In traditional layouts, when businesses ran their own servers, it was difficult to upgrade and add new features. "Every time you wanted to do something new, you had to buy new hardware," said Sid Parakh, Seattle's portfolio manager at Becker Capital, who invests in Microsoft. "With the cloud, you have as many abilities as you want overnight."
A Microsoft metric – familiar with the long, wonky name of server products and revenue growth of the slider's services – traces whether this approach takes hold. It links sales for traditional data centers and shooting services, and last year it was 29 percent. higher than the year before. The fact that it grows on such a fast clip suggests that the cloud industry not only takes old revenue and moves it online.
The wonky metric is also a sign of what is known as a hybrid approach to cloud computing, where large organizations keep some information on their own servers and some in the cloud using of a simple set of tools to work with it all. Such an approach facilitates the company's transition to the cloud and is a particular strength for Microsoft.
What about Microsoft's consumer business?
Microsoft still sells Windows and Office software to consumers, and some of the Surface Tablet and laptop sales are also targeting individual customers. But the most interesting part of the consumer business is games.
The last fiscal year has been odd for Microsoft's gaming business, partly because it's late for a new Xbox game console (the company recently announced that it would be out after the 2020 holiday season). In the long run, Microsoft is working to become a player hub to stream games live from the cloud. It went so far as to enter into a partnership with Sony, which forms a competing console, where the companies will work with online entertainment together.
A year ago, Microsoft's gaming business played particularly well on Minecraft's success. The company warned investors that this quarter, games might not be so strong.