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.
The impact of COVID-19, as it became a global pandemic in Q1 of 2020, has affected user sentiment toward software during a growing period of fear, uncertainty, and doubt. To analyze the impact, SoftwareReviews compared Satisfaction (willingness to recommend to a peer), ability to deliver Business Value (fair cost to value), and Likeliness to Renew prior to March 10 and post March 10.
An enterprise application selection or implementation has most likely been heavily impacted by COVID-19. Do not hit the brakes; stopping and restarting projects increases the risk of failure. Slow down or speed up? Which is the right strategy for your organization?
The math did not add up for SAP to sunset license support for legacy ECC/Business Suite 7 clients, as we predicted. I’ve fielded numerous calls asking, “Will SAP hold firm on its 2025 end-of-support date?" We finally have SAP’s answer: a resounding “NO.”
SAP customers seeking to move to S/4HANA must navigate four distinct license models, each tied to a separate deployment model (perpetual license, subscription via HEC, S/4HANA Cloud Single-Tenant, or S/4HANA Public Cloud). This note explores the license characteristics and commercial options available when choosing to procure perpetual licenses for S/4HANA.
SAP’s native-cloud play through S/4HANA dangled the hopes of a simplified license structure to SAP customers. Instead, SAP customers now must navigate four distinct license models, each tied to a separate deployment model.
SAP continues to claim robust adoption of S/4HANA while cajoling customers to migrate. Should ECC customers cave into the demands and promises of S/4HANA? Or should they stay the course and call SAP’s bluff on the looming end-of-support date?
Oracle reported slightly better-than-expected Q2 FY20 results, but despite substantial revenue numbers and high growth areas such as Oracle Cloud, Fusion ERP, and Autonomous Database, it’s unclear when these market segments will accelerate revenue growth materially.
Infor doubles down on better implementations with Signavio’s process mining and intelligence technology. The partnership will leverage the Signavio web-based business process modeling and intelligence tool to further accelerate the decision-making process.
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.