PC Market Caught Fire in Q4. Well, in All of 2020

The PC market was on fire in the fourth quarter.

In its quarterly tracking of worldwide PC shipments, IDC reported preliminary numbers of 26.1 percent year-over-year growth to 91.6 million units.

And the fire could have been hotter.

"Every segment of the supply chain was stretched to its limits as production once again lagged behind demand during the quarter," said IDC analyst Jitesh Ubrani in a statement Monday. "Not only were PC makers and ODMs dealing with component and production capacity shortages, but logistics remained an issue as vendors were forced to resort to air freight, upping costs at the expense of reducing delivery times."

Citing pandemic-related demand factors such as work-from-home, remote learning, gaming and monitors, IDC predicted the boom in PC sales has a ways to go.

For the full year, market growth was 13.1 percent. The research house said the last time PC growth was that strong was 2010, when the market grew by 13.7 percent.

Lenovo led all vendors in worldwide PC shipments for Q4, followed by HP Inc., Dell Technologies, Apple and Acer Group.

Posted by Scott Bekker on January 11, 2021 at 10:04 AM0 comments


Microsoft: Partner 2021 Priorities are Remote Work, BC/DR, Security, Cloud Migrations

In the holding pattern that is early 2021, Microsoft's priority guidance to partners for the new year is for more of the same.

Microsoft channel chief Gavriella Schuster detailed her view of partner priorities and opportunities this week in a blog post that largely echoed earlier guidance from Microsoft Inspire, the annual July partner conference that helps kick off Microsoft's fiscal year.

As the ongoing coronavirus pandemic leads to renewed lockdown calls around the world, sets new daily death records in the United States and brings an uncertain vaccine rollout schedule, organizations and the partners who serve them find themselves in a similar technology circumstance to most of 2020. To wit, an uncertain business environment, ambiguity about when or if all employees can go back to the office, and limitations on IT spending driven by all that uncertainty.

Schuster, nonetheless, strikes a hopeful note about the challenges. "While some of these factors will unavoidably carry over to 2021, I am confident things are headed in the right direction, and I see a bright future on the horizon for our partner ecosystem," Schuster wrote.

In her post as head of the Microsoft One Commercial Partner organization, Schuster identified four key priority areas that Microsoft hopes its partners will focus on and succeed in during the coming year.

Remote work, unsurprisingly, leads the list. "While the initial exodus to remote work occurred early last year, organizations of all sizes are still evolving in response," Schuster wrote. Her post called for additional adoption of Microsoft Teams and other Microsoft 365 components.

Schuster also pointed to new opportunities in business continuity, noting the infrastructural changes organizations have had to make in the last year that haven't all been followed by revised and reinforced backup and recovery plans.

Like almost every year, security earns a place on the opportunity list. "The mass shift to remote work has made this even more critical for every organization worldwide," she said.

Finally, cloud migrations are another key opportunity area, Schuster said. She highlighted the way Microsoft has been simplifying the migration process for customers to turn to cloud adoption.

The post gives lip service to the term "digital transformation," the major theme of the last few years from Microsoft to its partners. However, what's called "digital transformation" now is dialed back substantially from the heady definitions of 2019 and earlier, when it referred to unlocking massive business potential by reinventing processes through innovative new applications and application modernization. The term now seems to refer more to the survival-oriented operations of supporting remote workers, reducing datacenter expenses and rejiggering business continuity/disaster recovery coverage.

That said, many of these more limited projects can be a stepping stone toward more ambitious projects in the future. When the pandemic recedes, organizations with more robust cloud infrastructures may be more ready to invest in and execute truly transformative projects than they had been before the crisis.

With luck, it's "digital transformation lite" in 2021, involving the types of priorities Microsoft is recommending, followed by "digital transformation heavy" in 2022.

Posted by Scott Bekker on January 07, 2021 at 9:50 AM0 comments


U.S. Channel Chief Willis Leaving Microsoft

Microsoft U.S. Channel Chief David Willis announced Friday that he would be leaving Microsoft in January after 28 years at the company.

He didn't use the word "retire" in a blog post on the official U.S. Partner Blog, and some of his phrasing left open the possibility that he might emerge as an executive somewhere in the future. However, Willis suggested that his focus in the near future would be on family time, leisure activity, travel and volunteering.

