Microsoft and Intel face different hurdles in cloud

May 4, 2016

MS+IntelFnancial results from Microsoft Corp and Intel Corp this week brought into sharp relief the challenges the onetime PC partners face as they shift more of their emphasis to cloud computing. Microsoft has seen strong long-term growth in parts of its cloud business, a combination of services and software catering to corporations moving computing functions to remote data centers run by outside providers.
While revenue for its flagship cloud services business Azure more than doubled last quarter, the company said in Thursday’s earning report, the “intelligent cloud” division that includes it saw just 3% revenue growth in the period. And operating profits for the division dropped by 14%, in part reflecting non-cloud products included under its umbrella, such as traditional server software. Source: Reuters

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