Posts Tagged ‘cloud’

postheadericon Cloud security policy: The questions you need to ask

Cloud services are very much what you make of them, and you need to apply at least an equivalent level of rigorousness, in terms of risk assessment, as you would with assets that are hosted on your own network.

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postheadericon Cloud services: What to consider when migrating your infrastructure

Most companies have switched the majority of their services and information over to the cloud. There are many reasons for this, ranging from cost to practicalities.

The post Cloud services: What to consider when migrating your infrastructure appeared first on WeLiveSecurity


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postheadericon Flipkart and Microsoft forge cloud partnership to expand e-commerce in India

BANGALORE, India — Feb. 20, 2017 — Microsoft Corp. and Flipkart, India’s leading marketplace, on Monday announced a strategic partnership to provide consumers in India with the best online shopping service. As a first step in the broad collaboration between the two companies, Flipkart will adopt Microsoft Azure as its exclusive public cloud platform. Microsoft CEO Satya Nadella and Flipkart Group CEO and co-founder Binny Bansal announced the news at an event in Bangalore.

“At Microsoft, we aim to empower every Indian and every Indian organization with technology, and key to this is forging strategic partnerships with innovative companies like Flipkart,” Nadella said. “Combining Microsoft’s cloud platform and AI capabilities with Flipkart’s existing services and data assets will enable Flipkart to accelerate its digital transformation in e-commerce and deliver new customer experiences.”

“Flipkart has always been committed to its vision of transforming commerce in India through technology,” Bansal said. “Given Microsoft’s strong reputation in cloud computing, coupled with scale and reliability, this partnership allows us to leverage our combined strength and knowledge of technology, e-commerce and markets to make online shopping more relevant and enriching for customers.”

Launched in 2007, Flipkart has amassed unparalleled scale in India through customer-centric innovations that have made online shopping a seamless, accessible and affordable experience for over 100 million Indians. Its innovative disruptions like Cash on Delivery, No Cost EMI, Product Exchange, easy returns, same-day delivery and instant refunds have paved the way for the e-commerce market in India.

Starting with computing infrastructure, Microsoft Azure will ultimately add a layer of advanced cloud technologies and analytics to Flipkart’s existing datacenters. Microsoft’s strong presence in India, along with its global scale, allows for continued growth and expansion, setting the stage for the long-term partnership.

Flipkart plans to use the artificial intelligence, machine learning and analytics capabilities in Azure, such as Cortana Intelligence Suite and Power BI, to optimize its data for innovative merchandising, advertising, marketing and customer service. With powerful insights about its business and new, intelligent services, Flipkart can deliver increasingly relevant and personalized experiences to its customers.

About Flipkart

Flipkart is India’s largest e-commerce marketplace with a registered customer base of over 100 million. Flipkart offers more than 80 million products across 80+ categories including Smart Phones, Books, Media, Consumer Electronics, Furniture, Fashion and Lifestyle.

Launched in October 2007, Flipkart is known for its path-breaking services like Cash on Delivery, experience zones and a 10-day replacement policy. Flipkart was the pioneer in offering services like In-a-Day Guarantee (50 cities) and Same-Day-Guarantee (13 cities) at scale. With over 100,000 registered sellers, Flipkart has redefined the way brands and MSME’s do business online.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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postheadericon Microsoft Cloud strength highlights second quarter results

REDMOND, Wash. — January 26, 2017 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2016:

  • Revenue was $ 24.1 billion GAAP, and $ 26.1 billion non-GAAP
  • Operating income was $ 6.2 billion GAAP, and $ 8.2 billion non-GAAP
  • Net income was $ 5.2 billion GAAP, and $ 6.5 billion non-GAAP
  • Diluted earnings per share was $ 0.66 GAAP, and $ 0.83 non-GAAP

Microsoft completed the acquisition of LinkedIn Corporation (“LinkedIn”) on December 8, 2016. Financial results from the acquired business are reported in the Productivity and Business Processes segment. For the second quarter of fiscal year 2017, the results of LinkedIn, including amortization of acquired intangible assets, contributed revenue, operating income, net income, and diluted earnings per share of $ 228 million, $ (201) million, $ (100) million, and $ (0.01), respectively.

“Our customers are seeing greater value and opportunity as we partner with them through their digital transformation,” said Satya Nadella, chief executive officer at Microsoft. “Accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud.”

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP financial results. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

Three Months Ended December 31,
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Reported (GAAP) $ 23,796 $ 6,026 $ 5,018 $ 0.62
Net Impact from Windows 10 Revenue Deferrals 1,710 1,710 1,128 0.14
2015 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $ 25,506 $ 7,736 $ 6,146 $ 0.76
2016 As Reported (GAAP) $ 24,090 $ 6,177 $ 5,200 $ 0.66
Net Impact from Windows 10 Revenue Deferrals 1,976 1,976 1,315 0.17
2016 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $ 26,066 $ 8,153 $ 6,515 $ 0.83
Percentage Change Y/Y (GAAP) 1% 3% 4% 6%
Percentage Change Y/Y (non-GAAP) 2% 5% 6% 9%
Percentage Change Y/Y (non-GAAP) Constant Currency 4% 8% 10% 13%

 

Microsoft is providing the following table to help investors compare results for the second quarter of fiscal year 2017 to the guidance previously provided for the quarter, which excluded LinkedIn.

Three Months Ended December 31,
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) from Table Above $ 25,506 $ 7,736 $ 6,146 $ 0.76
2016 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) from Table Above $ 26,066 $ 8,153 $ 6,515 $ 0.83
LinkedIn Results Including Amortization of Acquired Intangible Assets 228 (201) (100) (0.01)
2016 As Further Adjusted for Windows 10 Revenue Deferrals, Excluding LinkedIn Results (non-GAAP) $ 25,838 $ 8,354 $ 6,615 $ 0.84
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) 1% 8% 8% 11%
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) Constant Currency 3% 11% 12% 15%

Microsoft returned $ 6.5 billion to shareholders in the form of share repurchases and dividends in the second quarter of fiscal year 2017.

“I am pleased with our results this quarter. We see strong demand for our cloud-based services and are executing well on our long-term growth strategy,” said Amy Hood, executive vice president and chief financial officer at Microsoft.

Revenue in Productivity and Business Processes was $ 7.4 billion and increased 10% (up 12% in constant currency), with the following business highlights:

  • Office commercial products and cloud services revenue increased 5% (up 7% in constant currency) driven by Office 365 commercial revenue growth of 47% (up 49% in constant currency)
  • Office consumer products and cloud services revenue increased 22% (up 21% in constant currency) and Office 365 consumer subscribers increased to 24.9 million
  • Dynamics products and cloud services revenue increased 7% (up 9% in constant currency) driven by Dynamics 365 revenue growth
  • LinkedIn contributed revenue of $ 228 million for the period beginning on December 8, 2016

Revenue in Intelligent Cloud was $ 6.9 billion and increased 8% (up 10% in constant currency), with the following business highlights:

  • Server products and cloud services revenue increased 12% (up 14% in constant currency) driven by double-digit annuity revenue growth
  • Azure revenue increased 93% (up 95% in constant currency) with Azure compute usage more than doubling year-over-year
  • Enterprise Services revenue decreased 4% (down 2% in constant currency) with declines in custom support agreements offset by growth in Premier Support Services and consulting

Revenue in More Personal Computing was $ 11.8 billion and decreased 5% (down 4% in constant currency) driven primarily by lower phone revenue, with the following business highlights:

  • Windows OEM revenue increased 5% (up 5% in constant currency)
  • Windows commercial products and cloud services revenue increased 5% (up 6% in constant currency) driven by annuity revenue growth
  • Search advertising revenue excluding traffic acquisition costs increased 10% (up 11% in constant currency) driven by increased revenue per search and search volume
  • Gaming revenue decreased 3% (down 1% in constant currency) with lower Xbox console revenue offset by Xbox software and services revenue growth

Acquisitions and Divestitures

Microsoft completed the acquisition of LinkedIn on December 8, 2016 and the sale of its feature phone business in November 2016.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel and corporate secretary, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on January 26, 2018.

“As Adjusted” Financial Results and non-GAAP Measures

During the second quarter of fiscal years 2017 and 2016, GAAP revenue, operating income, net income, and diluted earnings per share include the net impact from Windows 10 revenue deferrals. During the second quarter of fiscal year 2017, GAAP revenue, operating income, net income, and diluted earnings per share include the results of LinkedIn. These items are defined below. In addition to these financial results reported in accordance with GAAP, Microsoft has provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these non-GAAP measures gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance.

