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Microsoft Profits Rises by 14 Percent Making its Value Close in Trillion Dollar Mark

Profits in the quarter to March 31 rose 19 percent to $8.8 billion on revenues of $30.8 billion, an increase of 14 percent from the same period a year earlier

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FILE - A sign for Microsoft is seen on a building in Cambridge, Massachusetts, March 18, 2017. VOA

Microsoft said profits climbed in the past quarter on its cloud and business services as the U.S. technology giant saw its market value close in on the trillion-dollar mark.

Profits in the quarter to March 31 rose 19 percent to $8.8 billion on revenues of $30.8 billion, an increase of 14 percent from the same period a year earlier. Microsoft shares gained some 3% in after-hours trade, pushing it closer to $1 trillion in value.

It ended the session Wednesday with a market valuation of some $960 million, just behind Apple but ahead of Amazon.

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Profits in the quarter to March 31 rose 19 percent to $8.8 billion on revenues of $30.8 billion, an increase of 14 percent from the same period a year earlier. Pixabay

In the fiscal third quarter, Microsoft showed its reliance on cloud computing and other business services which now drive its earnings, in contrast to its earlier days when it focused on consumer PC software.

“Leading organizations of every size in every industry trust the Microsoft cloud,” chief executive Satya Nadella said in a statement.

Commercial cloud revenue rose 41% from a year ago to $9.6 billion, which now makes up nearly a third of sales, Microsoft said.

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Microsoft shares gained some 3% in after-hours trade, pushing it closer to $1 trillion in value. Pixabay

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Some $10.2 billion in revenue came from the “productivity and business services” unit which includes its Office software suite for both consumers and enterprises, and the LinkedIn professional social network.

The “more personal computing” unit which includes its Windows software, Surface devices and gaming operations generated $10.6 billion in the quarter. (VOA)

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Amazon Asks Judge to Block Microsoft from Pentagon Project

The US government in October awarded the much-anticipated $10 billion Cloud contract for Pentagon to Microsoft

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Security guards stand at the reception desk of the Amazon India office in Bengaluru, India, Aug. 14, 2015. VOA

Amazon Web Services (AWS), the retail giant’s Cloud arm, has asked a US judge to force a stay of work on Microsoft’s $10 billion Cloud contract until the court can rule on Amazon’s protest over the Pentagon awarding JEDI to Microsoft.

Amazon had sought ‘preliminary injunction’ from the court to temporarily block Microsoft from starting work on the billion Joint Enterprise Defense Infrastructure (JEDI) project.

In a statement shared with Fast Company, an AWS spokesperson said that it is common practice to stay contract performance while a protest is pending.

“It’s important that the numerous evaluation errors and blatant political interference that impacted the JEDI award decision be reviewed. AWS is absolutely committed to supporting the DoD’s modernisation efforts and to an expeditious legal process that resolves this matter as quickly as possible,’ the spokesperson added.

Amazon filed a motion asking a federal judge to block Microsoft from working on any substantive tasks for the JEDI project while the court considers the matter. The motion makes good on Amazon’s previous pledge to try to pause work on the contract while the legal challenge is underway.

FILE - Microsoft Corp. signage is shown outside the Microsoft Visitor Center in Redmond, Wash.
FILE – Microsoft Corp. signage is shown outside the Microsoft Visitor Center in Redmond, Wash. VOA

Amazon last year filed a suit with the US Court of Federal Claims contesting the decision.

“AWS is absolutely committed to supporting the Department of Defense (DoD’s) modernisation efforts and to an expeditious legal process that resolves this matter as quickly as possible,” the AWS spokesperson said.

Also Read: Tencent Offers to Acquire Funcom Games for $148mn: Tech Report

Microsoft is set to start its work on JEDI Cloud contract from February 11.

The US government in October awarded the much-anticipated $10 billion Cloud contract for Pentagon to Microsoft.

In its complaint against the government decision, Amazon alleged Trump abused his position to put “improper pressure” on decision-makers for personal gains and show his hatred towards Bezos who owns The Washington Post. (IANS)