Xinhua News Agency, Beijing, July 24. The "Economic Information Daily" published a report written by Yan Lei on the 24th, "The demand for cloud computing under the epidemic is increasing, and the performance of technology companies is supported." The full text is as follows:
Affected by the new crown pneumonia epidemic, many companies have accelerated the process of digital transformation, and demand for cloud computing and other related businesses has greatly increased, which has supported the performance of technology companies such as Microsoft and IBM.
Microsoft's financial report announced on the 22nd showed that sales for the fourth fiscal quarter of 2019 as of June this year increased by 13% to 38 billion U.S. dollars, and net profit was 11.2 billion U.S. dollars. Microsoft's cloud computing service Azure sales increased by 47% year-on-year, and the intelligent cloud business (including Azure services) achieved revenue of $13.37 billion, a year-on-year increase of 17%.
Microsoft CEO Nadella said: "The situation in the past five months clearly shows that technological intensity is a key factor for companies to maintain resilience. Organizations that can build their own digital capabilities will recover faster from this crisis and become More powerful."
IBM's recent financial report shows that cloud computing business revenue in the second fiscal quarter increased by 30% to 6.3 billion US dollars, much higher than other business lines. Currently, more than one-third of the company's revenue comes from related cloud businesses, including the open source software unit Red Hat, which has an 18% increase in revenue. IBM CEO Kirschner said that this quarter has had a significant impact on accelerating the digital transformation.
An article published in The Wall Street Journal pointed out that after the outbreak, companies have arranged for employees to work remotely and use related equipment, and cloud computing business has grown rapidly in the early stages of the epidemic. As competitors of Microsoft's cloud computing business, Amazon and Google will announce their earnings next week. Amazon currently holds the highest share of the cloud computing market.