Net Impact from Windows 10 Revenue Deferrals. With respect to our non-GAAP measures related to Windows 10 revenue, we believe these measures bridge investor information and minimize potential confusion during the brief period between the time Windows 10 revenue recognition moved from upfront to ratable, and the adoption of the new revenue standard, when Windows 10 will again be recognized predominantly upfront. The net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from adoption of the new revenue standard.

LinkedIn Results. With respect to our non-GAAP measure related to LinkedIn results, we believe this measure will help investors compare actual results for the second quarter of fiscal year 2017 to the guidance previously provided for the quarter, which excluded LinkedIn. We do not anticipate providing this non-GAAP measure in the future as our guidance will incorporate expected results for LinkedIn.

These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Non-GAAP Definitions

Net Impact from Windows 10 Revenue Deferrals. Microsoft recorded net revenue deferrals of $ 2.0 billion during the second quarter of fiscal year 2017 and net revenue deferrals of $ 1.7 billion during the second quarter of fiscal year 2016, related to Windows 10.

With the launch of Windows 10 in July 2015, Windows 10 customers receive future versions and updates at no additional charge. Under current revenue recognition accounting guidance, when standalone software is sold with future upgrade rights, revenue must be deferred over the life of the computing device on which it is installed. This is different from prior versions of Windows, which were sold without upgrade rights, where all revenue from original equipment manufacturer (“OEM”) customers was recognized at the time of billing, i.e., upfront.

When Microsoft adopts the new revenue standard, predominantly all Windows OEM revenue will be recognized at the time of billing, which is similar to the revenue recognition for prior versions of Windows. Additional information regarding the new revenue standard is provided in the “Recent Accounting Guidance Not Yet Adopted” section of Microsoft’s Form 10-Q for the quarter ended December 31, 2016 (Notes to Financial Statements). Microsoft reflects the recognition of Windows 10 revenue at the time of billing in “As Adjusted for Windows 10 Revenue Deferrals (non-GAAP)” revenue to provide comparability during the short period where Windows 10 will be recognized over the estimated life of a device, i.e., ratable, rather than at the time of billing.

LinkedIn Results. For the second quarter of fiscal year 2017, LinkedIn contributed revenue, operating income, net income, and diluted earnings per share of $ 228 million, $ (201) million, $ (100) million, and $ (0.01), respectively. Microsoft excludes the results of LinkedIn and reflects the recognition of Windows 10 revenue at the time of billing in “As Further Adjusted for Windows 10 Revenue Deferrals, Excluding LinkedIn Results (non-GAAP)” to help investors compare results for the second quarter of fiscal year 2017 to the guidance previously provided for the quarter, which excluded LinkedIn.

Constant Currency

Microsoft presents constant currency information to provide a non-GAAP framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period non-GAAP results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. The non-GAAP financial measures presented below should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. All growth comparisons relate to the corresponding period in the last fiscal year.

Financial Performance Constant Currency Reconciliation

Three Months Ended December 31,
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Reported (GAAP) $ 23,796 $ 6,026 $ 5,018 $ 0.62
2015 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $ 25,506 $ 7,736 $ 6,146 $ 0.76
2016 As Reported (GAAP) $ 24,090 $ 6,177 $ 5,200 $ 0.66
2016 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $ 26,066 $ 8,153 $ 6,515 $ 0.83
2016 As Further Adjusted for Windows 10 Revenue Deferrals, Excluding LinkedIn Results (non-GAAP) $ 25,838 $ 8,354 $ 6,615 $ 0.84
Percentage Change Y/Y (GAAP) 1% 3% 4% 6%
Percentage Change Y/Y (non-GAAP) 2% 5% 6% 9%
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) 1% 8% 8% 11%
Constant Currency Impact $ (339) $ (228) $ (260) $ (0.03)
Constant Currency Impact Excluding LinkedIn $ (333) $ (223) $ (251) $ (0.03)
Percentage Change Y/Y (non-GAAP) Constant Currency 4% 8% 10% 13%
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) Constant Currency 3% 11% 12% 15%

Segment Revenue Constant Currency Reconciliation

Three Months Ended December 31,
($ in millions) Productivity and Business Processes Intelligent Cloud More Personal Computing
2015 As Reported (GAAP) $ 6,690 $ 6,343 $ 12,473
2016 As Reported (GAAP) $ 7,382 $ 6,861 $ 11,823
Percentage Change Y/Y (GAAP) 10% 8% (5)%
Constant Currency Impact $ (108) $ (112) $ (119)
Percentage Change Y/Y (non-GAAP) Constant Currency 12% 10% (4)%

Selected Product and Service Revenue Constant Currency Reconciliation       

Three Months Ended December 31,
Percentage Change Y/Y (GAAP) Constant Currency Impact Percentage Change Y/Y (non-GAAP) Constant Currency
Office commercial products and cloud services 5% 2% 7%
Office 365 commercial 47% 2% 49%
Office consumer products and cloud services 22% (1)% 21%
Dynamics products and cloud services 7% 2% 9%
Server products and cloud services 12% 2% 14%
Azure 93% 2% 95%
Enterprise Services (4)% 2% (2)%
Windows OEM 5% 0% 5%
Windows commercial products and cloud services 5% 1% 6%
Search advertising excluding traffic acquisition costs 10% 1% 11%
Gaming (3)% 2% (1)%

 Commercial Cloud Annualized Revenue Run Rate

Commercial cloud annualized revenue run rate is calculated by taking revenue in the final month of the quarter multiplied by twelve for Office 365 commercial, Azure, Dynamics 365, and other cloud properties.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world and its mission is to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

  • intense competition in all of Microsoft’s markets;
  • increasing focus on services presents execution and competitive risks;
  • significant investments in new products and services that may not be profitable;
  • acquisitions, joint ventures, and strategic alliances may have an adverse effect on our business;
  • impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;
  • Microsoft’s continued ability to protect and earn revenues from its intellectual property rights;
  • claims that Microsoft has infringed the intellectual property rights of others;
  • the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;
  • cyber-attacks and security vulnerabilities in Microsoft products and services that could reduce revenue or lead to liability;
  • disclosure of personal data that could cause liability and harm to Microsoft’s reputation;
  • outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
  • government litigation and regulation that may limit how Microsoft designs and markets its products;
  • potential liability under trade protection and anti-corruption laws resulting from our international operations;
  • laws and regulations relating to the handling of personal data may impede the adoption of our services or result in increased costs, legal claims, or fines against us;
  • Microsoft’s ability to attract and retain talented employees;
  • adverse results in legal disputes;
  • unanticipated tax liabilities;
  • Microsoft’s hardware and software products may experience quality or supply problems;
  • exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange;
  • catastrophic events or geo-political conditions may disrupt our business; and
  • adverse economic or market conditions may harm our business.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of January 26, 2017. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

News Center

postheadericon Microsoft Cloud strength highlights second quarter results

REDMOND, Wash. — January 26, 2017 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2016:

  • Revenue was $ 24.1 billion GAAP, and $ 26.1 billion non-GAAP
  • Operating income was $ 6.2 billion GAAP, and $ 8.2 billion non-GAAP
  • Net income was $ 5.2 billion GAAP, and $ 6.5 billion non-GAAP
  • Diluted earnings per share was $ 0.66 GAAP, and $ 0.83 non-GAAP

Microsoft completed the acquisition of LinkedIn Corporation (“LinkedIn”) on December 8, 2016. Financial results from the acquired business are reported in the Productivity and Business Processes segment. For the second quarter of fiscal year 2017, the results of LinkedIn, including amortization of acquired intangible assets, contributed revenue, operating income, net income, and diluted earnings per share of $ 228 million, $ (201) million, $ (100) million, and $ (0.01), respectively.

“Our customers are seeing greater value and opportunity as we partner with them through their digital transformation,” said Satya Nadella, chief executive officer at Microsoft. “Accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud.”

