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Microsoft: no double-digit growth except in the cloud

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Microsoft: no double-digit growth except in the cloud

Microsoft’s quarterly results were eagerly awaited: they fell on Tuesday, January 24. From October to December 2022, the Redmond group (north-west) achieved a turnover of 52.7 billion dollars, or + 2% over one year, while it is a regular in growth at two figures. Its net profit stood at 16.4 billion, down 12% year on year, according to its earnings release. The company announced last week the dismissal by the end of March of nearly 5% of its workforce, or around 10,000 employees, to cope with economic uncertainty and changing priorities of its customers.

She also indicated on Monday January 23 that she was going to invest “several billion dollars” to expand her partnership with the specialist in artificial intelligence (AI) OpenAI, creator in particular of the conversational robot ChatGPT, which arouses enthusiasm and dread even at home. giant Google. Microsoft will “transform the most advanced AI models into a new computing platform”, promised boss Satya Nadella, quoted in the press release. In the meantime, the group’s quarterly results were eagerly awaited by the market, to measure the evolution of demand for remote computing, or cloud.


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The giant saved by the cloud

Its “intelligent cloud” activity, which brings together its servers and data analysis services, brought in $ 21.5 billion in the second quarter of its staggered fiscal year (+ 18% year on year). Growth in its remote computing platform, Azure, which was 31% lighter than usual, boosted activity. On Wall Street, Microsoft took about 4% during electronic trading after the close of trading. “Some cloud contracts could be scaled back as companies re-evaluate their data center plans” because of budget challenges, notes Dan Ives of Wedbush.

But according to this analyst, the appetite of the government and the army for these infrastructures is undeniable, and many companies have not yet made their digital transition. “We believe that the transition to the cloud (of companies and organizations) remains below 50% and therefore represents a massive opportunity for Microsoft” despite the poor economic situation, he specifies.

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