A quick tech earnings roundup, hitting only the stuff I think IT services companies care about. Alphabet is up nearly double on cloud, and has reduced their operating loss over half. This is a material revenue stream for them, and it’s non-ad based. It’s strong in both GCP and Workplace. Microsoft saw Azure grow 50% in the quarter, meeting expectations. Teams is now at 145 million daily active users. Dynamics 365 is up 45 percent over the previous year’s quarter. Don’t count Office out too – that’s up 5 percent, and consumer subscription of Microsoft 365 is up 27 percent.
Why do we care?
Google has always been criticized for being a one-revenue stream company. Despite all their big bets, they make money on ads. Their cloud efforts are trending quickly to being a legitimate, profitable business, and that’s significant.
Microsoft is crushing it. Cloud is the biggest driver – and subscriptions. Their collaboration platforms are a massive growth area. IT services companies, obviously, should be leveraging that.
Source: The Verge