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP financial results. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

Three Months Ended December 31,
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Reported (GAAP) $ 23,796 $ 6,026 $ 5,018 $ 0.62
Net Impact from Windows 10 Revenue Deferrals 1,710 1,710 1,128 0.14
2015 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $ 25,506 $ 7,736 $ 6,146 $ 0.76
2016 As Reported (GAAP) $ 24,090 $ 6,177 $ 5,200 $ 0.66
Net Impact from Windows 10 Revenue Deferrals 1,976 1,976 1,315 0.17
2016 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $ 26,066 $ 8,153 $ 6,515 $ 0.83
Percentage Change Y/Y (GAAP) 1% 3% 4% 6%
Percentage Change Y/Y (non-GAAP) 2% 5% 6% 9%
Percentage Change Y/Y (non-GAAP) Constant Currency 4% 8% 10% 13%

 

Microsoft is providing the following table to help investors compare results for the second quarter of fiscal year 2017 to the guidance previously provided for the quarter, which excluded LinkedIn.

Three Months Ended December 31,
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) from Table Above $ 25,506 $ 7,736 $ 6,146 $ 0.76
2016 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) from Table Above $ 26,066 $ 8,153 $ 6,515 $ 0.83
LinkedIn Results Including Amortization of Acquired Intangible Assets 228 (201) (100) (0.01)
2016 As Further Adjusted for Windows 10 Revenue Deferrals, Excluding LinkedIn Results (non-GAAP) $ 25,838 $ 8,354 $ 6,615 $ 0.84
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) 1% 8% 8% 11%
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) Constant Currency 3% 11% 12% 15%

Microsoft returned $ 6.5 billion to shareholders in the form of share repurchases and dividends in the second quarter of fiscal year 2017.

“I am pleased with our results this quarter. We see strong demand for our cloud-based services and are executing well on our long-term growth strategy,” said Amy Hood, executive vice president and chief financial officer at Microsoft.

Revenue in Productivity and Business Processes was $ 7.4 billion and increased 10% (up 12% in constant currency), with the following business highlights:

  • Office commercial products and cloud services revenue increased 5% (up 7% in constant currency) driven by Office 365 commercial revenue growth of 47% (up 49% in constant currency)
  • Office consumer products and cloud services revenue increased 22% (up 21% in constant currency) and Office 365 consumer subscribers increased to 24.9 million
  • Dynamics products and cloud services revenue increased 7% (up 9% in constant currency) driven by Dynamics 365 revenue growth
  • LinkedIn contributed revenue of $ 228 million for the period beginning on December 8, 2016

Revenue in Intelligent Cloud was $ 6.9 billion and increased 8% (up 10% in constant currency), with the following business highlights:

  • Server products and cloud services revenue increased 12% (up 14% in constant currency) driven by double-digit annuity revenue growth
  • Azure revenue increased 93% (up 95% in constant currency) with Azure compute usage more than doubling year-over-year
  • Enterprise Services revenue decreased 4% (down 2% in constant currency) with declines in custom support agreements offset by growth in Premier Support Services and consulting

Revenue in More Personal Computing was $ 11.8 billion and decreased 5% (down 4% in constant currency) driven primarily by lower phone revenue, with the following business highlights:

  • Windows OEM revenue increased 5% (up 5% in constant currency)
  • Windows commercial products and cloud services revenue increased 5% (up 6% in constant currency) driven by annuity revenue growth
  • Search advertising revenue excluding traffic acquisition costs increased 10% (up 11% in constant currency) driven by increased revenue per search and search volume
  • Gaming revenue decreased 3% (down 1% in constant currency) with lower Xbox console revenue offset by Xbox software and services revenue growth

Acquisitions and Divestitures

Microsoft completed the acquisition of LinkedIn on December 8, 2016 and the sale of its feature phone business in November 2016.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel and corporate secretary, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on January 26, 2018.

“As Adjusted” Financial Results and non-GAAP Measures

During the second quarter of fiscal years 2017 and 2016, GAAP revenue, operating income, net income, and diluted earnings per share include the net impact from Windows 10 revenue deferrals. During the second quarter of fiscal year 2017, GAAP revenue, operating income, net income, and diluted earnings per share include the results of LinkedIn. These items are defined below. In addition to these financial results reported in accordance with GAAP, Microsoft has provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these non-GAAP measures gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance.

Net Impact from Windows 10 Revenue Deferrals. With respect to our non-GAAP measures related to Windows 10 revenue, we believe these measures bridge investor information and minimize potential confusion during the brief period between the time Windows 10 revenue recognition moved from upfront to ratable, and the adoption of the new revenue standard, when Windows 10 will again be recognized predominantly upfront. The net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from adoption of the new revenue standard.

LinkedIn Results. With respect to our non-GAAP measure related to LinkedIn results, we believe this measure will help investors compare actual results for the second quarter of fiscal year 2017 to the guidance previously provided for the quarter, which excluded LinkedIn. We do not anticipate providing this non-GAAP measure in the future as our guidance will incorporate expected results for LinkedIn.

These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Non-GAAP Definitions

Net Impact from Windows 10 Revenue Deferrals. Microsoft recorded net revenue deferrals of $ 2.0 billion during the second quarter of fiscal year 2017 and net revenue deferrals of $ 1.7 billion during the second quarter of fiscal year 2016, related to Windows 10.

With the launch of Windows 10 in July 2015, Windows 10 customers receive future versions and updates at no additional charge. Under current revenue recognition accounting guidance, when standalone software is sold with future upgrade rights, revenue must be deferred over the life of the computing device on which it is installed. This is different from prior versions of Windows, which were sold without upgrade rights, where all revenue from original equipment manufacturer (“OEM”) customers was recognized at the time of billing, i.e., upfront.

When Microsoft adopts the new revenue standard, predominantly all Windows OEM revenue will be recognized at the time of billing, which is similar to the revenue recognition for prior versions of Windows. Additional information regarding the new revenue standard is provided in the “Recent Accounting Guidance Not Yet Adopted” section of Microsoft’s Form 10-Q for the quarter ended December 31, 2016 (Notes to Financial Statements). Microsoft reflects the recognition of Windows 10 revenue at the time of billing in “As Adjusted for Windows 10 Revenue Deferrals (non-GAAP)” revenue to provide comparability during the short period where Windows 10 will be recognized over the estimated life of a device, i.e., ratable, rather than at the time of billing.

LinkedIn Results. For the second quarter of fiscal year 2017, LinkedIn contributed revenue, operating income, net income, and diluted earnings per share of $ 228 million, $ (201) million, $ (100) million, and $ (0.01), respectively. Microsoft excludes the results of LinkedIn and reflects the recognition of Windows 10 revenue at the time of billing in “As Further Adjusted for Windows 10 Revenue Deferrals, Excluding LinkedIn Results (non-GAAP)” to help investors compare results for the second quarter of fiscal year 2017 to the guidance previously provided for the quarter, which excluded LinkedIn.

Constant Currency

Microsoft presents constant currency information to provide a non-GAAP framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period non-GAAP results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. The non-GAAP financial measures presented below should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. All growth comparisons relate to the corresponding period in the last fiscal year.

Financial Performance Constant Currency Reconciliation

Three Months Ended December 31,
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Reported (GAAP) $ 23,796 $ 6,026 $ 5,018 $ 0.62
2015 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $ 25,506 $ 7,736 $ 6,146 $ 0.76
2016 As Reported (GAAP) $ 24,090 $ 6,177 $ 5,200 $ 0.66
2016 As Adjusted for Windows 10 Revenue Deferrals (non-GAAP) $ 26,066 $ 8,153 $ 6,515 $ 0.83
2016 As Further Adjusted for Windows 10 Revenue Deferrals, Excluding LinkedIn Results (non-GAAP) $ 25,838 $ 8,354 $ 6,615 $ 0.84
Percentage Change Y/Y (GAAP) 1% 3% 4% 6%
Percentage Change Y/Y (non-GAAP) 2% 5% 6% 9%
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) 1% 8% 8% 11%
Constant Currency Impact $ (339) $ (228) $ (260) $ (0.03)
Constant Currency Impact Excluding LinkedIn $ (333) $ (223) $ (251) $ (0.03)
Percentage Change Y/Y (non-GAAP) Constant Currency 4% 8% 10% 13%
Percentage Change Y/Y Excluding LinkedIn Results (non-GAAP) Constant Currency 3% 11% 12% 15%

Segment Revenue Constant Currency Reconciliation

Three Months Ended December 31,
($ in millions) Productivity and Business Processes Intelligent Cloud More Personal Computing
2015 As Reported (GAAP) $ 6,690 $ 6,343 $ 12,473
2016 As Reported (GAAP) $ 7,382 $ 6,861 $ 11,823
Percentage Change Y/Y (GAAP) 10% 8% (5)%
Constant Currency Impact $ (108) $ (112) $ (119)
Percentage Change Y/Y (non-GAAP) Constant Currency 12% 10% (4)%

