Wednesday October 23, 2019
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Microsoft Becomes The Most Valuable US Company

Microsoft's gaming revenue increased 44 per cent with Xbox software and services revenue growth of 36 per cent while Surface revenue increased 14 per cent

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Microsoft
Microsoft launches e-commerce portal for Telangana's handloom weavers. Pixabay

Microsoft has become the most valuable US company with $753.3 billion in market capitalisation, riding past Apple for the first time since 2010 when it came close to the Cupertino-based tech giant.

Apple, which became the first $1-trillion US company in August, came down to $746.8 billion on Friday, owing to lower-than-expected iPhone sales amid reports of its suppliers cutting cost and workforce.

Amazon with $736.6 billion is currently at third and Alphabet (the parent company of Google) with $725.5 billion is at the fourth spot.

“With Microsoft now overshadowing all three, including Alphabet Inc, the firm now looks to be the most valuable tech company of the Silicon Valley giants,” mspoweruser.com reported.

The investors are now betting big on companies with robust Cloud services and software services which are witnessing an increased demand from big and small enterprises the world over for their digital journey, at a time when giants like Facebook and Google face intense scrutiny for users’ data practices.

Riding on its growing Azure Cloud, gaming and Surface laptop portfolio, Microsoft posted a revenue of $29.1 billion and net income of $8.8 billion for the first quarter of its 2019 financial results.

Revenue was up 19 per cent while net income increased by 34 per cent. Operating income was $10 billion and increased 29 per cent.

“We are off to a great start in fiscal 2019, a result of our innovation and the trust customers are placing in us to power their digital transformation,” CEO Satya Nadella said in a statement.

Microsoft, PUBG
A sign for Microsoft is seen on a building in Cambridge. VOA

Revenue in Intelligent Cloud was $8.6 billion and increased 24 per cent. Server products and Cloud services revenue increased 28 per cent driven by Azure revenue growth of 76 per cent, Microsoft informed.

Revenue in More Personal Computing was $10.7 billion and increased 15 per cent.

“Windows commercial products and Cloud services revenue increased 12 per cent,” said the company.

Microsoft’s gaming revenue increased 44 per cent with Xbox software and services revenue growth of 36 per cent while Surface revenue increased 14 per cent.

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On the other hand, slower-than-expected demand has reportedly led Apple to direct its top phone assemblers, Foxconn and Pegatron, to halt a planned production boost for iPhone XR, a relatively cost-effective model that hit the shelves late last month.

Foxconn, a Taiwan-based company, would produce around 100,000 fewer units daily to reflect the new demand outlook, down 20-25 per cent from the original optimistic outlook, Japanese financial paper Nikkei reported earlier this week.

The estimates of iPhone XR have been cut by nearly 30 million shipments, according to an Apple analyst.

Ming Chi-Kuo, an Apple analyst working with TF International Securities, said earlier this month that shipment forecast for the iPhone XR has been cut from 100 million units to 70 million units during the product lifecycle. (IANS)

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SAP, Microsoft Partner to Help Customers Run their Business Processes on Cloud

"This partnership is all about reducing complexity and minimising costs for customers as they move to SAP S/4HANA in the Cloud," Jennifer Morgan

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SAP, Microsoft, Customers
It's a go-to-market partnership - from conceptualisation to sales -- that the two companies have entered into. Pixabay

Business software firm SAP on Monday announced a partnership with Microsoft to help customers run their business processes on Cloud.

The partnership, called “Embrace,” is aimed at helping accelerate customer adoption of SAP S/4HANA and SAP Cloud Platform on Microsoft Azure.

It’s a go-to-market partnership – from conceptualisation to sales — that the two companies have entered into.

“This partnership is all about reducing complexity and minimising costs for customers as they move to SAP S/4HANA in the Cloud,” Jennifer Morgan, Co-Chief Executive Officer of SAP, said in a statement.

SAP, Microsoft, Customers
The partnership, called “Embrace,” is aimed at helping accelerate customer adoption of SAP S/4HANA and SAP Cloud Platform on Microsoft Azure. Pixabay

“Bringing together the power of SAP and Microsoft provides customers with the assurance of working with two industry leaders so they can confidently and efficiently transition into intelligent enterprises,” she said.

Specifically, project “Embrace” on Microsoft Azure will provide customers with
a simplified move from on-premise editions of SAP ERP to SAP S/4HANA for customers with integrated product and industry solutions.

“SAP’s decision to select Microsoft Azure as its preferred partner deepens the relationship between our two companies in a differentiated way and signals a shared commitment to fostering the growth of the Cloud ecosystem,” said Judson Althoff, Executive Vice President, Worldwide Commercial Business, Microsoft.

SAP will lead with Microsoft Azure to move on-premise SAP ERP and SAP S/4HANA customers to the cloud through industry-specific best practices, reference architectures and Cloud-delivered services.

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However, SAP will continue with its longstanding policy of supporting choice for those customers who request alternatives based on business requirements. (IANS)