Microsoft’s Nadella: Public Cloud Will Be ‘The Big Winner’ In Down Economy

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Wade Tyler Millward

Microsoft CEO Satya Nadella said, “The winner in all of this will be the public cloud because the cloud helps companies reduce the risk of threats.”

Cloud vendors have finally admitted that the slowing economy has affected their profits, but Microsoft CEO Satya Nadella sees the weak global economy as an opportunity to demonstrate the importance of public cloud.

The public cloud allows Microsoft customers to scale up and down based on demand, which can also help customers reduce energy costs, Nadella said during Microsoft’s biggest annual earnings call. new.

“The thing, though, from a customer’s point of view – the best way for them to support their spending and uncertainty is to move to the cloud,” Nadella said. “So we see the benefits of the cloud. So the big win in all of this is going to be the public cloud because the cloud helps businesses end the risk of what the risk demands.”

[RELATED: Microsoft Reports PC Trouble, Cloud Growth, SMB ‘Deal Moderation’]

How is Microsoft doing?

Although Microsoft Chief Financial Officer Amy Hood dealt with a lot of negative financial news during the company’s financial report for the first quarter of the company’s fiscal year 2023 – the quarter that ended Sept. 30 – Nadella still has many steps to show the company’s progress. stand firm on new products.

Azure Arc has more than 8,500 customers, more than double last year, Nadella said. Azure Machine Learning revenue has increased more than 100 percent for the fourth quarter in a row. And GitHub is at $1 billion in annual revenue and more than 90 billion people use the service.

At least three investment banks have expressed confidence in Microsoft’s long-term potential.

Wedbush wrote, “Our forecast remains that the cloud and underlying Office 365/Windows ecosystem will continue to have a large portion of Redmond’s momentum and drive growth in volume (and multiples) into FY23.” /FY24 despite this fall,” Wedbush wrote. in Wednesday’s news. “We believe that the transition to the cloud is still less than 50% penetrated and represents a huge opportunity for Nadella & Co. moving forward.”

He continued: “Our discussions with customers and partners confirm our strong confidence that MSFT can weather this economic storm and ultimately be in a strong position on the other side through cost reduction in the current system.”

A Wednesday statement from investment bank KeyBanc said that “despite the huge windfall in Azure on Windows/PC, we remain long-term in MSFT’s hyperscale cloud and integrated infrastructure package, development platform applications, and to expand the business application portfolio.”

A report from Credit Suisse said that despite a decline in business consumption in the small and medium-sized businesses and Microsoft’s Enterprise Mobility + Security business.

“It will likely continue to slow growth in the near term. We view the negative effects of the current optimization process as temporary. Similar to the optimization process in the past that grew in growth for ~1-2 quarters, followed by an increase in the number of new jobs that caused growth to return to other standards.

Here’s what Nadella had to say during Microsoft’s latest earnings call.

    Learn about Wade Tyler Millward

Wade Tyler Millward

Wade Tyler Millward is a partnership editor covering the cloud and channel partnership programs of Microsoft, IBM, Red Hat, Oracle, Salesforce, Citrix and other cloud vendors. He can be reached at [email protected]


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