Microsoft reveals cloud growth but $3.2bn net loss in latest financial results

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Microsoft has reported a $3.2 billion net loss for the second quarter of 2015, the worst in the company’s history, but backed it up alongside continued strong cloud growth.

It was always going to look nasty. Following the $7.5bn writedown of its Nokia offshoot, the analysts were prepared to sink their teeth into the Redmond giant as its latest financial results came through. Yet Microsoft CEO Satya Nadella was unrepentant, arguing the cloud and mobile gains were pushing the...

By James Bourne, 22 July 2015, 0 comments. Categories: Collaboration, Economy, Enterprise, Microsoft, Software.

SAP’s Q215 financial results: Strong cloud growth alongside profit warnings

Picture credit: SAP

It’s that time of year again. Companies are issuing their latest quarterly financial figures, and SAP’s Q215 numbers see continued growth in cloud services, but overall profits remaining relatively stagnant.

Cloud subscriptions and support for the German software giant stood at €552 million for the second quarter of 2015, a more than 100% change from the previous year. Other software licenses and support saw a 13% change at €3.51 billion. Total revenue hit...

By James Bourne, 21 July 2015, 0 comments. Categories: Economy, SaaS , SAP, Software.

The state of the cloud in 2015: “Bullish” VC firm predicts tipping point

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Bessemer Venture Partners (BVP), a venture capital firm which has been investing in cloud computing for almost 20 years, has released a bullish prediction on cloud trends in the coming years.

Software as a service (SaaS) is approaching 30% of total application spend, compound annual growth rate hitting 17.6% between 2013 and 2018. On premise, by contrast, is at 2.8%. BVP also argues the ‘tipping point’ of cloud CRM will hit in 2016; by 2018, the VC firm expects cloud CRM to...

By James Bourne, 19 June 2015, 0 comments. Categories: Economy, IaaS, M&A, SaaS , Salesforce.

The Box advantage: Growth, predictability and competitiveness

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Although Box’s stock value has had its ups and downs since its IPO in January, going public sent an important signal to investors. Aaron Levie has demonstrated that a subscription-based service is now the only viable business model in the technology industry today.

When Salesforce debuted in 2004, there was very little market awareness of recurring revenue-based business models. They were mostly associated with print media and telecoms. Eight years later, Workday’s successful...

By Tien Tzuo, 31 March 2015, 0 comments. Categories: Economy, SaaS , Software, Storage.

Research argues hidden costs contribute to a ‘cloud hangover’ for businesses

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It’s the morning after the night before. You’ve had a bit too much, your head’s pounding, and you’re frantically searching your brain for anything you might have said or did that you’ll be paying for later.

We’ve all been there. Yet according to new research from Sungard Availability Services, it’s a similar effect at work when the IT department buys cloud solutions. 87% of the 150 UK-based senior IT decision makers polled say they have...

By James Bourne, 30 March 2015, 0 comments. Categories: Adoption, Data & Analytics, Data Management, Economy, SLA, Vendors.

Oracle CTO Ellison slams Salesforce in cloud financial results discussion

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After 27 years at the top, it remains a slight culture shock to note Larry Ellison as Oracle’s chief technical officer. But despite this he’s still stealing the headlines, by telling analysts in an earnings call his belief that Oracle will sell more new SaaS and PaaS business than Salesforce in 2015.

As reported by Seeking Alpha, Ellison told...

By James Bourne, 20 March 2015, 0 comments. Categories: Economy, PaaS, Platform, SaaS , Salesforce, Software.

Rackspace posts solid financial results, continues to bang drum for managed cloud services

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Rackspace has announced solid fourth quarter financial results, with adjusted EBIDTA at $165m, up 25% year on year, and net revenue up 16.4% from Q413.

Net income for the fourth quarter was $36.9m, up 5.1% year on year, while return on capital in the quarter went up to 15.5% from 9.6% in 2013.

The company’s primary USP in 2014 was its Managed Cloud portfolio,

By James Bourne, 19 February 2015, 0 comments. Categories: Economy, Hybrid, IaaS, Infrastructure.

What can MSPs gain from linear growth and recurring revenue?

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By Bernardo Reyes

We’ve reached it, the critical stage between cloud growth and cloud maturity. And there’s no need to deny that with cloud maturity come great opportunities. Just like Uncle Ben said, right? But more seriously, as a Managed Service Provider (MSP), how can you be sure that adding the cloud to your organisation now is right? Did you at all consider the cloud as...

By Rhonda Sherwood, 05 February 2015, 0 comments. Categories: Economy, SaaS , Software, Vendors.

IBM's cloud revenue hits $7bn in 2014, but still plenty of work to do

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IBM has released its Q4 and full year financial figures for 2014, showing net income at $15.8bn down 7% year on year, revenue from continuing operations down 6%, but total cloud revenue of $7bn in 2014, up 60%.

It’s a not unexpected result given, like SAP, IBM is aiming to shift its revenues more towards the cloud as opposed to legacy on-premises software, but...

By James Bourne, 21 January 2015, 0 comments. Categories: Economy, IaaS, Infrastructure.

SAP financial figures offer few surprises, expects cloud transformation by 2018

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SAP has released its latest financial figures, and it’s to be expected; cloud subscriptions up, software subscriptions down, overall numbers ticking over, and a pledge that cloud profits will exceed software license revenues by 2018.

The company has again shifted its long term goals, with a 2017 operating profit target now of €6.3bn to €7bn, from a previous total of €7.7bn – and it’s all due to the company’s aggressive shift towards cloud.

The...

By James Bourne, 20 January 2015, 0 comments. Categories: Economy, SaaS , Software.