Why Microsoft will release outstanding fiscal first quarter cloud results in a quiet market

As the global market is still affected by SAP’s third quarter, I hope that Microsoft will release outstanding cloud computing results in its first quarter financial report later today, so as to avoid people’s panic that the sky above the cloud is falling.

Later this week, I believe we will hear more good news from Goofy’s ServiceNow on October 28th, and more good news from Amazon’s AWS and Google Cloud on October 29th.

(In my weekly Cloud Wars Top Ten Ranking, Microsoft ranked first, Amazon ranked second, Google Cloud is #4, SAP ranked 5thwith ServiceNow is #9)

Later, I will provide 3 specific reasons to make me confident about the upcoming number of Microsoft clouds, but first of all, we all need to keep in mind some macro issues that show the great power and vitality of the enterprise technology field:

• COVID-19 forces companies to meet new customer needs and requirements completely from the inside out, and cloud technology is by far the best way to deal with these digital futures.
• Even before the emergence of COVID, digital transformation has become a powerful and disruptive trend in many industries, and the large-scale migration to digital technology through the cloud is gradually Stronger Instead of reducing
• Facts have proved that the cloud is an ideal environment for many new powerful new tools and solutions. These new tools and solutions are completely changing the business. These new tools and solutions include AI, ML, IoT, predictive analysis, conversational AI, Autonomous technology and industry-specific application world; and
• In resetting future expectations, SAP also achieved 26% broad cloud growth and 16% cloud revenue backlog.

Microsoft-the world’s largest and most influential cloud provider-has been at the forefront of these high-growth disruptions.

Is the CEO of Microsoft Satya Nadella first said a phrase The unprecedented acceleration of the digital transformation program facilitated by COVID-19 has now become commonplace:

“We have seen digital transformation worth two years in two months. From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security, we work with our customers every day to help them adapt to and maintain an open business environment,” Microsoft.

Nadella made this statement as Microsoft six months ago Released the third quarter earnings report In the first quarter ending March 31, the shocking economic impact of the epidemic became apparent for the first time.

Despite the devastating blow to the global economy, Microsoft still maintains a high level of delivery because it has a way of thinking and technical depth, and is willing to quickly adapt to conditions we have never experienced.

This is Nadella 3 months ago Opening remarks on Microsoft’s fourth quarter earnings conference call:

With the support of our commercial cloud, we achieved record results this fiscal year, with revenue exceeding US$50 billion for the first time, an increase of 36% year-on-year.

The last five months have shown very clearly that the intensity of digital technology is the key to business resilience. Organizations that build their own digital capabilities will recover faster and become stronger in this crisis.

We see companies accelerating the digitization of every part of their business from manufacturing to sales and customer service to reimagine how they meet customer needs, from curbside pickup and contactless shopping in retail to remote in healthcare Medical.

And, as Microsoft releases its first-quarter earnings report later today, I believe it will once again report strong cloud growth of 30% or higher in all its cloud businesses. These are 3 reasons why I am confident about this:

1. Commercial cloud revenue grew by at least 30%. In the first quarter of the same period last year, Microsoft stated that its cloud business grew by 39% (constant exchange rate) to $11.6 billion. If it grows at a rate of 30% in the current first quarter, then this incremental growth will mean another $3.6 billion in cloud business. Microsoft’s cloud business has reached a scale never seen before in the cloud industry.
2. Dynamics 365 revenue will maintain a rapid growth of 40%. Although Azure has attracted the most attention-it is true-don’t forget that Microsoft has quietly established a $2 billion AI-driven enterprise application business through Dynamics 365, and I hope it will maintain the 40% growth rate achieved last time 25 Cent coins.
3. Microsoft has mastered the skills to establish strategic partnerships with customers. From Novartis to Kroger to FedEx, Nadella promotes a new type of customer interaction that goes beyond simple transactions, and is centered on the mutual creation of new features, innovations, products, services and revenue by both parties.