AppNeta is one of Inc. Magazine’s Best Workplaces 2019
We're Hiring
Get our latest news, blogs and product updates

Microsoft earnings jump on prospect of second digital transformation
by Paul Davenport Paul Davenport on

With the pandemic forcing many businesses to adopt a work-from-anywhere posture, Microsoft has emerged as the enterprise go-to for scalable and agile cloud solutions, pushing the company’s Q2 quarterly revenue to a higher-than-expected $43.1 billion.

This exceeds Microsoft’s quarterly revenue targets by almost $3 billion, as Microsoft’s stock was up 5 percent in after-market trading on January 26.

“What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” Microsoft CEO Satya Nadella said in a statement. “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.”

One particular bright spot for Microsoft over the quarter was their Intelligent Cloud services, which took in $14.68 billion over the quarter opposed to the company’s expected $13.76 billion. While Microsoft currently operates as the world’s second most popular cloud provider behind Amazon’s AWS cloud suite, experts anticipate Microsoft’s cloud growth to continue skyrocketing in the enterprise space for the foreseeable future.

“This current work from home environment is further catalyzing more enterprises to make the strategic cloud shift with Microsoft across the board with Azure growth remaining brisk,” Dan Ives, an analyst for Wedbush, wrote in a report ahead of Microsoft’s announcement.

Guiding enterprises through their second digital transformation

Supporting these forecasts are recent strategic partnerships inked by Microsoft, including a recent partnership to be the preferred cloud infrastructure for autonomous vehicle provider Cruise, a GM- and Honda-backed firm that’s aiming to commercialize self-driving technologies over the next decade-plus.

Another bright spot has been increased adoption of Microsoft’s enterprise UC solution Teams, which has seen it’s popularity explode over the course of the pandemic as the enterprise go-to for internal and external collaboration. The number of Teams users has exploded from 13 million in July 2019 to more than 75 million as of this past April (when pandemic orders for WFH were still nascent), with licenses continuing to rise as 2021 unfolds.

The company has also seen a boom in sales of its traditional consumer products over Q2, as consumers turned to Microsoft products like laptop, desktops, and tablet computers to support workers and students who were reliant on remote Internet access to complete their work and studies.

This all goes to emphasize the fact that it’s not just enterprises and institutions that are investing in new technologies to support a work-from-anywhere future, as consumers themselves are looking for the latest and greatest tech to stay connected wherever they need to access network resources.

Unfortunately, with so many stakeholders involved in delivering applications like Microsoft Teams and other cloud solutions out to end users, the number of potential issues in the various connectivity domains that exist in today’s remote work environment have exploded. This calls for enterprise IT teams to rethink their approach to network monitoring and management to ensure that they have a true understanding of app and network performance (and, in particular, the app delivery path) from the end-user perspective.

Whitepaper

Digital Experience Monitoring from AppNeta
To learn how AppNeta can help IT teams regain control over their end-user experience in this decentralized enterprise environment, download our whitepaper.

Download Whitepaper

Tags: cloud transformation, digital transformation, network transformation, work from home, work from anywhere, remote workforce, remote work, enterprise IT, network management, network performance monitoring, network monitoring, cloud migration, cloud adoption, enterprise cloud, cloud computing, cloud, microsoft revenue, microsoft earnings, microsoft teams, microsoft azure, microsoft cloud, microsoft

Categories

You might be interested in:

Go back to AppNeta Blog