Cloud rise helps Microsoft top earnings expectations

SAN FRANCISCO: US software colossus Microsoft reported a slip in quarterly profit but still topped expectations due to rising demand for offerings in the Internet cloud.

Microsoft posted a net profit of $4.7 billion for the fiscal first quarter, down 4 per cent from a year earlier, on revenue that remained essentially flat at $20.5 billion.

Microsoft shares jumped more than five per cent to $60.46 in after-market trade that followed release of the earnings figures.

“Our first quarter results showed continued demand for our cloud-based services,” Microsoft Chief Financial Officer Amy Hood said in a release.

Microsoft built its fortune on packaged software but has made a priority of offering applications as services hosted online and accessible from a broad array of Internet-linked devices.

The shift in strategy has been deemed vital for the company, as lifestyles have shifted to mobile devices and accessing cloud services whenever desired.

Microsoft also is among the US technology titans making a priority of artificial intelligence that lets machines think the way people do, potential to make online smarter and easier to engage.

The tech giant last month announced it was putting its machine brains into a Liebherr refrigerator, which can remind people what they need at the market as well as keeping their groceries fresh.

The move came on the heels of Microsoft saying it is working with Lenovo to allow apps such as Office and Skype to be installed on the Chinese computer titan’s mobile devices powered by Android software.

The firms said they were “deepening their strategic relationship” with a move that could add to the ranks of people using Microsoft programmes as services hosted in the Internet cloud.

Microsoft and leading Android smartphone maker Samsung announced a deal last year to bring the US company’s software to smartphone and tablets made by the South Korean firm. with the services