Selected Product and Service Revenue Constant Currency Reconciliation       

Three Months Ended December 31,
Percentage Change Y/Y (GAAP) Constant Currency Impact Percentage Change Y/Y (non-GAAP) Constant Currency
Office commercial products and cloud services 5% 2% 7%
Office 365 commercial 47% 2% 49%
Office consumer products and cloud services 22% (1)% 21%
Dynamics products and cloud services 7% 2% 9%
Server products and cloud services 12% 2% 14%
Azure 93% 2% 95%
Enterprise Services (4)% 2% (2)%
Windows OEM 5% 0% 5%
Windows commercial products and cloud services 5% 1% 6%
Search advertising excluding traffic acquisition costs 10% 1% 11%
Gaming (3)% 2% (1)%

 Commercial Cloud Annualized Revenue Run Rate

Commercial cloud annualized revenue run rate is calculated by taking revenue in the final month of the quarter multiplied by twelve for Office 365 commercial, Azure, Dynamics 365, and other cloud properties.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world and its mission is to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

  • intense competition in all of Microsoft’s markets;
  • increasing focus on services presents execution and competitive risks;
  • significant investments in new products and services that may not be profitable;
  • acquisitions, joint ventures, and strategic alliances may have an adverse effect on our business;
  • impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;
  • Microsoft’s continued ability to protect and earn revenues from its intellectual property rights;
  • claims that Microsoft has infringed the intellectual property rights of others;
  • the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;
  • cyber-attacks and security vulnerabilities in Microsoft products and services that could reduce revenue or lead to liability;
  • disclosure of personal data that could cause liability and harm to Microsoft’s reputation;
  • outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
  • government litigation and regulation that may limit how Microsoft designs and markets its products;
  • potential liability under trade protection and anti-corruption laws resulting from our international operations;
  • laws and regulations relating to the handling of personal data may impede the adoption of our services or result in increased costs, legal claims, or fines against us;
  • Microsoft’s ability to attract and retain talented employees;
  • adverse results in legal disputes;
  • unanticipated tax liabilities;
  • Microsoft’s hardware and software products may experience quality or supply problems;
  • exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange;
  • catastrophic events or geo-political conditions may disrupt our business; and
  • adverse economic or market conditions may harm our business.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of January 26, 2017. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

News Center

postheadericon Microsoft and Agder Energi collaborate to build an intelligent grid powered by an intelligent cloud

KRISTIANSAND, Norway, and REDMOND, Wash. — Oct. 6, 2016 — Thursday at Nordic Edge Expo, Agder Energi, Microsoft Corp. and Powel AS announced a pilot project that will help create a more efficient, flexible and intelligent grid of the future.

The project will leverage intelligent technology to create a cutting-edge smart grid solution that will prepare the grid for greater renewable integration and help keep pace with growing energy consumption. The Microsoft Azure intelligent cloud, PowerBI and Azure IoT Hub were combined with expertise from Powel to provide Agder Energi with tools to improve dispatch of new energy resources, including device controls and predictive forecasting for situational awareness.

“At Agder Energi we want to use new technology to make the power grid more efficient, more predictable and more flexible. We will go from being energy generators to energy partners, with a more active role for our customers,” said Agder Energi’s CEO Tom Nysted. “Together with our partners at Microsoft and Powel, we will use innovation to solve the challenges facing the grid.”

While energy technologies have made tremendous advances in the past decade, electrical grids around the world have not. Power grids already require massive investments to keep pace with growing energy consumption; they are now challenged to leverage new resources — distributed energy systems like rooftop solar panels, batteries, smart homes and facilities — that can help provide support back to the grid in times of high demand.

The pilot will demonstrate how utilities can implement intelligent cloud-based smart grid solutions to unlock a host of energy and sustainability benefits. This solution will enable energy savings and easier integration of renewable energy to the grid mix, while also saving consumers money by reducing expensive peak power use and capital investment.

“We are applying our strong domain expertise and acting as the integration and forecasting partner in this project to seamlessly integrate Agder’s SCADA to the Azure IoT Hub, provide demand forecasts, and production forecasts for wind and solar in the region,” said Powel’s CEO Bård Benum. “We are thrilled to be working closely together with Agder Energi and Microsoft to help enable radical innovation in the utility sector.”

The pilot will be operated at an Agder Energi substation that is currently operating at 120 percent of its capacity a number of times throughout the year. The technology will enable operators to better predict demand and engage distributed resources, thereby reducing the demand on the substation and saving money that would otherwise be needed to upgrade. Eventually, the partners expect to build on these results to perform automatic balancing of renewable energy and peak load control in near real time.

“Renewable energy resources and advancements in intelligent cloud technology are driving a digital transformation of grid operations to explore new business models,” said Kevin Dallas, Microsoft Corporate Vice President, IoT Business Development. “Enabling solutions like Agder’s will accelerate widespread renewable and distributed power generation. It’s a bright future for the utility industry and for a sustainable world.”

Relevance to Norway

While the project focuses on a single substation that faces loading challenges, this is not a unique problem. Indeed, this is a problem experienced across the Norwegian market. Widespread adoption of grid management software that effectively manages new energy sources as a network of IoT resources has the potential to ameliorate costs of new hardware infrastructure for the Norwegian grid. The partners aim to demonstrate a digital transformation that will allow others in the industry to look to Norway as a leading example on energy and IoT.

About Agder Energi

The vision of Agder Energi is to be one of the leading companies in the Norwegian renewable energy sector. Agder Energi generates 7.9 TWh in an average year, and is Norway’s third largest producer of electricity. The grid operating company Agder Energi Nett has 20,900 kilometres of transmission and distribution lines that supply electricity to a total of 190,000 customers in southern Norway.

About Powel

Powel AS, headquartered in Trondheim, Norway, delivers business-critical software solutions and related services specifically designed to help energy companies and public utilities improve daily operational processes and service quality. The company is a market leader in software solutions for grid operations and maintenance, energy production and smart metering, with offices in Norway, Sweden, Denmark, Poland, Turkey, Switzerland and Chile. Founded in 1996, Powel AS is a privately held company with more than 420 employees. www.powel.com

About Microsoft

Microsoft (Nasdaq “MSFT” @Microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

News Center

postheadericon Microsoft Cloud strength highlights first quarter results

REDMOND, Wash. — October 20, 2016 — Microsoft Corp. today announced the following results for the quarter ended September 30, 2016:

  • Revenue was $ 20.5 billion GAAP, and $ 22.3 billion non-GAAP
  • Operating income was $ 5.2 billion GAAP, and $ 7.1 billion non-GAAP
  • Net income was $ 4.7 billion GAAP, and $ 6.0 billion non-GAAP
  • Diluted earnings per share was $ 0.60 GAAP, and $ 0.76 non-GAAP

“We are helping to lead a profound digital transformation for customers, infusing intelligence across all of our platforms and experiences,” said Satya Nadella, chief executive officer at Microsoft. “We continue to innovate, grow engagement, and build our total addressable market.”

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP financial results. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

Three Months Ended September 30
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Reported (GAAP) $ 20,379 $ 5,793 $ 4,902 $ 0.61
Net Impact from Windows 10 Revenue Deferrals 1,281 1,281 759 0.09
2015 As Adjusted (non-GAAP) $ 21,660 $ 7,074 $ 5,661 $ 0.70
2016 As Reported (GAAP) $ 20,453 $ 5,225 $ 4,690 $ 0.60
Net Impact from Windows 10 Revenue Deferrals 1,881 1,881 1,299 0.16
2016 As Adjusted (non-GAAP) $ 22,334 $ 7,106 $ 5,989 $ 0.76
Percentage Change Y/Y (GAAP) 0% (10)% (4)% (2)%
Percentage Change Y/Y (non-GAAP) 3% 0% 6% 9%
Percentage Change Y/Y (non-GAAP) Constant Currency 5% 4% 10% 13%

Microsoft returned $ 6.6 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2017. During the quarter, the company announced an 8% increase in its quarterly dividend to $ 0.39 per share, a new share repurchase program authorizing up to $ 40 billion in share repurchases, and reaffirmed it is on track to complete its current $ 40 billion share repurchase program by December 31, 2016.

“Our first quarter results showed continued demand for our cloud-based services,” said Amy Hood, executive vice president and chief financial officer at Microsoft. “We continue to invest, position ourselves for long-term growth, and execute well across our businesses.”

