Daily Management Review

Microsoft’s Cloud Computing Under Investors’ Watch


Investors are keeping close watch to see if the spending that were stalled have resumed or not.

Investors eyes earnings of Microsoft Corporation to detect signs of the latter is still receiving big corporate investors’ support for cloud computing, as smaller businesses show recovery signs sign speculation remained adrift about the sale of Xbox meeting a speed bump due shortage of chip.
Redmond has taken the lead in “pandemic-driven shift” towards “working and learning from home” as schools and businesses alike adopted to its “Teams collaboration software” besides turning to other cloud-based apps. However, the pandemic affected small businesses and resulted in shortage of semiconductor worldwide, report analysts.
The cloud computing unit of Microsoft, Azure, will be under investors’ radar while it competes with “Amazon.com’s Amazon Web services and Alphabet Inc’s Google Cloud”. Investors are keeping close watch to see if the spending that were stalled have resumed or not across “one-time projects at larger businesses to sales of apps such as Office to small businesses”.
According to a note by “Evercore ISI analyst”, Kirk Materne:
“We will look for both a growing bookings number and positive qualitative management guidance to indicate that the worst is behind us and customers of all sizes are now engaged deeper in digital transformation conversations”.
In November, Microsoft came out with “two new Xbox models” while the CFO, Amy Hood informed that the company expects to see a revenue growth of forty percent for gaming hardware as it faced “supply constraint”. Furthermore, Reuters reported:
“Analysts say the new consoles also factor heavily into growth of subscribers to GamePass, Microsoft’s $10 per month gaming service that had 15 million subscribers as of September”.