Home » Software Review » Microsoft reports increased revenue from Surface and other services, but the Lumia collapse

Microsoft reports increased revenue from Surface and other services, but the Lumia collapse

The Redmond giant, one of the colloquial ways that are known to Microsoft, is one of the most important technology companies today, not only in terms of development of mobile devices or productivity software but also in the development of artificial intelligence able to recognize human body language.

Today the company has made an important announcement, announcing earnings for its first fiscal quarter of 2017. This is an ordinary movement that is constantly being done, but it serves to analyze the financial situation and possible future steps that the US firm could give.

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Cloud services, strength of Microsoft

In its publication, Microsoft reveals earnings 20.5 billion and net income of4.7 billion dollars. Regarding the various business segments of the company, office automation services and cloud show growth: the business side of Office increased 5%, while the share of consumption grew by 8%.

However, where it is a real increase is in cloud services, as happened the last quarter. The services of “intelligent cloud” signature rose 8%, the server business grew 11%, but is Azure to be the cloud with a staggering growth of 116%.

Meanwhile, Windows no growth in profits but not losses, which is considered stable and static. Perhaps with new additions coming soon, for example the new Paint, We will grow this business in the near future.

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What about the hardware?

Microsoft has virtually abandoned the market for mobile (at least temporarily), then it is not a big surprise that the profits of this section plummet by 72%. In contrast, it is the business of Surface, which continues to bear fruit: 38% more profit than the previous quarter, which translates to 926 million dollars compared to 672 million in the same period last year.

It is due to the great acceptance that the tablet Microsoft has shown that the introduction of a new model is expected in the next event on October 26. Will we see finally the Surface Phone? A Surface All-in-One?

Finally, the video game business of the company also holds its own. Although profits from the sale of hardware decreased by 5% active accounts Xbox Live accounted earnings $47 million, up from the 39 million obtained in the same quarter last year.

Apparently, the future of Microsoft is in the software

Microsoft gains in the market for Surface enjoy good health, and even can improve depending on what is presented next week. However, with the abandonment of mobile and also of the wearables, the future of the company seems to be in the software.

It is because of this that more than 400 million users and a first major update arrived a few months ago, the company must continue working on the development of Windows 10 to convert it into a system more capable and productive, apart from, of course, not neglect their cloud services and office automation.

What we can expect more surprises giant Redmond? Maybe in a few days we find out.

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