KUALA LUMPUR, April 8 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) erased earlier gains to close marginally lower on Tuesday as mild bargain hunting activities were offset by cautious mode over ongoing global uncertainties. At 5 pm, the benchmark index slipped 0.24 of-a-point, or 0.02 per cent, to 1,443.56 from yesterday’s close of 1,443.80. The benchmark index opened 7.63 points firmer at 1,451.43 and climbed to as high as 1,454.58 in early trade before retreating to a low of 1,440.89 towards the end of the morning trading session. It then moved in a yo-yo mode during the afternoon session. In contrast, the broader market was positive with gainers outpacing decliners 669 to 367, while 419 counters were unchanged, 894 counters untraded, and nine others suspended. Turnover dwindled to 3.32 billion units valued at RM2.83 billion against 5.35 billion units valued at RM4.67 billion on Monday.
The earnings report is out for Microsoft Corp.
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| Behind the big figures, statistics indicate Microsoft going the Right Direction |
Microsoft's earnings today gave plenty of reasons for one to be positive about the company although it also saw the impact of a $2.1 billion operating loss factored in from the Nokia writeoff.
Looking at the off balance sheet revenues in Microsoft, you can see that there is a $24.5 billion basically locked down, but that hasn’t been delivered yet. It is likely that Microsoft Office 365, the company's cloud-delivered, subscription-based productivity suite is the driving force for a significant amount on Microsoft's off-balance sheet revenues.
It is obvious that the company is loving subscription methods to earn money more as the company switch their business focus. Microsoft Office 365 is the biggest revenue driver of the company’s enterprise cloud offerings. And it’s growing fast: Microsoft reported today that Office 365 has added 3 million subscribers in the last quarter, bringing it to 15.2 million users total.
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| Can Nadella drive the change in Microsoft? |
Microsoft CEO Satya Nadella who has been praised for his effort to drive Microsoft change repeatedly called out Azure's strong growth in the enterprise via a conference call with analysts.
Commercial cloud ARR (the Microsoft division that covers cloud services sold to businesses, which includes Office 365, Azure and Dynamics) is at $8 billion, up from $6.3 billion last quarter, and $5.5 billion the quarter before. The growth gives a lot of reason to be optimistic with the company.
Microsoft won’t say how much of that growth is due to Azure. But the company did say that revenue doubled, and CPU usage also doubled, meaning more companies are buying Azure, straight up. Microsoft salespeople have been giving customers free Azure credits so they can kick the tires and see how it works, and it seems to have been paying off.
It is clearer that the Redmon company is shifting towards a new business model, where customers keep paying a little bit of money at a time, rather than a lot all at once. It’s painful for anybody watching the still-shrinking numbers of its legacy Windows and Office businesses, but the idea is that Microsoft will eventually reap big rewards.
Up next to watch for Microsoft: Can Windows 10 live up to the hype?
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