Microsoft recently posted record revenue of US$24.5 billion for the December quarter, up 14 percent from the same period the previous year.
Interestingly revenue from the Surface device more than doubled from $400 million to $ 893 million. Also, Office 365 for business and Windows Azure both grew with triple digit increases, while Office 365 for Home also grew strongly.
It is interesting to see the constant grousing at how Microsoft is not in touch and failing as a business yet when you look at the numbers they reveal almost the complete opposite. Sure, Microsoft has challenges and doesn’t always get things right but when it comes to making money, which is what a business is supposed to do for its owners, it is a real cash cow.
This goes a long way to explain the dichotomy that is evident today when it comes to technology. There are certainly many hip and interesting technology companies out there, but how viable are they really? How much real profit do they generate? For all its faults, you do have to credit Microsoft with being able to adapt to the business environment and continue to make money. You also have to applaud the fact that they know what to give their customers and make a good return from this.
Microsoft is a very mature company and certainly not as nimble as many of its competitors, however it can still successfully do what a business needs to do and that is generate profit in an every changing market.
So next time you hear people talking down Microsoft and their products, ask yourself whether they really know and whether where that is actually the case, because it surely isn’t showing on their bottom line.