anderson predicts that due to the current situation, companies will increase and strengthen areas such as cybersecurity, remote work, infrastructure services, mobile end devices and company management mobility. All these areas can be built and extended around Microsoft 365. Productivity, management, identity, but also security can be built around Microsoft’s platforms(including Microsoft Endpoint Manager). Importantly, the solutions are appreciated by IT and users. They are also distinguished by high trust among everyone.

Microsoft Endpoint Manager, Microsoft 365

Anderson encourages you to move your work and solutions to the cloud. It is important to modernize solutions also among your customers. Moving to the cloud and becoming more and more digital companies is an opportunity for success in the current situation. The trend of migration to the cloud is already visible. Companies that fail to do so in time will have less chance of doing well in an age where more and more activities are carried out online.

Microsoft 365 and Microsoft Endpoint Manager undoubtedly increases work efficiency and user satisfaction.

In support of this thesis, Anderson cites some data on the use of Microsoft 365:

  • 85% reduction in boot time
  • Instant resume
  • 2x battery life
  • 85% reduction in crashes
Microsoft Endpoint Manager, Microsoft 365

Importantly, the improvements are noticed by users.

Microsoft 365 also affects employes:

  • 38% more likely to feel that their PC experience helps them best serve customers/stakeholders
  • 75-point increase in net promoter score.
  • 121% more likely to feel valued by their company.  
Microsoft Endpoint Manager, Microsoft 365

If you are not convinced yet, is it worth implementing Microsoft solutions? Click on the link and find out more: