Link: Microsoft milestone: Tech giant’s cloud revenue now matches traditional products, analyst says

“We estimate that FY 4Q 19 was the first time MSFT generated as much revenue from running software in its own data centers, including cloud offerings like Azure and Office 365, as well as LinkedIn, Bing, GitHub and Xbox-Live, as it did from software licenses and upgrades, hardware and professional services,” according to the note from CFRA’s John Freeman.

Source: Microsoft milestone: Tech giant’s cloud revenue now matches traditional products, analyst says

Link: This is the Amazon everyone should have feared — and it has nothing to do with its retail business

“the massive online retailer once again posted its largest quarterly profit in history — $2.5 billion for the quarter — on the back of two businesses that were afterthoughts just a few years ago: Amazon Web Services, its cloud computing unit, as well as its fast-growing advertising business.”

Good charts, too.
Original source: This is the Amazon everyone should have feared — and it has nothing to do with its retail business

Link: Micro Focus belches as it struggles to digest HPE Software • The Register

“Operational difficulties fed into the financial results for Micro Focus’s half-year ended 30 April 2018 with sales down 8 per cent year-on-year to $1.974bn. Nearly all of the revenue lines were down with the exception of subscription and SaaS.

Licence sales dropped 18.4 per cent to $396.4m, maintenance was down 3.5 per cent to $1.109bn, and consulting dropped 27.5 per cent $149.9m.”

Also, SUSE revenue: “The top line number included an $182.9m contribution in sales from SUSE, which Micro Focus is offloading to a private equity biz for $2.53bn, and was 17.2 per cent higher than a year earlier.”
Original source: Micro Focus belches as it struggles to digest HPE Software • The Register

Link: Galloping greenback rocks Red Hat

“30 per cent growth in emerging technologies came in part from 100 new customers signing up for the company’s OpenShift container platform…. The company’s services business grew nicely and president and CEO Jim Whitehurst proudly pointed out that Red Hat now has over 1,000 subscribers, up 70 per cent year on year.”

And:

“The company also admitted to some weakness in its middleware business, but Whitehurst said that should turn around as sales of OpenShift pick up because it needs middleware. However Shander said Oracle and IBM are discounting middleware by 98 per cent “or whatever it takes to hold onto that tail of the business”, making the field hard.’
Original source: Galloping greenback rocks Red Hat

Link: As it shifts cloud focus to platform services, Oracle tries to hold on to its database legacy

‘“the way Oracle plans on differentiating itself from Amazon is by offering a complete suite of platform services at a higher level than infrastructure services,” Ellison said. Open-source databases like MySQL and MongoDB have become very popular with developers in the cloud era, but there are still lots of companies running Oracle databases on their own hardware as well as companies that want to maintain application compatibility with Oracle but through Oracle’s cloud services.’
Original source: As it shifts cloud focus to platform services, Oracle tries to hold on to its database legacy

Link: Red Hat is in the pink: Cracks $3bn revenue run rate as subs take off

“Full fiscal year subscription revenue hit $2.6 billion, up 21 per cent year-over-year”
Original source: Red Hat is in the pink: Cracks $3bn revenue run rate as subs take off

Link: VMware might just have cracked the container market with NSX

“But perhaps the most significant news was that VMware has started to see customers buy its NSX network virtualization software just to put it to work with the Pivotal Container Service.”
Original source: VMware might just have cracked the container market with NSX

Link: VMware might just have cracked the container market with NSX

“But perhaps the most significant news was that VMware has started to see customers buy its NSX network virtualization software just to put it to work with the Pivotal Container Service.”
Original source: VMware might just have cracked the container market with NSX

Link: The New HPE Sheriff Lays Down The Hybrid IT Law

“The larger problem, as we have pointed out before, is that it is very difficult to make a buck in the server, storage, and networking business with so many big buyers pushing down prices, enterprises shifting some compute from their own datacenters to public clouds (and therefore some of their budgets from capex to opex), and so many companies competing to sell wares to datacenters.”
Original source: The New HPE Sheriff Lays Down The Hybrid IT Law

Link: Dropbox S-1 Analysis – The King of Freemium

“Founded in 2007, Dropbox epitomizes the freemium go-to-market. Dropbox has grown from 0 to 500 million users over that time period. 2% of those users convert to paid and pay an average of $9.33 per month. 90% of revenue originates through self serve channels – an astounding figure for company that generated more than $1B in revenue last year.”
Original source: Dropbox S-1 Analysis – The King of Freemium

Link: Dropbox IPO and financials

“Dropbox made $1.106 billion in revenue in the year ending in December, and lost $111.7 million on a net basis. That was growth of 31% in revenue terms, and an improvement on the bottom line of roughly half the year-earlier losses.”
Original source: Dropbox IPO and financials

Link: ‘Amazon-proof’ Home Depot builds on its DIY digital foundations

“Versus prior year, our online sales grew 21% in the fourth quarter and 21.5% in fiscal 2017, now representing 6.7% of our total sales. While we are seeing significant growth in our online sales, these online shoppers see the relevance of our stores as approximately 46% of our online U.S. orders are picked up in our stores”
Original source: ‘Amazon-proof’ Home Depot builds on its DIY digital foundations

Link: New Relic CEO Lew Cirne – “Digital is the new front door” for business

“For its third quarter non-GAAP operating income was $2.7 million compared to an operating loss of $4.9 million for the same period last year. Revenue was $91.8 million for the third quarter, up 35% year-over-year.”
Original source: New Relic CEO Lew Cirne – “Digital is the new front door” for business

Link: Microsoft results show a distributed computing future

“The company reported 98% Azure revenue growth this quarter and commercial cloud revenue growth of 56% year-on-year to $5.3bn. The shift to Office 365 recurring revenue is also beginning to pay off, with the company reporting a 41% increase in Office 365 commercial revenue from installed base growth.”
Original source: Microsoft results show a distributed computing future