Dear Friends,

Microsoft® closed their 2016 fiscal year with better than expected financial results as they appear to be transitioning to becoming a services company with minimal impact on earnings. It’s worth noting that the expectations had been lowered in anticipation of declining sales of perpetual Office and Windows®, but earnings were still up slightly from the same period a year ago. 

 

Revenue from Azure®, Microsoft’s cloud platform, more than doubled during the past year, while Office 365™ commercial grew by 54% during the most recent quarter.

 

We expect these trends to continue as Microsoft is applying tremendous pressure to move users to the cloud. We’re also seeing an increase in software licensing audits as they look for ways to fill the revenue void which has been caused by declining PC sales. It’s too soon to determine how the $26 billion LinkedIn™ acquisition will impact the numbers, but since it’s yet another cloud based service we’re confident Microsoft is diligently working to fit it into their business model.

 

News

Analysis of Microsoft’s® 4th Quarter FY 2016 Earnings Report from a Licensing Perspective

07.21.2016

By: Daryl Ullman

Microsoft® reports earnings in three operating segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

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SQL Server® 2016 Released

The highly anticipated release of Microsoft’s® newest flagship database product is now available. SQL Server® 2016 is the eleventh major version of the popular operational database and by some accounts, it’s the most significant.

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Microsoft® Security Intelligence Report

We are all painfully aware of the seemingly endless threats to our digital data, security and privacy. Predicting, identifying and defending against these threats requires a major, cooperative effort on the part of people, organizations and governments around the world.

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Microsoft® Software Inventory Logging Aggregator (SILA)

I often find myself engaged in discussions about proactive Software Asset Management (SAM). Many organizations fail to make it a priority until it’s time to true-up/renew their software licenses or when they receive an audit notification.

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Microsoft® Planner

Microsoft® recently released a new project management application called Planner. Microsoft Planner is a component of Office 365™ Enterprise E1-E5, Business Essentials, Premium and Education, and is intended to compete with Trello™, Slack and Asana™.

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County to Pay Microsoft® $283K for SW Licensing Violations

I have often written about how to prepare for or mitigate after a software licensing audit. We work with clients every day who are being audited, but I would obviously never share the details or outcome of specific client engagements.

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New Certifications for Azure™ Government and AWS® Planner

Few would dispute that cloud computing is one of the most significant IT paradigm shifts during recent years. Huge server farms are replacing traditional on-prem datacenters and the economies of scale enable third parties to replace, or at least supplement, many traditional IT resources.

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