Microsoft Embraces Cloud Technology for Small to Midsize Businesses

After finally embracing mobile and cloud services, Microsoft’s profit and revenue skyrocketed, increasing sales by 25%.

Known for its traditional software for computers, Microsoft decided to switch to cloud technology, allowing software to be delivered and managed online. Along with this, mobile phone segment has shown significant growth.

According to financial data and software company FactSet, the tech giant reported net income of $4.54 billion, or 54 cents per share, for its fiscal first quarter that ended in September — beating analysts’ consensus estimate of 49 cents per share. Revenue grew to $23.20 billion from $18.53 billion, topping analysts’ $22.01 billion forecast. This quarter’s sales include $2.6 billion revenue from the phone business, which Microsoft didn’t own a year ago.

Microsoft still makes most of its money from selling traditional software for businesses and home computers. But CEO Satya Nadella has acknowledged that traditional software has an uncertain future, as people buy fewer personal computers and businesses switch to software that can be accessed online, instead of installing programs on individual machines.

Among the many benefits of cloud technology include:


  • Cost savings: renting software ‘in the cloud’ on a ‘pay-as-you-go’ basis eases cash flow.
  • Lower IT support costs: you always have the latest versions of software without the need for IT support.
  • Mass storage: renting storage is cheaper than buying extra disk space for your PCs.
  • Reduced risk: data security is your hosting company’s problem instead of yours.
  • Access anywhere: get your documents over the web from home or just about anywhere else.


Recently, Microsoft has also partnered up with Dropbox, a file hosting service that offers cloud storage to easily access, save, share, and collaborate on your Office 365 documents stored on Dropbox without leaving Office.

The future appears brighter for small to medium sized businesses as cloud technology continually evolves. With cloud technology, you can stay in the game by doing business anywhere, anytime.

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