"Personally, I've always lived life with a 'work hard, play hard' mentality, and I'll be shifting my balance from less work to more play, as I spend much more of my time on passions that include snowboarding, playing hockey, my guitars, spending more quality time with family & friends, and eventually some fun travel experiences once COVID-19 eases up. I'm also looking forward to participating in more volunteer opportunities and giving back to the community. I thank Microsoft for making it possible for me to be in this position," Willis wrote.

Willis said that it wasn't an easy decision to leave Microsoft, and that he was proud to have spent most of his career there.

Willis joined Microsoft in Canada in 1992 and held a number of marketing and sales roles in his first decade with the company, according to his LinkedIn profile.

He's been a fixture of the partner community since becoming the vice president for Small and Midmarket Solutions & Partners (SMS&P) in Canada in 2003. Later he held the positions of VP of U.S. East Region for SMS&P and VP of U.S. Dynamics.

In 2013, Willis became Microsoft's U.S. Channel Chief, when the full title of the role was corporate vice president of U.S. SMS&P. In the major reorganization of 2017, when the partner organization became One Commercial Partner (OCP), Willis essentially maintained the same function as CVP of U.S. OCP.

A successor has not been named. Willis plans to stay through January to assist with the transition.

Posted by Scott Bekker on December 04, 2020 at 1:47 PM0 comments


Sirius Buys Champion Solutions Group, MessageOps

Sirius Computer Solutions snapped up Boca Raton, Fla.-based solution provider Champion Solutions Group and Champion's cloud practice, MessageOps, which was one of the pioneering toolsets for Office 365.

With the acquisition, Sirius expands its national IT solutions integration business into the southeastern United States and strengthens its Microsoft cloud capabilities in both Microsoft/Office 365 and Microsoft Azure.

Sirius is a privately held company with 2,600 employees based in San Antonio, Texas. Terms were not disclosed for the deal, which closed on Monday and was announced Tuesday.

Joe Mertens, president and CEO of Sirius, described the MessageOps unit with its intellectual property around the Microsoft cloud as a competitive advantage for Sirius, which also has cloud partnerships with Amazon Web Services (AWS), Google Cloud, IBM and VMware.

"Joining forces with Champion provides an opportunity for Sirius to gain valuable intellectual property assets and expertise related to Microsoft Azure cloud services and Microsoft 365 productivity and collaboration tools, which will add value for our clients," Mertens said in a statement.

MessageOps solutions handle functions within Microsoft 365 environments such as monitoring, managing, reporting, synchronizing passwords and migrating data across environments. Originally a private company that was later acquired by Champion, MessageOps was among the first ISVs automating migrations and other tasks related to the Office 365 predecessor, Microsoft Business Productivity Online Suite (BPOS).

Mertens added that Sirius plans to offer expanded services and solutions to Champion's client base in Florida and the southeastern United States. Champion has also been part of Microsoft's National Systems Integrator (NSI) program and was a Tier-1 Cloud Solution Provider (CSP) for Microsoft.

Sirius planned to immediately integrate Champion's employees into the Sirius organization, which includes a Cloud Center of Excellence (CCoE) model that brings together cloud solutions practices with consulting and services that include migration, data analytics, security and compliance.

Champion President and CEO Chris Pyle called Sirius a great fit for Champion's employees and clients, and added that he was excited about new investments in MessageOps and Inscape.

"We will also have the ability to invest more resources into the ongoing development of our IP, enabling us to deliver leading-edge cloud monitoring, management and security tools," Pyle said.

Posted by Scott Bekker on December 02, 2020 at 9:45 AM0 comments


Nadella Puts Microsoft Teams at Center of Earnings Call

Microsoft released its first quarter earnings on Tuesday afternoon, reporting revenues of $37.2 billion and earnings of $1.82 per share. The company beat analyst expectations on the back of strong cloud growth.

However, the centerpiece of the Satya Nadella-led earnings call on Tuesday evening was the Microsoft Teams collaboration platform, which keeps surging to new highs due to COVID-19-related remote work.

Microsoft Teams now has 115 million daily active users (DAU), Nadella told analysts during the call. That's a 475 percent increase over the 20 million DAU that Microsoft reported for Teams in November 2019, before a huge portion of the global workforce started logging in from home offices rather than their companies' office space. It's also a 53 percent jump over the last number Microsoft released -- 75 million DAU in April.

