Both Amazon and Microsoft have delivered their quarterly results and benefit from the cloud business. The growth at Microsoft, however, is significantly larger than at Amazon, but weakens in both already.
While Amazon increased its lucrative business with Amazon Web Services (AWS) by 35 percent to approximately $ 9 billion, Microsoft's Azure sales growth of 59 percent continues the success story of its own cloud service , Overall, Microsoft earned $ 10.8 billion with the cloud division. Amazon can turn around 40 percent of AWS revenue into profit. For both providers, however, growth is slowing down. At Microsoft, Azure's growth was 64 percent a quarter earlier. Microsoft will continue to invest in innovation and growing the growing market, said Satya Nadella, who is pleased to see more and more leading companies rely on the Microsoft cloud.
Microsoft increases sales and profits
Thanks to the strong cloud business, Microsoft was able to significantly increase sales and profits in the last quarter. Sales increased by about 14 percent to 33.1 billion US dollars, the profit even by 21 percent to 10.7 billion US dollars.
Only Surface is in decline
Even with Office 365 Microsoft was able to increase sales and increased by 25 percent. All in all, Office 365 now has 35.6 million subscribers, according to Microsoft. The imminent demise of Windows 7 in the coming year also caused a weak sales increase in this area. Although the Xbox business is stable, it does not grow, with the Surface devices, sales are slightly declining at 4 percent.
Amazon's profit is due to 1-day delivery
On Amazon, however, the numbers for the third quarter looked different. Sharply increased spending cut profits by 28 percent to $ 2.1 billion, failing to meet the stock market expectations. The share fell by around eight percent. And even though Amazon's sales exceeded expectations and this has increased by 24 percent to 70 billion US dollars. The sharp increase in costs is mainly due to Amazon's efforts to deliver packages to customers faster and faster. Amazon spent around 50 percent more on shipping goods in the third quarter than a year earlier. In the US, Amazon is switching the guaranteed prime shipping from two to one day, which is an investment in the future and justifies the higher costs, the company said.