Cloud drives growth for Microsoft, Google

Cloud drives growth for Microsoft, Google

29 APR 2021

Microsoft and Google both reported strong growth in their cloud businesses during Q1, as more corporate customers moved workloads.

Adoption which started with the Covid-19 (coronavirus) pandemic is accelerating for Microsoft, CEO Satya Nadella explained in an earnings statement, adding commercial services were a key driver during the period.

Microsoft Azure cloud revenue was up 50 per cent year-on-year, with the overall Intelligent Cloud unit recording a 23 per cent rise to $15.1 billion.

The company noted a continuing “verticalisation” of Azure involving tailoring services for specific industries. This is relevant to the mobile industry since Microsoft has made clear its intention to be a player here, purchasing telecom software companies Affirmed Networks and Metaswitch in 2020.

CTO Amy Hood said continuing cloud investment will drive a sequential increase in capex from $6 billion in Q1.

Google, meanwhile, recorded a 46 per cent rise in revenue from its Google Cloud division to $4 billion: CFO Ruth Porat noted its Google Cloud Platform outperformed its overall unit in terms of sales growth.

The company generated overall net profit of $17.9 billion and revenue of $55.3 billion.

But the company continues to face legal challenges: hours after its Q1 earnings announcement, a class action commenced in the UK over accusations Google secretly took consumer data from up to 5 million iPhones and used this to sell advertising.

Reuters reported Google could face a claim of up to $4 billion.



Martha DeGrasse

Freelance tech journalist Martha DeGrasse (@mardegrasse) is delighted to be contributing to Mobile World Live. Martha has written for a number of telecom and wireless publications, and was a writer, editor and video producer at RCR Wireless News for almost...

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