Unlike some metrics that Microsoft reports consistently, the Teams DAU figure is revealed sporadically and only when the company has a milestone that fits a positive growth story. For example, Microsoft reported DAU in March of 44 million, and then a month later released the 75 million DAU figure for April to show the 70 percent growth of users in about a month of global work-from-home decisions. Since then, growth has slowed and the company went quiet for six months.

"We are seeing increased usage intensity as people communicate, collaborate and co-author content across work, life and learning," Nadella said before tossing out a few more momentum metrics:

  • Referencing Teams as a part of the larger Microsoft 365 suite, Microsoft reported that Microsoft 365 users generated more than 30 billion collaboration minutes in a single day in the quarter.
  • Nearly 270,000 educational institutions are using Teams.
  • A large deal with PepsiCo will include a rollout of Microsoft 365 and Teams to 270,000 employees worldwide.

During a question portion of the call with analysts, Nadella answered an inquiry about the Teams opportunity by describing how he views Teams. "Teams is very exciting to us because, unlike anything else that we have done at the application layer, it's literally like a shell. It has a platform effect because meetings, chat, collaboration, as well as business process applications, integrate into Teams so that scaffolding richness makes it a very robust platform," Nadella said.

Nadella also highlighted for analysts the pace at which Microsoft is adding new features to Teams. He claimed more than 100 new capabilities in the last six months, and specifically called out breakout rooms, meeting recaps, shift scheduling and events with up to 20,000 participants.

During a separate question about artificial intelligence, he called out how heavily Teams is drawing upon Microsoft's AI research and development. "Every Teams session is full of AI because of the transcription services, the speech recognition services and so on that it incorporates," Nadella said.

Other positives in the quarter for Microsoft were Azure growth of 48 percent and 20 percent growth of the larger Intelligence Cloud segment generally, which includes Azure. Negatives included a 5 percent drop in licensing revenues from Windows OEMs and a 10 percent drop in search advertising business compared to the year-ago quarter. Contributing to the Windows decline is a comparable against a quarter that benefited from the end of support for Windows 7, but it also comes in a quarter that Canalys, Gartner and IDC all reported as a boom time for PCs.

Microsoft stock rose by about 1 percent in after-hours trading on the earnings news but moved 2 percent lower after Microsoft shared second-quarter guidance that was more conservative than analysts expected.

Posted by Scott Bekker on October 28, 2020 at 10:14 AM0 comments


Pandemic Translates to Booming Quarter for PC Sales

The PC market boomed in the third quarter, with pandemic-related buying producing growth rates at levels not seen for a decade.

Market researchers from IDC, Gartner and Canalys all released their growth estimates this week. The three firms told similar stories -- heavy purchasing on the consumer side, robust activity around Chromebooks and education, and very strong growth in the United States.

For the third quarter, the growth reports were 12.7 percent from Canalys, 14.6 percent from IDC and 9 percent from Gartner. (Gartner's headline number was lower, 3.6 percent, but that figure didn't include Chromebooks.)

[Click on image for larger view.] Source: Canalys

In fact, the numbers could have been better if it weren't for component shortages, according to Jitesh Ubrani, research manager for IDC's Mobile Device Trackers.

"Consumer demand and institutional demand approached record levels in some cases. Gaming, Chromebooks, and in some cases cellular-enabled notebooks were all bright spots during the quarter. Had the market not been hampered by component shortages, notebook shipments would have soared even higher during the third quarter as market appetite was yet unsatiated," Ubrani said in a statement.

Gartner research director Mikako Kitagawa suggests that it's time to start thinking about the consumer PC market differently, and in a way that could point to strong future growth: "The market is no longer being measured in the number of PCs per household; rather, the dynamics have shifted to account for one PC per person."

The business PC market was a different, not as strong, story in the third quarter, illustrated by Dell's performance. Among major PC vendors, Dell was the only one to decline, seeing shipments fall by a little less than 1 percent for the quarter, according to IDC's numbers. By comparison, Lenovo and HP were both up about 11 percent, Apple was up 39 percent and Acer was up 29 percent.

[Click on image for larger view.] Source: IDC

Gartner's news release on the numbers noted that Dell broke a streak of 17 consecutive quarters of year-over-year growth. "Dell's decline is one indicator of cautious spending by business buyers as a reaction to the current weak economies in most developed nations," the market research firm said in its statement.

Canalys Research Director Rushabh Doshi picked up on a nuance of the remote work reality that complicates the separation of the business and consumer PC markets.

