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Tech earnings shows cloud progress

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: TechCrunch

Source: ZDNet, ZDNet

Source: The Verge