KUALA LUMPUR, Jan 8 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) reversed yesterday’s gains to close lower on Wednesday as investors took profit amid the negative performance of regional peers. At 5 pm, the FBM KLCI fell 14.96 points or 0.92 per cent to end at its intraday low of 1,614.83 from Tuesday’s close of 1,629.79. The benchmark index opened 0.87 of-a-point easier at 1,628.92 and hit an intraday high of 1,631.15 during the early morning session. Decliners trounced advancers 827 to 285 on the broader market, while 497 counters were unchanged, 761 untraded, and 10 others suspended. Turnover narrowed to 3.59 billion units valued at RM3.06 billion against Tuesday’s 3.91 billion units valued at RM3.29 billion. UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan noted that major Asian indices followed Wall Street’s downbeat performance, driven by t...
The earnings report is out for Microsoft Corp.
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.
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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