Microsoft: Cloud, Surface Rise While Profits Fall - InformationWeek

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1/27/2015
12:06 PM
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Microsoft: Cloud, Surface Rise While Profits Fall

Microsoft's latest earnings report reflects "momentum through transition" as cloud products and its Surface tablet strengthen, while profit drops.

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David Wagner
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David Wagner,
User Rank: Strategist
1/28/2015 | 1:39:43 PM
Re: Surface
I'm not sure. It is interesting. I remember just a few years ago when a lot of companies were heading towards divesting of physical pobjects for "higher profit margin" things like consulting and software. IBM is the prime example. And, in a way, they left the field wide open for Apple. Now people who make things are hot. But there is a problem with making things-- you run hot and cold on your products. Maybe Microsfot's mized portfolio is the best idea. But they sure seem to be heading to a business model where software makes them less money for them. 
Kelly22
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Kelly22,
User Rank: Strategist
1/28/2015 | 12:59:04 PM
Re: Surface
True, based on its recent announcements - I'm looking at you, HoloLens - it looks like Microsoft is trying to boost its status in both software and hardware. Even though it's a software company, Microsoft's line of physical products is strong. Surface did really well last quarter, and plenty of smartphones sold. Wonder if it can keep up the momentum.
David Wagner
50%
50%
David Wagner,
User Rank: Strategist
1/27/2015 | 3:16:12 PM
Surface
Nice to see Surface doing well. I like the product. I can't help but note that Microsoft is a software company that is increasingly making its revenue from have some physical thing involved. Cloud revenue requires them to own a physical site with physical servers. Surface is a thing. XBox is a thing. There's still plenty of software in the portfolio, but I find it interesting they are getting involved increasingly in the physical world.
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