Microsoft’s stock has climbed by about a third in the past year and on Thursday 25th April, it became the third member of an extremely elite club; companies that have exceeded a total market value of $1 trillion USD. The other companies to have reached this astounding milestone are Apple, who hit it in August 2018, and Amazon in September 2018 however due to stock fluctuation, all 3 tech giants have since lost their $ trillion status.
Microsoft, who was once reliant on Windows Operating System for the majority of their revenue, have developed and grown their cloud services and hardware divisions. This resulted in all 3 divisions contributing roughly the same amount of revenue to the business this quarter.
Microsoft’s Azure is now second behind Amazon’s AWS for cloud services. Amy Hood, Microsoft’s Chief Financial Officer, said: “Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year-over-year.” Here at Logical, we’ve seen first hand the impact of growth in the cloud space for the tech companies we work with. Demand for Cloud Architects, Engineers and Consultants is on the rise. Businesses are moving to a cloud-first IT strategy however 84% of businesses lack the skills needed to effectively carry out this strategy. This translates into businesses looking for IT professionals to develop their skills in the cloud space to stay relevant.
Surface revenue continued to grow by 21% racking in $1.3 billion and contributing to the total hardware revenue of $10.7 billion. Office, Linkedin, and Dynamics generated $10.2 billion this quarter giving Microsoft a total revenue across all divisions of $30.6 billion.
So, who’s next to join the $1 trillion market cap club?
Let’s start with the obvious one; Alphabet Inc, the holding company for Google, is currently sitting at $834.2 billion and is in the running to be the fourth company to become a $1 trillion club member. However Berkshire Hathaway is the underdog, sitting at $532.73 billion just now, they may be far behind Alphabet but their stocks fluctuate more so they could still be in the running.
Has the growth of Microsoft’s cloud services left you struggling for Cloud Architects and Consultants? If so, Logical can help – get in touch at email@example.com