Currently, in the world of business, there is a fascination with technology that allows for increased attractiveness among customers, employees, and investors. For ERP providers, this means the necessity of investing in technological innovations such as artificial intelligence. But how can one safely invest in research and development during times of uncertainty caused by inflation, war, and political tensions?
When choosing an ERP provider today, special attention should be paid to their financial situation and the ability to turn plans into concrete actions. Looking at the recent financial results, Microsoft seems to be a very good choice in this regard.
Results driven by the cloud
In the fourth quarter of 2023, Microsoft reported earnings per share of $2.69 with revenues of $56.2 billion (an 8 percent increase), surpassing analyst estimates. Annual revenues amounted to $211.9 billion (a 7 percent increase), with earnings per share of $9.68. The full-year operating income was $88.5 billion, indicating a 6 percent growth.
"We certainly closed the fiscal year on the strength of our quarterly Microsoft Cloud revenue of $30.3 billion, representing a 21 percent year-over-year increase," said Amy Hood, Executive Vice President and Chief Financial Officer of Microsoft. The Microsoft Cloud category broadly includes Azure, Office 365, Linkedin, and Dynamics 365.
Quarterly revenue from Azure and other cloud tools increased by 26 percent. Overall, the Intelligent Cloud segment grew by 17 percent, generating $24 billion. Products and services from the Dynamics family grew by 19 percent in the fourth quarter of 2023, with cloud solutions revenue from Dynamics 365 growing by 26 percent. In the previous quarter, revenue from Dynamics grew by 17 percent, and the year before by 19 percent.
The future belongs to artificial intelligence
"Organizations are asking us not only how, but more importantly, how quickly they can deploy the next generation of AI to safely leverage it in the biggest opportunities and challenges they face," said Microsoft CEO Satya Nadella. "We are leading the change and continue to focus on developing a new AI platform. We help customers make the most of Microsoft Cloud to get the greatest value from their digital investments and achieve competitive advantage."
If you are looking for a financially stable and sufficiently innovative provider to lead your organization into the future, Microsoft should definitely be on your list.