Revenue in Productivity and Business Processes grew 6% (up 8% in constant currency) to $ 6.7 billion, with the following business highlights:

  • Office commercial products and cloud services revenue grew 5% (up 8% in constant currency) driven by Office 365 commercial revenue growth of 51% (up 54% in constant currency)
  • Office consumer products and cloud services revenue grew 8% (up 8% in constant currency) and Office 365 consumer subscribers increased to 24.0 million
  • Dynamics products and cloud services revenue grew 11% (up 13% in constant currency) driven by Dynamics online revenue growth

Revenue in Intelligent Cloud grew 8% (up 10% in constant currency) to $ 6.4 billion, with the following business highlights:

  • Server products and cloud services revenue increased 11% (up 13% in constant currency) driven by double-digit annuity revenue growth
  • Azure revenue grew 116% (up 121% in constant currency) with Azure compute usage more than doubling year-over-year
  • Enterprise Services revenue increased 1% (up 2% in constant currency) with growth in Premier Support Services and consulting offset by declines in custom support agreements

Revenue in More Personal Computing declined 2% (down 1% in constant currency) to $ 9.3 billion, with the following business highlights:

  • Windows OEM revenue was flat year-over-year (flat in constant currency), slightly ahead of the PC market
  • Windows commercial products and cloud services revenue was flat year-over-year (up 2% in constant currency) driven by annuity revenue
  • Phone revenue declined 72% (down 71% in constant currency)
  • Gaming revenue declined 5% (down 4% in constant currency) driven by lower Xbox console revenue offset by higher Xbox software and services revenue
  • Search advertising revenue excluding traffic acquisition costs grew 9% (up 10% in constant currency) driven by increased revenue per search and search volume

Acquisitions and Divestitures

Microsoft expects to close the acquisition of LinkedIn Corporation and the sale of our entry-level feature phone business in the second quarter of fiscal year 2017, subject to regulatory approvals and other closing conditions.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel and corporate secretary, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on October 20, 2017.

“As Adjusted” Financial Results and non-GAAP Measures

During the first quarter of fiscal year 2017 and the first quarter of fiscal year 2016, GAAP revenue, operating income, net income, and diluted earnings per share include the net impact from Windows 10 revenue deferrals. This item is defined below. In addition to these financial results reported in accordance with GAAP, Microsoft has provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these non-GAAP measures gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. With respect to our non-GAAP measures related to Windows 10 revenue, we believe these measures bridge investor information and minimize potential confusion during the brief period between the time Windows 10 revenue recognition moved from upfront to ratable, and the adoption of the new revenue standard, when Windows 10 will again be recognized predominantly upfront. The net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from adoption of the new revenue standard. These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Non-GAAP Definition

Net Impact from Windows 10 Revenue Deferrals. Microsoft recorded net revenue deferrals of $ 1.9 billion during the three months ended September 30, 2016 and net revenue deferrals of $ 1.3 billion during the three months ended September 30, 2015, related to Windows 10.

With the launch of Windows 10 in July 2015, Windows 10 customers receive future versions and updates at no additional charge. Under current revenue recognition accounting guidance, when standalone software is sold with future upgrade rights, revenue must be deferred over the life of the computing device on which it is installed. This is different from prior versions of Windows, which were sold without upgrade rights, where all revenue from original equipment manufacturer (“OEM”) customers was recognized at the time of billing, i.e., upfront.

When Microsoft adopts the new revenue standard, predominantly all Windows OEM revenue will be recognized at the time of billing, which is similar to the revenue recognition for prior versions of Windows. Additional information regarding the new revenue standard is provided below. Microsoft reflects the recognition of Windows 10 revenue at the time of billing in “As Adjusted (non-GAAP)” revenue to provide comparability during the short period where Windows 10 will be recognized over the estimated life of a device, i.e., ratable, rather than at the time of billing.

New Revenue Standard

In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard related to revenue recognition. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations.

The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented.

The new standard will be effective for us beginning July 1, 2018, and adoption as of the original effective date of July 1, 2017 is permitted. We currently anticipate early adoption of the new standard effective July 1, 2017. Our ability to early adopt using the full retrospective method is dependent on system readiness, including software procured from third-party providers, and the completion of our analysis of information necessary to restate prior period financial statements.

We anticipate this standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for software license revenue. We expect revenue related to hardware, cloud offerings, and professional services to remain substantially unchanged. Specifically, under the new standard we expect to recognize Windows 10 revenue predominantly upfront rather than ratably over the life of the related device. We also expect to recognize license revenue upfront rather than over the subscription period from certain multi-year commercial software subscriptions that include both software licenses and software assurance. Due to the complexity of certain of our commercial license subscription contracts, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and may vary in some instances from upfront recognition.

We currently believe the net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from the adoption of the new standard.

Constant Currency

Microsoft presents constant currency information to provide a non-GAAP framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period non-GAAP results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. The non-GAAP financial measures presented below should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. All growth comparisons relate to the corresponding period in the last fiscal year.

Financial Performance Constant Currency Reconciliation

Three Months Ended September 30
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Reported (GAAP) $ 20,379 $ 5,793 $ 4,902 $ 0.61
2015 As Adjusted (non-GAAP) $ 21,660 $ 7,074 $ 5,661 $ 0.70
2016 As Reported (GAAP) $ 20,453 $ 5,225 $ 4,690 $ 0.60
2016 As Adjusted (non-GAAP) $ 22,334 $ 7,106 $ 5,989 $ 0.76
Percentage Change Y/Y (GAAP) 0% (10)% (4)% (2)%
Percentage Change Y/Y (non-GAAP) 3% 0% 6% 9%
Constant Currency Impact $ (341) $ (256) $ (209) $ (0.03)
Percentage Change Y/Y (non-GAAP) Constant Currency 5% 4% 10% 13%

Segment Revenue Constant Currency Reconciliation

Three Months Ended September 30
($ in millions) Productivity and Business Processes Intelligent Cloud More Personal Computing
2015 As Reported (GAAP) $ 6,306 $ 5,892 $ 9,462
2016 As Reported (GAAP) $ 6,658 $ 6,382 $ 9,294
Percentage Change Y/Y (GAAP) 6% 8% (2)%
Constant Currency Impact $ (125) $ (119) $ (97)
Percentage Change Y/Y (non-GAAP) Constant Currency 8% 10% (1)%

 


 

Selected Product and Service Revenue Constant Currency Reconciliation

Three Months Ended September 30
Percentage Change Y/Y (GAAP) Constant Currency Impact Percentage Change Y/Y (non-GAAP) Constant Currency
Office commercial products and cloud services 5% 3% 8%
Office 365 commercial 51% 3% 54%
Office consumer products and cloud services 8% 0% 8%
Dynamics products and cloud services 11% 2% 13%
Server products and cloud services 11% 2% 13%
Azure 116% 5% 121%
Enterprise Services 1% 1% 2%
Windows OEM 0% 0% 0%
Windows commercial products and cloud services 0% 2% 2%
Phone (72)% 1% (71)%
Gaming (5)% 1% (4)%
Search advertising excluding traffic acquisition costs 9% 1% 10%

Commercial Cloud Annualized Revenue Run Rate

Commercial cloud annualized revenue run rate is calculated by taking revenue in the final month of the quarter multiplied by twelve for Office 365 commercial, Azure, Dynamics Online, and other cloud properties.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world and its mission is to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

  • intense competition in all of Microsoft’s markets;
  • increasing focus on services presents execution and competitive risks;
  • significant investments in new products and services that may not be profitable;
  • acquisitions, joint ventures, and strategic alliances may have an adverse effect on our business;
  • impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;
  • Microsoft’s continued ability to protect and earn revenues from its intellectual property rights;
  • claims that Microsoft has infringed the intellectual property rights of others;
  • the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;
  • cyber-attacks and security vulnerabilities in Microsoft products and services that could reduce revenue or lead to liability;
  • disclosure of personal data that could cause liability and harm to Microsoft’s reputation;
  • outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
  • government litigation and regulation that may limit how Microsoft designs and markets its products;
  • potential liability under trade protection and anti-corruption laws resulting from our international operations;
  • laws and regulations relating to the handling of personal data may impede the adoption of our services or result in increased costs, legal claims, or fines against us;
  • Microsoft’s ability to attract and retain talented employees;
  • adverse results in legal disputes;
  • unanticipated tax liabilities;
  • Microsoft’s hardware and software products may experience quality or supply problems;
  • exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange;
  • catastrophic events or geo-political conditions may disrupt our business; and
  • adverse economic or market conditions may harm our business.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of October 20, 2016. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

News Center

postheadericon Microsoft Cloud strength highlights fourth quarter results

REDMOND, Wash. — July 19, 2016 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2016:

  • Revenue was $ 20.6 billion GAAP, and $ 22.6 billion non-GAAP
  • Operating income was $ 3.1 billion GAAP, and $ 6.2 billion non-GAAP
  • Net income was $ 3.1 billion GAAP, and $ 5.5 billion non-GAAP
  • Diluted earnings per share was $ 0.39 GAAP, and $ 0.69 non-GAAP

“This past year was pivotal in both our own transformation and in partnering with our customers who are navigating their own digital transformations,” said Satya Nadella, chief executive officer at Microsoft. “The Microsoft Cloud is seeing significant customer momentum and we’re well positioned to reach new opportunities in the year ahead.”