"As the line between work and home lives is increasingly blurred, it becomes important to position devices towards a wide array of use cases, with a focus on mobility, connectivity, battery life, and display and audio quality," Doshi said in a statement. "Differentiation in product portfolios to capture key segments such as education and mainstream gaming will also provide pockets of growth. And beyond the PC itself, there will be an increased need for collaboration accessories, new services, subscription packages and a strong focus on endpoint security. These trends will most benefit vendors who provide holistic solutions that enable their customers to make structural changes to their operations."

In the near term, Doshi said the consumer-driven holiday season should make for a strong Q4 for PCs. But the Canalys analyst was bullish for the longer term, as well.

"The lasting effects of this pandemic on the way people work, learn and collaborate will create significant opportunities for PC vendors in the coming years," Doshi said.

Posted by Scott Bekker on October 14, 2020 at 9:55 AM0 comments


Rubber, Meet Road: Products Hitting GA at (or Around) Microsoft Ignite

Microsoft declared about two dozen products ready for general availability (GA) -- and thus production deployment -- this week during the Microsoft Ignite conference. The products ranged from elements of the high-profile Project Cortex to Azure SQL for edge deployments to major and minor components of Microsoft's three clouds.

A virtual event this year, Ignite kicked off on Tuesday morning with a keynote from CEO Satya Nadella and was scheduled to run through Thursday. Microsoft typically treats Ignite as a major launchpad for IT pro- and IT management-focused products and services across its enterprise portfolio with some developer, education and government tools and products thrown into the mix.

Delivering 'Content Management Superpowers' with SharePoint Syntex
One of the highest-profile announcements involved Project Cortex, a set of new services in Microsoft 365 involving the use of artificial intelligence. While Microsoft had said at Build in May that Project Cortex would be generally available in early summer, the project has been expanded with a first element now promised for purchase for Microsoft 365 commercial customers on Oct. 1. That Project Cortex-based product is called SharePoint Syntex.

What SharePoint Syntex is supposed to do is use AI to "automate the capture, ingestion and categorization of content to accelerate processes, improve compliance, and facilitate knowledge discovery and reuse," according to Microsoft documentation. Colorfully, the documentation describes SharePoint Syntex as giving SharePoint "content management superpowers."

Bringing SQL to IoT
Microsoft is pushing the SQL data engine to the edge with general availability of Azure SQL Edge. Designed for Internet of Things (IoT) gateways and edge devices, Azure SQL Edge is built on the same code base as Microsoft SQL Server and runs in a container of less than 500MB.

A Cloud for Health Care
Certain industries have specific regulatory requirements or privacy concerns that make the general-purpose public cloud a harder sell. With an eye to serving the specific needs of vertical industries, Microsoft plans to roll out several industry-specific clouds, and the company is starting with health care.

The Microsoft Cloud for Healthcare has been in public preview since May, but Microsoft now is promising a firm date for general availability within the month -- Oct. 20. At a high level, the cloud is architected to comply with regulatory frameworks like GDPR, HIPAA and HITRUST and includes capabilities from Microsoft Azure, Microsoft 365, Microsoft Dynamics 365 and the Microsoft Power Platform, as well as partner solutions.

Upgrading the Compliance Manager
Recognizing the complexity and volume of compliance considerations that IT organizations of all kinds must deal with, Microsoft is making generally available immediately a new Compliance Manager for Microsoft 365 customers.

The new Compliance Manager is a superset of its existing Compliance Manager and the Compliance Score. Microsoft's design goal for Compliance Manager is to turn complex regulatory requirements into specific controls and help organizations measure their progress through scores.

Putting Windows and Linux Servers Under Azure Arc
Customers managing Azure services use Azure Resource Manager. For those who like the model and want to use similar tools and capabilities to manage more of their infrastructure, there's Azure Arc, which extends the model to other clouds, Kubernetes clusters and on-premises servers.

As of Ignite, Microsoft made Azure Arc-enabled servers generally available for Windows and Linux servers. From a single control plane, customers can now manage their servers with Azure Policy and use Azure Security Center, Azure Monitor or Update Management on them.

Dynamics 365 Project Operations Goes Live
Microsoft spun off a new solution out of Dynamics 365, this time for services businesses. Now generally available is Dynamics 365 Project Operations. The solution is designed to integrate sales, project management and accounting teams and cover parts of the process from quotes to invoices to business intelligence.

