Kelsey Mason

Editor’s note: All things lead back to cloud for Microsoft, and that’s not a bad thing, says Technology Business Research Analyst Kelsey Mason after reviewing the tech giant’s latest earnings report which was disclosed Thursday. HAMPTON, N.H. – The cloud stands out within Microsoft’s corporate performance Microsoft’s corporate revenue growth reached double digits for the first time since 2014. While LinkedIn was a large contributor to this growth, organic growth was also strong, driven by an increasing mix of cloud revenue. [“Innovation across our cloud platforms drove strong results this quarter,” said Satya Nadella, chief executive officer at Microsoft,...

Editor’s note: Microsoft has a strong grasp on how customers’ IT environments are evolving and the company has put the commercial assets and roadmap in place to drive long-term growth as customers hybridize their IT and become more mobile. HAMPTON, N.H. – Microsoft has a strong grasp on how customers’ IT environments are evolving and the company has put the commercial assets and roadmap in place to drive long-term growth as customers hybridize their IT and become more mobile. Revenue contraction of 5% year-to-year and a 460 basis-point-decline in operating margin in 1Q16 show that Microsoft’s portfolio mix is...

Microsoft has realigned its strategic focus, investments and financial reporting around three key ambitions: reinvent productivity and business processes, build an intelligent cloud platform and create more personal computing. Aligning complementary assets such as Azure with server products, Office 365 with Dynamics, and Windows with devices, search and gaming will be beneficial as Microsoft aims to grow lifetime customer value. TBR believes Microsoft’s cloud adoption has hit an inflection point, where net-new subscriptions and renewals will more than offset any declines in traditional licenses as Microsoft upsells premium services such as analytics and security. Though total revenue declined 12%...

Analysis: Microsoft (Nasdaq: MSFT) took a big write-down for smartphone assets in its latest earnings, but a host of other changes such as a organizational and thousands of layoffs shows that CEO Satya Nadella is firmly committed to new ambitions. So says Technology Business Research analyst Kelsey Mason. HAMPTON, N.H. – The writing-off and shedding underperforming assets pivots Microsoft to pursue CEO Satya Nadella’s new ambitions. Nadella continues to hone Microsoft’s strategic focus on what he describes as the company’s three ambitions: reinvent productivity and business processes (Office and Dynamics), build the intelligent cloud platform (Azure) and create more...

Editor’s note: Microsoft’s latest earnings report shows that its strategy of focusing on lifetime customer value in the transition to the cloud stabilizes its performance, concludes Technology Business Research analyst Kelsey Mason. HAMPTON, N.H. – In the words of CEO Satya Nadella, Microsoft has been able to “transform and perform” simultaneously, while competitors struggle to stay afloat in uncertain waters as customers move from license-based models to subscription. This is evidenced by Microsoft’s increasing focus on annuity relationships, which made up 82% of commercial revenue. Microsoft’s user-focused portfolio gives it a leg-up in this transformation against its data center-focused...

Editor’s note: The latest earnings report is in, and it shows that Microsoft (Nasdaq: MSFT) is succeeding in navigating the change in IT consumption models, writes Kelsey Mason of Technology Business Research. HAMPTON, N.H. - Triple-digit year-to-year growth in both commercial cloud and Office 365 home subscribers contrasted with total licensing declines of nearly 9% year-to-year (of which traditional commercial Office declined 13%). The results suggest Microsoft has reached a tipping point in transitioning its traditional Office license base to the cloud. Microsoft has managed to maintain relatively stable operating margins (29.4% in CY4Q14 compared to 32.5% in the year-ago...