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP financial results. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. Additional information regarding non-GAAP definitions is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

  Three Months Ended June 30,  
($ in millions, except per share amounts) Revenue Operating Income (Loss) Net Income (Loss) Diluted Earnings (Loss) per Share
2015 As Reported (GAAP) $ 22,180 $ (2,053) $ (3,195) $ (0.40)
Impairment, Integration, and Restructuring Expenses 8,438 8,262 1.02
2015 As Adjusted (non-GAAP) $ 22,180 $ 6,385 $ 5,067 $ 0.62
2016 As Reported (GAAP) $ 20,614 $ 3,080 $ 3,122 $ 0.39
Net Impact from Windows 10 Revenue Deferrals 2,028 2,028 1,467 0.19
Impairment, Integration, and Restructuring Expenses 1,110 895 0.11
2016 As Adjusted (non-GAAP) $ 22,642 $ 6,218 $ 5,484 $ 0.69
Percentage Change Y/Y (GAAP) (7)% * * *
Percentage Change Y/Y (non-GAAP) 2% (3)% 8% 11%
Percentage Change Y/Y (non-GAAP) Constant Currency 5% 6% 23% 27%
* Not meaningful        

During the quarter, Microsoft returned $ 6.4 billion to shareholders in the form of share repurchases and dividends.

The current quarter effective tax rate reflected a favorable mix of our income between the U.S. and foreign countries, as well as benefits associated with distributions from foreign affiliates. As such, the GAAP and non-GAAP tax rates were 7% and 15%, respectively.

“This fiscal year we invested in innovation and expanded our market presence in key product areas and geographies,” said Amy Hood, executive vice president and chief financial officer at Microsoft. “I am pleased with the execution from our sales teams and partners this quarter who delivered a strong finish to the fiscal year.”

Revenue in Productivity and Business Processes grew 5% (up 8% in constant currency) to $ 7.0 billion, with the following business highlights:

  • Office commercial products and cloud services revenue grew 5% (up 9% in constant currency) driven by Office 365 commercial revenue growth of 54% (up 59% in constant currency)
  • Office consumer products and cloud services revenue grew 19% (up 18% in constant currency) with Office 365 consumer subscribers increasing to 23.1 million
  • Dynamics products and cloud services revenue grew 6% (up 7% in constant currency) with Dynamics CRM Online paid seats growing more than 2.5x year-over-year

Revenue in Intelligent Cloud grew 7% (up 10% in constant currency) to $ 6.7 billion, with the following business highlights:

  • Server products and cloud services revenue increased 5% (up 8% in constant currency) driven by double-digit annuity revenue growth
  • Azure revenue grew 102% (up 108% in constant currency) with Azure compute usage more than doubling year-over-year
  • Enterprise Mobility customers nearly doubled year-over-year to over 33,000, and the installed base grew nearly 2.5x year-over-year

Revenue in More Personal Computing declined 4% (down 2% in constant currency) to $ 8.9 billion, with the following business highlights:

  • Windows OEM non-Pro revenue grew 27% (up 27% in constant currency), outpacing the consumer PC market, and Windows OEM Pro revenue grew 2% (up 2% in constant currency)
  • Surface revenue increased 9% (up 9% in constant currency) driven by Surface Pro 4 and Surface Book
  • Phone revenue declined 71% (down 70% in constant currency)
  • Xbox Live monthly active users grew 33% year-over-year to 49 million
  • Search advertising revenue excluding traffic acquisition costs grew 16% (up 17% in constant currency) with continued benefit from Windows 10 usage

Fiscal Year 2016 Results

Microsoft Corp. today announced the following results for the fiscal year ended June 30, 2016:

  • Revenue was $ 85.3 billion GAAP, and $ 92.0 billion non-GAAP
  • Operating income was $ 20.2 billion GAAP, and $ 27.9 billion non-GAAP
  • Net income was $ 16.8 billion GAAP, and $ 22.3 billion non-GAAP
  • Diluted earnings per share was $ 2.10 GAAP, and $ 2.79 non-GAAP

The following table reconciles our financial results reported in accordance with GAAP to non-GAAP financial results. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. The items included in our non-GAAP presentation have changed this quarter to reflect the recent Securities and Exchange Commission (“SEC”) Compliance & Disclosure Interpretations (“C&DIs”). Additional information regarding non-GAAP definitions is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

 

 

  Twelve Months Ended June 30,  
($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2015 As Reported (GAAP) $ 93,580 $ 18,161 $ 12,193 $ 1.48
Impairment, Integration, and Restructuring Expenses 10,011 9,494 $ 1.15
2015 As Adjusted (non-GAAP) $ 93,580 $ 28,172 $ 21,687 $ 2.63
2016 As Reported (GAAP) $ 85,320 $ 20,182 $ 16,798 $ 2.10
Net Impact from Windows 10 Revenue Deferrals 6,643 6,643 4,635 0.58
Impairment, Integration, and Restructuring Expenses 1,110 895 0.11
2016 As Adjusted (non-GAAP) $ 91,963 $ 27,935 $ 22,328 $ 2.79
Percentage Change Y/Y (GAAP) (9)% 11% 38% 42%
Percentage Change Y/Y (non-GAAP) (2)% (1)% 3% 6%

The current year GAAP and non-GAAP effective tax rates were 15% and 19%, respectively.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel and corporate secretary, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on July 19, 2017.

“As Adjusted” Financial Results and non-GAAP Measures

During fiscal year 2016, GAAP revenue, operating income, net income, and diluted earnings per share include the net impact from Windows 10 revenue deferrals. During fiscal year 2016 and fiscal year 2015, GAAP operating income, net income, and diluted earnings per share include impairment, integration, and restructuring expenses. These items are defined below. In addition to these financial results reported in accordance with GAAP, Microsoft has provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these non-GAAP measures gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. With respect to our non-GAAP measures related to Windows 10 revenue we believe these measures bridge investor information and minimize potential confusion during the brief period between the time Windows 10 revenue recognition moved from upfront to ratable, and the adoption of the new revenue standard, when Windows 10 will again be recognized predominantly upfront. The net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from adoption of the new revenue standard. These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Non-GAAP Definitions

Net Impact from Windows 10 Revenue Deferrals. Microsoft recorded net revenue deferrals of $ 2.0 billion during the three months ended June 30, 2016 and net revenue deferrals of $ 6.6 billion during the twelve months ended June 30, 2016, related to Windows 10.

With the launch of Windows 10 in July 2015, Windows 10 customers receive future versions and updates at no additional charge. Under current revenue recognition accounting guidance, when standalone software is sold with future upgrade rights, revenue must be deferred over the life of the computing device on which it is installed. This is different from prior versions of Windows, which were sold without upgrade rights, where all revenue from original equipment manufacturer (“OEM”) customers was recognized at the time of billing, i.e., upfront.

When Microsoft adopts the new revenue standard, predominately all Windows OEM revenue will be recognized at the time of billing, which is similar to the revenue recognition for prior versions of Windows. Additional information regarding the new revenue standard is provided below. Microsoft reflects the recognition of Windows 10 revenue at the time of billing in “As Adjusted (non-GAAP)” revenue to provide comparability during the short period of time where Windows 10 will be recognized over the estimated life of a device, i.e., ratable, rather than at the time of billing.