Microsoft Teams Activity
All the remote work going on in the world has Microsoft Teams as a critical product for Microsoft in the near-term and potentially in the long-term, as well. Microsoft has a few big initiatives going on here. One of them is a new category of all-in-one dedicated Teams devices. In Microsoft videos, the devices are small desktop devices with screens that work as a complement to a PC and allow a user to do things like launch a meeting and see other participants on the device while controlling a screen share for the meeting from the PC.

While not quite ready as of Ignite, Microsoft now says to expect general availability for the devices in the "coming weeks." Initial hardware partners include Lenovo and Yealink. For the record, Microsoft is also working with AudioCodes, Poly and Yealink on less expensive Teams phones for common areas and has some Teams-related USB peripherals in the works.

Also for Teams, Microsoft announced that live captions with speaker attribution is now generally available. Also, the Teams displays will include Cortana voice assistance. The functionality is generally available but depends on delivery of the devices. Meanwhile, Cortana's Amazon peer Alexa also had GA news at Ignite: The Alexa channel is now generally available within the Azure Bot Service.

What's Your Productivity Score?
The novel coronavirus pandemic has also initiated a push by organizations to figure out how to track and improve worker productivity from remote locations. Microsoft is taking a crack at it with the Microsoft Productivity Score, which is partly about those questions and partly about monitoring how much employees and organizations are taking advantage of capabilities in Microsoft 365. While, again, not generally available immediately, Microsoft committed at Ignite to an end-of-October GA for Productivity Score. The score is broken into Employee Experience and Technology Experience.

Other GA Services and Products
Highlights of the other generally available services and products in Microsoft's Ignite announcements included:

  • Additional features for Azure Cognitive Search called Private Endpoints and Managed Identities.
  • An Anomaly Detector in Azure Cognitive Services, Metric Advisor.
  • A new Designer capability for Azure Machine Learning featuring drag-and-drop modules for things such as data prep, model training and evaluation.
  • New Azure Migrate features for datacenter-to-cloud migrations.
  • A next generation version of Azure VMware Solution (AVS) in US East, US West, West Europe and Australia.
  • Two new Azure Stack Edge appliances, including one designed to be carried in a backpack.
  • Azure Virtual Machines featuring Intel Cascade Lake processors.
  • Azure Disk Storage updates, including Azure Private Link integration and support for 512E on Azure Ultra Disks.
  • ServiceNow integration with Azure AD.
  • Microsoft Edge DevTools extension for Visual Studio Code.
  • An Azure Policy add-on for Azure Kubernetes Service (AKS).

Posted by Scott Bekker on September 22, 2020 at 9:42 AM0 comments


Microsoft Launches WVD Advanced Specialization

Microsoft on Tuesday launched an advanced specialization for Windows Virtual Desktop (WVD), giving partners access to a new badge that highlights expertise in the newly essential area of supporting remote workers.

Advanced specializations layer on top of competencies within the Microsoft Partner Network (MPN) as a way for partners to demonstrate Microsoft-sanctioned certification of their specialized skills.

Competencies are a baseline element of the MPN and Microsoft partners have used them for decades as a way to show expertise. There are currently about 19 competencies in the MPN.

Advanced specializations are newer and can only be attained after a partner already has a prerequisite competency. Microsoft currently lists 11 of the specializations, including Microsoft Windows Virtual Desktop.

To attain the new Microsoft Windows Virtual Desktop advanced specialization, a partner must first have a gold competency in Cloud Platform. The partner must also clear a revenue bar, document that five individuals have earned specific certifications and pass a third-party audit, which costs $2,000.

"Our newest advanced specialization will showcase your experience with implementing Windows Virtual Desktop, including deploying, optimizing, and securing virtual desktop infrastructure on Azure. This will ensure you’re prepared to meet the needs of your customers as they continue to evolve their remote work approach," said Dan Truax, general manager of Partner Digital Experiences and Programs in Microsoft One Commercial Partner, in a blog post announcing the advanced specialization.

Earlier this year, Microsoft released some Microsoft Teams-related advanced specializations, also related to the shift to remote work caused by the COVID-19 pandemic.

WVD is Microsoft's virtual desktop infrastructure service for remote access to Windows 7 or Windows 10 desktops and applications. The virtual desktops are hosted in Microsoft datacenters.

