Microsoft CEO Satya Nadella Says, Public Cloud Will Be ‘The Big Winner’ In Down Economy

The CEO of Microsoft, Satya Nadella, believes that a weaker global economy is an opportunity to demonstrate the value of the public cloud, despite the fact that cloud suppliers have finally acknowledged that a sluggish economy has affected their profits.

According to Nadella, on Microsoft's most recent quarterly earnings call, public cloud enables Microsoft customers to control ramping up and ramping down based on demand, which may also help customers with rising energy prices.

From a customer's standpoint, moving to the cloud is the best method for them to align their spending with the ambiguous demand,

While Microsoft's CFO Amy Hood handled the majority of the negative financial news during the company's earnings report for the first quarter of its 2023 fiscal year, which ended on September 30, Nadella still had a number of measures to demonstrate the company's expansion with both old and new products.

According to Nadella, Azure Arc has more than 8,500 clients, more than twice as many as a year ago. For four consecutive quarters, the revenue from Azure Machine Learning has climbed by more than 100%. More than 90 billion individuals use GitHub, which generates $1 billion in annual recurring income. At least three investment banks expressed belief in Microsoft's potential in the long run.

Wedbush stated in a report on Wednesday that “Our thesis remains that the cloud and underlying Office 365/Windows ecosystem is going to comprise a bigger and bigger piece of Redmond going forward and will ultimately spur growth and margins (and the multiple) into FY23/FY24 despite this downturn,”  

 “Our conversations with customers and partners underscores our confidence that MSFT can ride out this economic storm and ultimately be in a stronger position in the other side with cost cutting and strategic measures already in place.”, it continued.