Impairment, Integration and Restructuring Expenses. During the fourth quarter of fiscal year 2016, restructuring and related impairment expenses were $ 1.1 billion. Microsoft recorded $ 630 million of asset impairment charges which reflected the performance of our phone business, and $ 480 million of restructuring charges primarily related to our previously announced phone business restructuring plans.

During the fourth quarter of fiscal year 2015, impairment, integration, and restructuring expenses were $ 8.4 billion. Microsoft recorded $ 7.5 billion of goodwill and asset impairment charges related to our phone business, and $ 940 million of integration and restructuring expenses primarily related to our phone business restructuring plans.

For fiscal year 2015, impairment, integration, and restructuring expenses were $ 10.0 billion. Microsoft recorded $ 7.5 billion of goodwill and asset impairment charges related to the phone business, and $ 2.5 billion of integration and restructuring expenses primarily related to our phone business restructuring plans.

New Revenue Standard

In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard related to revenue recognition. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations.

The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented.

The new standard will be effective for us beginning July 1, 2018, and adoption as of the original effective date of July 1, 2017 is permitted. We currently anticipate early adoption of the new standard effective July 1, 2017. Our ability to early adopt using the full retrospective method is dependent on system readiness, including software procured from third-party providers, and the completion of our analysis of information necessary to restate prior period financial statements.

We anticipate this standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for software license revenue. We expect revenue related to hardware, cloud offerings, and professional services to remain substantially unchanged. Specifically, under the new standard we expect to recognize Windows 10 revenue predominantly upfront rather than ratably over the life of the related device. We also expect to recognize license revenue upfront rather than over the subscription period from certain multi-year commercial software subscriptions that include both software licenses and software assurance. Due to the complexity of certain of our commercial license subscription contracts, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms, and may vary in some instances from upfront recognition.

We currently believe the net change in Windows 10 revenue from period to period is indicative of the net change in revenue we expect from the adoption of the new standard.

Constant Currency

Microsoft presents constant currency information to provide a non-GAAP framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period non-GAAP results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. The non-GAAP financial measures presented below should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. All growth comparisons relate to the corresponding period in the last fiscal year.

Financial Performance Constant Currency Reconciliation

  Three Months Ended June 30,
($ in millions, except per share amounts) Revenue Operating Income (Loss) Net Income (Loss) Diluted Earnings (Loss) per Share
2015 As Reported (GAAP) $ 22,180 $ (2,053) $ (3,195) $ (0.40)
2015 As Adjusted (non-GAAP) $ 22,180 $ 6,385 $ 5,067 $ 0.62
2016 As Reported (GAAP) $ 20,614 $ 3,080 $ 3,122 $ 0.39
2016 As Adjusted (non-GAAP) $ 22,642 $ 6,218 $ 5,484 $ 0.69
Percentage Change Y/Y (GAAP) (7)% * * *
Percentage Change Y/Y (non-GAAP) 2% (3)% 8% 11%
Constant Currency Impact $ (596) $ (575) $ (764) $ (0.10)
Percentage Change Y/Y (non-GAAP) Constant Currency 5% 6% 23% 27%
* Not meaningful        

Segment Revenue Constant Currency Reconciliation

  Three Months Ended June 30,
($ in millions) Productivity and Business Processes Intelligent Cloud More Personal Computing
2015 As Reported (GAAP) $ 6,661 $ 6,296 $ 9,243
2016 As Reported (GAAP) $ 6,969 $ 6,711 $ 8,897
Percentage Change Y/Y (GAAP) 5% 7% (4)%
Constant Currency Impact $ (249) $ (215) $ (133)
Percentage Change Y/Y (non-GAAP) Constant Currency 8% 10% (2)%

 


 

Selected Product Revenue Constant Currency Reconciliation

  Three Months Ended June 30,
Percentage Change Y/Y (GAAP) Constant Currency Impact Percentage Change Y/Y (non-GAAP) Constant Currency
Office commercial products and cloud services 5% 4% 9%
Office 365 commercial 54% 5% 59%
Office consumer products and cloud services 19% (1)% 18%
Dynamics products and cloud services 6% 1% 7%
Server products and cloud services 5% 3% 8%
Azure 102% 6% 108%
Windows OEM non-Pro 27% 0% 27%
Windows OEM Pro 2% 0% 2%
Surface 9% 0% 9%
Phone (71)% 1% (70%)
Search advertising excluding traffic acquisition costs 16% 1% 17%

Reconciliation of GAAP and Non-GAAP Effective Tax Rates

The following table provides a reconciliation of the GAAP and non-GAAP effective tax rates for the current quarter and current year:

  Effective Tax Rate
Three Months Ended June 30, Twelve Months Ended June 30,
2016 As Reported (GAAP) 7% 15%
Net Impact from Windows 10 Revenue Deferrals 5% 4%
Impairment, Integration, and Restructuring Expenses 3% 0%
2016 As Adjusted (non-GAAP) 15% 19%

Commercial Cloud Annualized Revenue Run Rate

Commercial cloud annualized revenue run rate is calculated by taking revenue in the final month of the quarter multiplied by twelve for Office 365 commercial, Azure, Dynamics Online, and other cloud properties.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world and its mission is to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

  • intense competition in all of Microsoft’s markets;
  • increasing focus on services presents execution and competitive risks;
  • significant investments in new products and services that may not be profitable;
  • acquisitions, joint ventures, and strategic alliances may have an adverse effect on our business;
  • impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;
  • Microsoft’s continued ability to protect and earn revenues from its intellectual property rights;
  • claims that Microsoft has infringed the intellectual property rights of others;
  • the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;
  • cyber-attacks and security vulnerabilities in Microsoft products and services that could reduce revenue or lead to liability;
  • disclosure of personal data that could cause liability and harm to Microsoft’s reputation;
  • outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
  • government litigation and regulation that may limit how Microsoft designs and markets its products;
  • potential liability under trade protection and anti-corruption laws resulting from our international operations;
  • laws and regulations relating to the handling of personal data may impede the adoption of our services or result in increased costs, legal claims, or fines against us;
  • Microsoft’s ability to attract and retain talented employees;
  • adverse results in legal disputes;
  • unanticipated tax liabilities;
  • Microsoft’s hardware and software products may experience quality or supply problems;
  • exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange;
  • catastrophic events or geo-political conditions may disrupt our business; and
  • adverse economic or market conditions may harm our business.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of July 19, 2016. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

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postheadericon Jearwon Microelectronics and Microsoft to partner on cloud desktop business solutions

REDMOND, Wash., and CHANGCHUN, China — June 27, 2016 — On Monday, Microsoft Technology Licensing LLC and Jearwon Microelectronics announced a new partnership that will expand cloud-based business solutions for enterprise customers around the world. This collaboration — which includes the delivery of patent license rights — on remote desktop technology comes as Jearwon Microelectronics, which specializes in the design and manufacturing of high-performance central processing unit (CPU) technology, unveiled its Z1 CPU and ZERO PAD™ products at its headquarters in Changchun, China, today as well.

Jearwonphoto

Huang Wei, CEO of Jearwon Microelectronics, said, “Market research shows that the cloud desktop is the future of enterprise computing, and offering an affordable, high-performance zero client will allow businesses to fully take advantage of this technology. Jearwon is happy to partner with Microsoft, a leader in commercial cloud environments. The Jearwon Z1 CPU has many applications, including integrating it into zero clients, AIO zero clients and tablets. Cloud computing and desktop virtualization are the future of computing, and by partnering with Microsoft, we are creating products that have widespread appeal.”

“Cloud-backed business solutions are essential for enterprise customers around the world, and this new partnership with Jearwon is about delivering better, more efficient services to empower businesses to thrive,” said Nick Psyhogeos, president of Microsoft Technology Licensing. “Jearwon is a leader in the industry producing a RemoteFX ASIC acceleration system on a chip, and we are excited to collaborate with them.”

Microsoft’s commitment to licensing IP

The patent agreement is another example of the important role intellectual property (IP) plays in ensuring a healthy and vibrant technology ecosystem. Since Microsoft launched its IP licensing program in December 2003, it has entered into more than 1,200 licensing agreements. More information about Microsoft’s licensing programs is available at http://www.microsoft.com/iplicensing.

About Jearwon Microelectronics

Jearwon Microelectronics is headquartered in Changchun, China. Our international team includes founder and CEO Huang Wei who has over 20 years of experience in electronic product development and manufacturing management, and International Operations Manager Kerron Ramnath who has over 15 years of experience in the technology sector in USA, the UK and China. Our partners include Microsoft, Amkor Technology, SMIC and Lucida Technology. Jearwon delivers the technology of the future.

