Microsoft Cloud Strength And Hardware Progress Drive Record 1Q Revenue

Discussion in 'HardForum Tech News' started by HardOCP News, Oct 24, 2014.

  1. HardOCP News

    HardOCP News [H] News

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    Microsoft Corp. today announced revenue of $23.20 billion for the quarter ended September 30, 2014. Gross margin, operating income and diluted earnings per share (“EPS”) for the quarter were $14.93 billion, $5.84 billion and $0.54 per share, respectively. These financial results include $1.14 billion of integration and restructuring expenses, or an $0.11 per share negative impact, related to both Microsoft’s restructuring plan announced in July 2014 and the ongoing integration of the Nokia Devices and Services (“NDS”) business.
     
  2. JeffDC

    JeffDC Gawd

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    Almost as embarrassing as oil monopoly "revenues" imo. Unrestrained capitalism and greed on a scale never seen before in human history.

    As long as the company is allowed to continue their existing sales and support policies (e.g. dictating specific Windows versions on new PCs, non-transferability of OEM licenses etc) they remain entirely separate from the free market and masters of their own revenue destiny.
     
  3. Shmee

    Shmee [H]ard|Gawd

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    Windows isn't even number 1 in their revenue stream anymore. OEM Licensing is way down. They get all their money from enterprise software and the cloud now. Though their hardware business appears to be growing well. They almost sold a billion dollars worth of Surfaces.
     
  4. heatlesssun

    heatlesssun [H]ard as it Gets

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    You talk a lot about these two things but you've never pointed out exactly where the issue is with them beyond your dislike of them. How do you tell a company that they must sell a specific model of product In-perpetuity? And an number of Windows 8.x versions these days are free, so the transferring of the OS to another device from an economic perspective is meaningless.
     
  5. CreepyUncleGoogle

    CreepyUncleGoogle [H]ardness Supreme

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    I heard that banks sell the same product perpetually.
     
  6. heatlesssun

    heatlesssun [H]ard as it Gets

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    You read and heard wrong.
     
  7. Kongar

    Kongar Gawd

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    Can someone explain how they are making money off "the cloud"? Does this mean subscription based services like office 365 and space on skydrive? Web hosting services? Hard for me to imagine what rakes in billions in that category.
     
  8. CreepyUncleGoogle

    CreepyUncleGoogle [H]ardness Supreme

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    *gasp* Banks aren't offering personal checking accounts anymore! OMG! Batten down the hatches! Drop the portcullis! Boil a turkey sammich! And someone change the combination on my luggage!
     
  9. heatlesssun

    heatlesssun [H]ard as it Gets

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    Just about all of Microsoft's proprietary server and front end productivity tools can be hosted in Azure and offered via a subscription model which is essentially the things you listed. But Azure can also host other stacks. A lot of Azure hosting is based on Linux and open source products.

    It's easy to criticize Microsoft for its bumbling in the mobile client space but what they're doing with Azure and their cloud offerings overall is top notch, first class stuff. We'll never use Azure for anything much at a big bank, but I've played with Azure on my own for a while now, it's just amazing how much you can stand up quickly without any onsite hardware or software and how easy it easy to migrate certain things over. I do a lot of work with SQL Server and have been looking particularly in that area.
     
  10. heatlesssun

    heatlesssun [H]ard as it Gets

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    I said the same "specific model of product in-perpetuity". And I never said that a company couldn't offer the same model of product forever, there's just no way to force that plus as much as some mike like XP or the Model T or free checking, those things are by gone eras.
     
  11. CreepyUncleGoogle

    CreepyUncleGoogle [H]ardness Supreme

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    http://en.wikipedia.org/wiki/Corn_flakes

    [​IMG]
     
  12. heatlesssun

    heatlesssun [H]ard as it Gets

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    And of course nothing has changed in the formulation of corn flakes in the last century. /s

    Anywho, Dunk History did an interesting skit about the history of Kellogg's.
     
  13. CreepyUncleGoogle

    CreepyUncleGoogle [H]ardness Supreme

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    They're flakes made of corn...since the name hasn't been changed to rye flakes, I'm pretty sure it's still made from corn.
     
  14. heatlesssun

    heatlesssun [H]ard as it Gets

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    And all versions of Windows are made of bytes.;)
     
  15. CreepyUncleGoogle

    CreepyUncleGoogle [H]ardness Supreme

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    I'm glad that's settled. I was gonna have to talk about the lumber industry selling wood since pretty much the dawn of time next. :p
     
  16. DPI

    DPI Nitpick Police

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  17. Technikal

    Technikal Gawd

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  18. heatlesssun

    heatlesssun [H]ard as it Gets

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    Gross margin = revenue - cost of revenue, so you don't need to subtract cost of revenue again. And you're conflating the meaning of cost of revenue. Cost of revenue would include the costs of manufacturing a product but not advertising. Marketing, R&D etc. are operating expenses and are subtracted from the gross margin which is the operating income. Taxes are then subtracted from operating income to produce net income.

    I know you'll say defending Microsoft but I've been in the financial industry and have developed a number of apps for financial reporting so this is the kind of error I notice pretty easily.
     
  19. JeffDC

    JeffDC Gawd

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  20. Shmee

    Shmee [H]ard|Gawd

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  21. heatlesssun

    heatlesssun [H]ard as it Gets

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  22. JeffDC

    JeffDC Gawd

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    There's no reason MS would need or want to release their flagship product to the public domain, they can choose any of their older internet-capable OS's (7, even XP). Once in the public domain, Windows can be made truly secure. Until that time it's a constant cat and mouse game (the record speaks for itself), with the mouse always being at least two and usually three or more steps ahead of the cat. Perpetually. Again there's no need to defend that claim because it's established history.

    I'm not looking for a specific answer to this question, but what do you think would happen if MS released Win7 or XP to the public domain?
     
  23. heatlesssun

    heatlesssun [H]ard as it Gets

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    So there are no instances of devastating attacks on public domain software? Haven't there been a few of those lately? It's a cat a mouse game because there's always someone smarter and more resourceful out there that sees things tons of other "eyeballs" don't. With something like Windows that's widely deployed and gives users so much freedom to do whatever, how is anything like that ever truly secure?

    As for releasing Windows source code into the public domain, I definitely see a lot of people trying to make a much profit from it however they can, from new malware to clones of Windows. Would it help with security? Some, but nothing that would radically make it more or less secure. Top level hackers don't really need source code to attack bad code, though code would help. Of course Windows would be a very special case. There'd probably be as many eyeballs on a public release of Windows source code in one day as that has ever looked at Linux source.

    But again, I don't think that many Linux folks would want that. What would even be the point desktop Linux with a open source version of Linux? Microsoft has it's agenda. And there's plenty of folks that don't like Microsoft that would never want Microsoft's agenda to become theirs.
     
  24. rudy

    rudy [H]ardForum Junkie

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    Have you seen farmers, lol how many years in a row are they going to sell us the same corn.
     
  25. CreepyUncleGoogle

    CreepyUncleGoogle [H]ardness Supreme

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    Microsoft can keep old versions of Windows as closed source, thanks. Linux is good enough to do anything Windows can (even gaming is pretty much there now) so I don't think anything would be gained by it.

    I know! I keep watching their livestream media events hoping they'll announce a new model this year, but it's always the same stuff. Everyone would love to see an updated cob with modern features, but we just keep getting the same one they announced last year. And the fancorns are awful because they just eat that stuff up and buy more. It's sad, really, the state that industry is in for perpetually selling the same products.