Posted by Scott Bekker on September 15, 2020 at 12:56 PM0 comments


Quest Buys Binary Tree

Quest Software this week added to its already full quiver of Microsoft modernization tools with the acquisition of Binary Tree.

While Quest already had capabilities for migrating to Office 365 within its broad existing toolset, Binary Tree brings sophisticated tooling for second-generation cloud migrations -- handling the complex requirements of enterprise cloud-to-cloud migrations necessitated by M&A and other concerns in a maturing market.

Quest, based in Aliso Viejo, Calif., positioned the acquisition as combining two companies with strengths in on-premises, hybrid and cloud migrations.

"I see tremendous opportunity by uniting two market leaders, each with strong capabilities that -- when brought together -- will offer best-in-breed solutions for customers modernizing their Microsoft environment. With the integration of our technologies and vast experience with their Power365 Active Directory and Power365 Tenant-to-Tenant solutions we are able to deliver more value faster to our customers and partners which is increasingly important as the market and business continues to evolve," said Patrick Nichols, who took over as CEO of Quest in April, in a statement about the deal.

While Binary Tree has focused lately on Office 365-to-Office 365 migrations and Active Directory migration work, it's been around since 1993 and has long experience and continuing business in Lotus Domino/Notes and other legacy migrations.

Quest, meanwhile, boasts dozens of products and its major brands include KACE, Foglight, Metalogix and One Identity. The company's products cover data protection, database management, identity and access management,  Microsoft platform management, performance monitoring and unified endpoint management.

In the statement announcing the deal, Quest committed to continue selling and supporting Kendall Park, N.J.-based Binary Tree's products "as the company works through the integration."

Partners of both companies can expect to see upsell opportunities where the two organizations' products are complementary, with an initial emphasis on Quest Change Auditor and Quest on Demand.

Posted by Scott Bekker on September 03, 2020 at 11:40 AM0 comments


It's a Wide-Open SaaS-y World in the Public Cloud, For Now

The public cloud is a predominantly Software-as-a-Service (SaaS) market, with the Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) elements gaining steadily in SaaS' rear view.

Oh, and that SaaS market is still wide-open, even as the IaaS/PaaS sector becomes more consolidated by the year.

Those are the main takeaways of IDC's useful snapshot of public cloud revenues, released Tuesday. The numbers come in a 2019 after-action report showing combined public cloud revenues of $233.4 billion, SaaS revenues of $148.5 billion, IaaS revenues of $49 billion and PaaS revenues of $35.9 billion. Significantly, all of this data predates the effects of the global pandemic.

Specifically, SaaS makes up nearly two-thirds of the public cloud market (64 percent). The sector's growth is still half that of IaaS and PaaS, making it a long slog for those two to catch up. SaaS had 2019 year-over-year growth of 20 percent, while IaaS and PaaS were both near 39 percent. Meanwhile, SaaS application growth has been slowing slightly in recent years, although the current crisis could reverse that trend.

IDC has started looking broadly at the public cloud market as two main buckets, rather than three. There's SaaS on the one side and IaaS and PaaS together on the other side. The market research company explains the grouping as reflecting the way end customers consume the services when deploying applications on the public cloud.

When it comes to market consolidation, those two buckets tell very different stories.

[Click on image for larger view.] Source: IDC

While SaaS is more mature from a revenue and growth perspective, the market is completely disorganized, owing partly to the nearly infinite variety of applications involved. Market leader Salesforce.com commands only 7.8 percent of total revenues. Microsoft, with its many SaaS offerings headlined by Office 365 and Dynamics 365, is second with 7.4 percent. After a top five rounded out by SAP, Oracle and Google, the "rest of market category" accounted for a whopping 74 percent of revenues in 2019.

On the IaaS + PaaS side, it's a highly consolidated market, with Amazon in the lead at 34 percent, Microsoft next at 18 percentand Google, Alibaba Group and IBM all in a tight market share range between 4 percent and 5 percent. The entire rest of the market in 2019 took 35 percent of the revenue, IDC said.

Still, IDC, which spends much of its time characterizing market sectors, viewed the rest of the IaaS/PaaS market as healthy. AWS and Microsoft have more than half of global revenues, but the firm sees a vibrant market of companies with what it describes as targeted use case-specific PaaS offerings.

IDC cautioned that next year's snapshot of the 2020 public cloud may show very different results from the trends suggested by the 2019 numbers, especially because of an acceleration in enterprises' shift to the cloud.

