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Microsoft “Reinventing Itself” as a Cloud Company

Financial results released regarding the performance of Microsoft have shown that their willingness to embrace the cloud is proving to be beneficial despite an overall decline in the company.

Microsoft’s revenue for the final quarter of 2015 was $23.8 billion, however, this represented a 10% decline in figures in comparison to the same period last year.

The figures showed that there was a considerable drop in some markets with the phone industry suffering the most severe drop in sales. Indeed, the drop in phone revenue represented a 26% decline in the overall profits of the company. However, following a reduction in the number of phone staff, it is clear that the company intends to reinvent itself and reinvest some of the profits in the upcoming cloud sector.

While software continued to have consistent sales with Microsoft Office and other programs continuing to sell well, the cloud had the biggest growth for the company. According to the figures released by the company, the revenue from their cloud company, Azure, rose by 127% with sales of Azure Premium Services like Machine Learning being three times higher in the final quarter of 2015. Experts have stated that this is due to the growth of the cloud service in general and the continuing popularity of the Azure system.

The boost in the growth of the cloud for Microsoft comes following the announcement that the company intends to invest 1bn-worth (£700m) of cloud computing resources to organisations it deems to be working for the “public good”.

Microsoft’s chief legal officer Brad Smith wrote in a blog explaining the decision: “Cloud services can unlock the secrets held by data in ways that create new insights and lead to breakthroughs, not just for science and technology, but for addressing the full range of economic and social challenges and the delivery of better human services.”

While some have accused Microsoft of exposing their product to others in the hope that users will eventually embrace their service, the company has insisted that they are trying to encourage everyone in the world to embrace new technology, and in particular, the cloud.

Companies Embracing the Cloud in 2016

The expansion of major companies into the cloud demonstrates the growing demand for the cloud technology. With more development from major companies such as Microsoft, Google and even Amazon, the cloud is now seen by many as a more secure way of storing data and sharing documents that traditional security.

While major companies and international businesses have had the cloud for a number of years, recent developments in the market have seen charities and law firms slowly embrace the platform.

At Denovo, we are experts in helping law firms transfer to the cloud. Our team will not only aid you in finding the cloud type that is right for your law firm, but we also help you transfer your old server onto the more secure cloud platform.

If your law firm is considering embracing the cloud this year or if you wish to speak to one of our experts about any queries you may have regarding cloud technology, contact our team of experts today using our online contact form.