For more information, please visit: http://www.jearwon.com  

About Microsoft Technology Licensing

Microsoft Technology Licensing LLC was formed in 2014 to acquire, manage and license Microsoft’s patent portfolio.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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postheadericon Microsoft announces cloud services, developer tools and productivity extensions for every developer

SAN FRANCISCO — March 31, 2016 — Thursday at Build 2016, Scott Guthrie, executive vice president of the Cloud and Enterprise Group, and Qi Lu, executive vice president of the Applications and Services Group, demonstrated how Microsoft Azure services and the Office platform can empower developers to more easily leverage advanced analytics, machine learning, emerging cloud development models and the Internet of Things (IoT) to build their intelligent apps. Microsoft also announced new free development tools to help every developer more easily scale their apps for every platform and reach the largest possible number of customers. Steven Guggenheimer, corporate vice president of Developer eXperience, delivered the final Build keynote address to showcase how partners are innovating using Azure, Office and Windows.

“Microsoft is the only cloud vendor that supports the diverse needs of every organization and developer — from core infrastructure services to platform services and tools to software-as-a-service — for any language, across any platform,” Guthrie said. “With 30 regions worldwide — more than every major cloud provider combined — Azure’s massive scale means developers and businesses alike can focus on creating the next generation of amazing applications, not their underlying cloud infrastructure. This makes our cloud the de facto choice for enterprises of today and tomorrow — and today, more than 85 percent of the Fortune 500 agree.”

“In terms of reach, Office is one of the few platforms in the world that provides developers with access to over a billion users across a variety of devices,” Lu said. “The opportunity to build on the Office platform has never been greater. With new extensions and new connections to the Microsoft Graph — an intelligent fabric that applies machine learning to map the connections between people, content and interactions across Office 365 — developers are empowered to build intelligent apps that can transform the landscape of work.”

The intelligent cloud to help developers build their next intelligent app

Guthrie announced on Thursday that Microsoft is helping developers more easily build native cross-platform mobile applications by including Xamarin’s capabilities in Visual Studio Community and also making Xamarin Studio for OS X free as a community edition. In addition, Visual Studio Enterprise subscribers will now have access to Xamarin’s advanced enterprise capabilities at no additional cost. The company also announced a commitment to open source the Xamarin SDK, including its runtime, libraries and command line tools, as part of the .NET Foundation in the coming months.

With these announcements, Microsoft extends its commitment to offering choice and flexibility to every customer across every platform and device — merging the .NET and Xamarin ecosystems together to provide an unmatched mobile development and DevOps experience. Now developers can deliver fully native cross-platform mobile app experiences to all major devices, including iOS, Android and Windows.

Guthrie also announced several new Azure services designed to help developers address today’s operational realities and take advantage of tomorrow’s emerging trends, such as the Internet of Things and microservices. These new capabilities are designed to make Azure the best platform to build the next intelligent app — on Linux or Windows using any language:

  • The general availability of Azure Service Fabric, a microservices application platform developers can use to design apps and services that are available 24×7 at cloud scale. Battle-tested supporting Microsoft cloud services, Service Fabric seamlessly handles application lifecycle management for constant uptime and easy application scaling. Also today, Microsoft announced previews of Service Fabric for Windows Server, for deploying on-premises and other clouds, and Service Fabric for Linux and Java APIs, and said it would open-source the programming frameworks of Service Fabric for Linux later this year.
  • A preview of Azure Functions that extends Azure’s market-leading platform services to serverless compute for event-driven solutions. Functions lets developers easily handle tasks that respond to events common in Web and mobile applications, IoT, and big data scenarios. Functions works with Azure and third-party services, automatically scaling out to meet demand and only charging for the time functions run. With an open source runtime, developers will be able to host Functions anywhere — on Azure, in their datacenter or on other clouds.
  • New Azure IoT Starter Kits available for purchase Thursday. These kits allow anyone with Windows or Linux experience to quickly build IoT prototypes that leverage all Azure’s IoT offerings, for just $ 50 to $ 160. In addition, early adopters can now use the Azure IoT Gateway SDK, which enables legacy devices and sensors to connect to the Internet without having to replace existing infrastructure, as well as device management in Azure IoT Hub to maintain and manage IoT devices at cloud scale.
  • A preview of Power BI Embedded, which allows developers to embed fully interactive reports and visualizations in any application, on any device. Guthrie also disclosed that applications can now easily communicate with the fully managed Azure DocumentDB NoSQL service, using existing Apache License MongoDB APIs and drivers.

The Office developer opportunity: unprecedented users, data and intelligence

Microsoft’s Lu, along with Office partners Starbucks Corp., MDLIVE Inc. and Zendesk Inc., showcased how developers can use the Office platform to create new business opportunity and closer customer connections.

Starbucks CTO Gerri Martin-Flickinger showed how Starbucks is developing an Outlook add-in that allows people to send gift cards within Outlook and schedule meetings at nearby Starbucks locations.

“We’re always looking for new ways to engage with our customers outside our stores,” said Martin-Flickinger. “Our work with Office is opening up new opportunities for us to connect with our customers and save them time when they want to combine coffee with meetings. Building on the Office platform is reaching our customers right on their desktop or device and extending the Starbucks Experience to them in new and compelling ways.”

The Microsoft Graph, made generally available last fall, offers developers unified access to insights about how workers can be more productive. Microsoft previewed six new APIs for the Microsoft Graph that let developers link Office 365 data to third-party solutions. For example, one extension automatically compiles and exposes a list of times a group of people are available to meet, making it easier to work across organizations.

Lu also shared how conversational interaction will evolve in the future and how developers can immediately start building apps that engage users in meaningful conversations. The new Skype for Business App SDK and Skype Web SDK announced Thursday allow companies to integrate Skype calls directly within their Web or device offering, greatly enhancing the service and connection they can provide to their customers.

The company also showed off new functionality that lets developers build apps and place them directly into Word, Excel and PowerPoint ribbons.

Finally, the developer portal for Office 365 Connectors is now available for developers to write and publish their own connectors. Connectors deliver relevant content, such as updates on financial records or helpdesk logs, from popular apps and services directly into Office 365 Groups conversations. The developer portal is launching with connectors such as Asana, Salesforce, Trello, Twitter, UserVoice, Zendesk and many more.

Developers and partners innovate on Windows, Azure and Office

  • Steve Guggenheimer, Microsoft corporate vice president and chief evangelist, and John Shewchuk, a technical fellow and the “chief geek” for the Developer Experience (DX) team, demonstrated how partners are building on Microsoft’s platforms. As the actor Kevin Hart helped highlight in their opening video, everyone wants to be a developer these days. Guggenheimer and Shewchuk showed a few of the most interesting scenarios, tools and frameworks that developers have been working on recently with Microsoft.
  • Muzik LLC’s new SDK turns Muzik’s headphones into a platform. Developers can take advantage of the wide variety of sensors in the headphones to create apps for Windows, iOS and Android devices.
  • Highspot demonstrated support for the Office 365 Graph and Add-in model, along with embeddable Power BI, as well as intended support for Microsoft Bot Framework, announced at the Build opening keynote.
  • Rita Zhang, a developer in DX, helped show how easy it is to take an existing Spring-based Java application and move it to Microsoft Azure using Pivotal Cloud Foundry. The demo also showcased investments Microsoft has been making to support an S3Proxy for Microsoft Azure Storage through support for the Microsoft Azure Java SDKs.
  • New Microsoft Edge extensions partners were announced, including Pinterest, Reddit Enhancement Suite, Adblock, Adblock Plus, LastPass, Amazon Assistant, Evernote Corp., and Page Analyzer, powered by Vorlon.js.
  • Square Enix Inc. and Io-Interactive AS have begun to use Azure for enabling next-generation gaming in “Hitman.”
  • Vuforia’s Augmented Reality SDK for the Windows 10 Universal Windows Platform supports Windows 10 devices, including Microsoft HoloLens.
  • Xbox partners such as Nickelodeon, Dailymotion, NASCAR and Hulu LLC announced plans to bring Windows 10 Universal Windows apps to Xbox One later this year.
  • A collaboration between the Quest Institute Inc. and Microsoft provided the first Windows IoT implementation in space. Three students from Valley Christian Schools in San Jose, Calif., demonstrated their experiment, which will run on the International Space Station and test the pliability of metals.

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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