Posted by Scott Bekker on August 18, 2020 at 11:26 AM0 comments


Microsoft Earnings Up 13% in Q4

Microsoft revenues were up 13% in the fourth quarter as the company continued its growth amid the pandemic and associated economic headwinds.

Revenues for the quarter, ended June 30, hit $38 billion. Diluted earnings per share decreased 15%, to $1.46, in part because the company took a $450 million charge in the quarter for its late-June move to permanently shutter the Microsoft Store physical locations.

Microsoft's stock price was down about 3% in after-hours trading, even though both the revenues and earnings announced Wednesday beat analyst expectations.

"Our commercial cloud surpassed $50 billion in annual revenue for the first time this year. And this quarter our Commercial bookings were better than expected, growing 12% year-over-year," Microsoft CFO Amy Hood said in a statement.

For the full year, revenue grew 14% to $143 billion and diluted earnings per share were also up 14% to $5.76.

Despite the cloud growth, investors may have been concerned about the sequential drop in Azure growth. While Microsoft does not break out Azure revenues, the company reports percentage growth. In the third quarter, Azure growth had been 59%, while the fourth quarter brought 47% growth.

By major business units for the quarter, Productivity and Business Process was up 6% to $11.8 billion, Intelligent Cloud was up 17% to $13.4 billion and More Personal Computing was up 14% to $12.9 billion.

Other notable growth trends in Microsoft's business-oriented product lines included:

  • A 19% jump in Office 365 Commercial revenues
  • Growth of 38% for Dynamics 365 revenue
  • An increase of 19% in server products and cloud services revenue, which included the 47% Azure revenue growth
  • Growth of 7% in Windows OEM revenue
  • A 28% hike in Surface revenues

Posted by Scott Bekker on July 22, 2020 at 3:31 PM0 comments


Inspire: Nadella Urges Partners To Embrace 'Tech Intensity'

Satya Nadella has been shopping around the term "tech intensity" for a year-and-a-half as a sort of refinement of, or at least a related concept to, "digital transformation."

But at the Microsoft Inspire partner conference on Wednesday, the Microsoft CEO elevated "tech intensity" to an organizing principle that can help companies both weather the current historic global challenges and perhaps grow after those challenges have started to recede.

"While the pandemic has taught us that no business is 100 percent resilient, those fortified by digital technology are more resilient, more capable of transforming when faced with these secular structural changes in the marketplace. We call this tech intensity, and every organization and every industry will increasingly need to embrace it in order to be successful and grow," Nadella said during his keynote at the two-day virtual event that wrapped up Wednesday (emphasis added).

Nadella said Microsoft is working with the Harvard Business School to develop frameworks and scorecards for companies in various verticals related to tech intensity.

"Tech intensity inside of an organization creates new operating architecture, breaking up the traditional silos to expose the technology and data and business process workflows inside the company in a very modular platform. This enables citizen developers, in collaboration with their digital and IT teams, to respond to these changes in the marketplace, this new opportunity, with agility. Our collective opportunity is to channel this intelligent cloud and the intelligent edge era into tech intensity for every business on the planet," Nadella said.

In the lead-up to his tech intensity definition, Nadella worked through a several verticals where customers and partners are exhibiting tech intensity.

They included:

  • Health care and the surge in telehealth: "More than half of the primary care visits at some of the major health care systems are now being conducted virtually, and providers are increasingly relying on new capabilities like these AI-assisted bots to ensure patients get the information they need whenever and wherever they need it."
  • E-commerce: "[It] has been pulled forward multiple years, according to one analyst. Offline retailers are embracing new models like contactless shopping, curbside pickup."
  • Financial tech: "People [are putting] aside their physical wallets in favor of digital ones, and banks are harnessing the power of AI to manage risk."
  • Manufacturing: "Every category [is] moving to automate everywhere, simulate anything and quickly advancing from early experiments with IoT and AI to rapid adoption at scale, creating digital twins and using mixed reality for remote assistance and field service."
[Click on image for larger view.]

Fitting the effort to Microsoft's product set, Nadella emphasized a hierarchy with Azure at the foundation, GitHub and Power Platform in a middle development layer, and Microsoft 365 and Dynamics 365 on top. Enhancing the three clouds and development tools were Microsoft's security, compliance and identity tools.

Posted by Scott Bekker on July 22, 2020 at 1:34 PM0 comments