A Reuters report – by Sarah McBride — today said the shift to Cloud is posing different challenges to Intel and Microsoft.
ALSO READ the Reuters report: Intel and Microsoft face different challenges in shifts to cloud
While revenue for Microsoft’s 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 percent revenue growth in the period. Operating profits for the division dropped by 14 percent, in part reflecting non-cloud products included under its umbrella, such as traditional server software.
Chipmaker Intel has a less clear path to growth for its cloud operations.
Clients are spending a larger part of their technology budget on software, according to Gartner. Intel’s customer base for data-centre chips is consolidating into a few big companies, including Facebook, Google, Amazon and Microsoft itself, from a much wider group.