Microsoft smashed the numbers with its Q4 2019 earnings report, with revenues rising a stellar 12% and hitting on all cylinders with quarterly revenue of $33.7 billion. Notable increases include Azure, growth up 64%; Surface, up 14%; and LinkedIn, up 25%.
It was just back in 2017 when Microsoft eclipsed the $20-billion run rate for cloud offerings; this has now doubled, as reported by Venturebeat.
Source: Microsoft, “Fourth Quarter Fiscal Year 2019 Results” slide deck, July 18, 2019.
Here are some of the key numbers to digest if you are a Microsoft customer (and who isn’t) in the enterprise space:
It’s clear that the $26-billion LinkedIn acquisition is starting to pay off with the 25% year-over-year growth rate and continued new product launches and deeper integrations with the Dynamics business applications product suite. I would expect a few more quarters at least before we see the impact on revenues from the more recent $7.5-billion acquisition of GitHub.
Azure growth of 64% is stellar by any measure, especially on a growing base number, however there are concerns of Azure deceleration as recent growth rates eclipsed 100%+.I view these concerns as mostly unfounded, as the overall IaaS cloud market is still in the early growth years, as mind-blowing as that may seem in light of over $250 billion in 2018 cloud spend – and growing at 32% annually.
Source: Synergy Research Group, 2018.
Microsoft’s business is hitting on all cylinders. To achieve double-digit revenue growth at their scale is stunning. Customers must realize they are now “vendor locked” to Microsoft and must budget for regular cost increases. Microsoft’s strategy is to bring all of their customers up to market (MSRP) rate pricing; prepare for your discounts to steadily decline.
Artificial intelligence continues to fuel the arms race among ERP vendors. Earlier this year, Oracle announced that it has extended the AI (machine learning, to be more precise) capabilities within the ERP Cloud and EPM Cloud products.
It is no surprise that this year’s OpenWorld conference continued to focus on Oracle’s cloud efforts. We dive in to discover if Oracle is doing enough to catch up to the competition of Amazon’s AWS, Microsoft’s Azure and Office clouds, and Google’s GCP.
Oracle is aiming to make it extremely easy to shift your VMware workloads to the Oracle Cloud. In addition, it will provide you the capability to choose where your data will reside. This is an important feature for organizations concerned about data sovereignty.
Teradata’s legal action against SAP has serious potential ramifications on customer choice in the enterprise data analytics and warehousing (EDAW) space. SAP customers contemplating a move to HANA (or S/4HANA) may conclude their data is moving into an environment where SAP calls the shots.
Infor secured a multimillion-dollar product lifecycle management (PLM) deal with Turkish fashion retailer LC Waikiki.
Sage Business Cloud is not just one product. That was the message we received during an Info-Tech software vendor briefing with Sage. If you browse the Sage website it seems obvious Sage offers more than one application, but this may not always be obvious to some.
IFS AB owner since 2015, EQT Partners acquired Acumatica, another ERP vendor. While IFS and Acumatica are still expected to operate independently, sharing leadership and expertise between two different but successful products has interesting prospects to rival ERP giants like Oracle, SAP, Infor, and Microsoft in the not-so-remote future.
SAP and IBM have their Activate and Ascend agile methodologies for ERP implementation but do they work? I went hunting for success stories and did not find any…at first. I came across a SAP/IBM success story that indicates the potential for a happy medium between Waterfall and Agile methods.
Oracle just reported slightly better than expected Q4 FY19 results with revenues of $11.1B for the quarter and $39.5B for the year, up 3% in constant currency. A closer look at Oracle's change in the reporting of cloud revenues offers some clues about its longer-term cloud transition strategy.