Under novel coronavirus pneumonia, almost no enterprise can be protected from the epidemic. As a world-class technology giant, Microsoft is no exception. But Microsoft is actually a lucky one. It has survived the epidemic very well. At least, from the external factors, the epidemic seems to have skilfully avoided the main business scope of Microsoft, and even helped Microsoft to some extent through the emphasis on social distance.
of course, besides luck, Microsoft also needs to rely on its technological strength – as Satya nadellla, CEO of Microsoft, said: technology intensity is the key to business resilience.
just on July 22, Microsoft released the fourth quarter of fiscal year 2020 as of June 30, and the full year report of fiscal year 2020 – a good result.
according to the financial report, Microsoft Q4’s revenue was $38.033 billion, up 13% from $33.717 billion in the same period last year, and its net profit was $11.202 billion, down 15% from $13.387 billion in the same period last year.
here is a data to be noted: the reason why Microsoft’s net profit fell was that last year’s net profit included a one-time tax concession of about $2.6 billion.
if we do not comply with non GAAP, Microsoft’s profit in the same period last year should be $10.62 billion, and this year’s profit will be $11.201 billion, an increase of 5% over the same period of last year – the adjusted earnings per share will still be $1.46.
it is worth mentioning that Microsoft closed its stores in the last quarter, which included a loss of $450 million and also affected Microsoft’s net profit.
according to the data provided by Yahoo Finance Channel, 26 Wall Street analysts had expected Microsoft’s fourth quarter revenue of $36.5 billion, while 29 analysts had expected Microsoft’s fourth quarter earnings per share of $1.37.
the revenue of office commercial products and cloud services increased by 5%, driven by the 19% increase in the revenue of office 365 Business Edition; the revenue of office consumer products and cloud services increased by 6%, and the number of consumers subscribing to office 365 reached 42.7 million.
among them, the revenue of server products and cloud services increased by 19%, and that of azure cloud services increased by 47% — while the revenue from enterprise services remained basically unchanged.
it should be noted that in this financial report, the year-on-year growth rate of revenue of azure cloud services was less than 50% for the first time, but it still showed a strong driving force.
we can see that in the last quarter, the performance of this sector was relatively bright. Microsoft also stressed that this was due to the growth of games, surface and windows businesses, but at the same time, the advertising business declined.
it is worth mentioning that in the interpretation, Microsoft stressed that the non pro part of windows OEM revenue increased by 34%, which was driven by remote version and learning scenarios, but the pro part decreased by 4% because of the weak demand of small and medium-sized enterprises.
overall, Microsoft’s revenue performance in the last quarter is a typical example of the impact of the epidemic on technology companies. There are both positive and negative factors.
for a world-class giant like Microsoft, it is impossible for it to dissociate from the world-class epidemic. Therefore, in the case of inevitable damage to the marginal business, the key to its future development lies in its main business.
this is first reflected in the comparison of the three major sectors. Intelligent cloud, the second sector, has the highest growth rate, with a year-on-year growth rate of 17%; the revenue growth rate of azure is 47%, slowing down, but still very high, which is not inferior to AWS (Q1 in 2020 is 33%).
second, Microsoft also highlighted its commercial cloud revenue, which reached a milestone in fiscal year 2020.
according to cfoamy hood, Microsoft’s executive vice president and cfoamy hood, in fiscal year 2020, Microsoft’s business cloud revenue exceeded $50 billion, which is the first time in history. Meanwhile, Microsoft’s business orders also increased by 12% year-on-year.
Microsoft’s performance in cloud computing business is due to the transformation led by Microsoft CEO NADELLA since taking office six years ago, especially in cloud computing.
in fact, azure has been adopted by 95% of the world’s top 500 enterprises, and is second only to Amazon AWS in the global public cloud service market.
if the embodiment of cloud computing in Microsoft is intelligent cloud, then at the other end of cloud computing, Microsoft’s another focus is intelligent edge – the two together constitute the era defined by Microsoft.
what we should emphasize is that once this closed-loop relationship is formed, it will naturally build a cloud based connection relationship, and cover work, learning, manufacturing, communication and other scenes, so as to broaden the social distance between adults and people – in other words, the better it develops, the greater the social distance between people. At this juncture novel coronavirus pneumonia is coming,
has increasingly found the importance of social distance, and society is also increasingly required for this closed loop relationship. The demand for digitalization of enterprises and organizations is also increasing.
because the real strength of Microsoft lies in that it has well carried this closed-loop relationship in the development of more than 40 years. As Microsoft CEO Nadra put it: “888]
organizations that build their own digital capabilities will recover faster and become stronger when they come out of this crisis. We are the only company with an integrated modern technology stack – supported by cloud and AI, and based on security and compliance – that will help every organization transform
there is no lack of confidence in Nadra’s words, but he is actually explaining Microsoft’s vision: to achieve digital transformation in the era of “Intelligent Cloud and intelligent edge”.