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Microsoft Cloud is up to 93% more energy efficient than traditional on-premise datacenters: Report

Microsoft Cloud services are up to 93% more energy efficient and up to 98% more carbon efficient than traditional enterprise datacenters, according to a new report “The carbon benefits of cloud computing”.

The report issued by Microsoft in partnership with WSP, a leading consultant company, highlights the potential of Microsoft Cloud in reducing the energy and carbon emissions when compared to on-premises datacenters.

Four cloud applications of Microsoft were considered for the study, which together account for around 50% of the energy consumed in Microsoft datacenters. These applications included Azure Compute, Azure Storage, Exchange Online, and SharePoint Online.

The carbon benefits of cloud computing

“The world is producing more data than ever, making our infrastructure decisions about how to power this digital transformation incredibly important,” said Brad Smith, president and chief legal officer, Microsoft. “Today’s report confirms what we’ve long believed — that investing in sustainability is good for business, good for customers and good for the planet.”

With the rise in use of cloud computing around the world, the energy consumption in cloud is also increasing. Datacenters in US alone consume around 70 billion kilowatt-hours (kWh) of electricity every year, which is 1.8% of the total electricity consumed in the country.

It is expected that datacenters in US will consume 73 billion kWh of electricity by 2020, which is equal to the energy used by 6 million homes in US per year. It will be a high amount of electricity consumption, and cloud and datacenter providers need to optimize their services.

The key attributes to energy and carbon savings in Microsoft Cloud were the company’s significant investment in IT operational efficiency, IT equipment efficiency, datacenter infrastructure efficiency, and renewable electricity.

Microsoft said that it designed faster and more efficient chips that could do more using less energy, and invested significantly in renewable energy projects in three continents.

Also read: Microsoft and Red Hat bring OpenShift to Azure as a jointly managed service

As per Cisco GCI report, global cloud traffic will nearly triple over the next five years, accounting for 95% of total datacenter traffic by 2021. Hence, Microsoft said that it will continue to measure and manage the environmental impact of its cloud service offerings.

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Microsoft’s hiked quarterly earnings confirm its booming cloud business

Microsoft disclosed its earnings report for FY17 Q4 for the month ending June 30, 2017.

Surpassing analysts’ expectations, Microsoft recorded a revenue of $23.3 billion GAAP and $24.7 billion non-GAAP. This was higher than the Wall Street’s anticipation of $24.3 billion. It further reported an operating income of $7.0 billion non-GAAP.

Its intelligent cloud revenue grew 11 % year-over-year to $7.4 billion.

Microsoft CEO – Satya Nadella, said that innovation across company’s cloud platforms is a major reason behind the revenue hike.

He said, “Customers are looking to Microsoft and our thriving partner ecosystem to accelerate their own digital transformations and to unlock new opportunity in this era of intelligent cloud and intelligent edge.”

Apart from Azure, Office 365 also recorded a good performance with Office consumer products and commercial products increasing by 13% and 5% respectively.

Other products like Windows OEM recorded a 1% (up 1% in constant currency) increase in revenue, which is a bit ahead of the overall PC market.

Surface revenue decreased by 2% (1% in constant currency), supposedly due to product life-cycle transition.

Company’s gaming console unit also reported good revenue increase due to strong products like Xbox.

The increased revenue is a clear indicator of company’s constant efforts to evolve digitally.

The recently held Microsoft Inspire also focused on the same vision – to invest in areas that drive success for both Microsoft and its customers with products like Microsoft 365.

On top of the Q4 earnings report, Microsoft also revealed the results for the full financial year 2017. The company earned non-GAAP revenue of $96.7 billion for the twelve months ending on June 30, and a net income of $25.9 billion.

Event News

DHN team at Microsoft Inspire – here’s what partners can expect this year

Microsoft’s biggest partner event – Microsoft Inspire, began yesterday with a welcome reception.

DHN team present at the event saw a huge gathering of people coming from globally spread regions.

The event formerly known as Worldwide Partner Conference is being held at the Walter E. Washington Convention Center, Washington, D.C. from July 9-13, 2017.

Since its inception, the event has been on the must-attend list of current and prospective Microsoft partners, employees and industry experts.

Many elite partners are here to connect and collaborate with the global-scale Microsoft community and IT leaders like BitTitan, Dell EMC, Huawei, Ingram, Veeam, Samsung Intel etc. to name a few.

After a welcome reception held yesterday between 5:00 PM to 7:00 PM ET, now the attendees are looking forward to the vision keynotes that’ll begin today from 8:45-10:45AM ET lead by ace speakers Satya Nadella – Microsoft CEO, Judson Althoff, Ron Huddleston, Toni Townes-Whitley, Gavriella Schuster, Brad Smith and many others.

As per the industry reports, the keynote sessions will have digital transformation at the core. Various workshops will be conducted around Microsoft’s highly efficient cloud platform – Azure. Partners can expect a guided tour through company’s hybrid cloud platform, Azure Stack, Windows Server containers and other hybrid management techniques to successfully drive digital transformation.

With a global set of attendees, the conference will see big networking exchanges through The Commons with live demos by exhibitors. This will help the attendees connect on various topics related to Artificial Intelligence, IoT, security, privacy and more.

Our team went to several booths and saw different products and solutions that were exhibited.

Those who will not be physically present at the event can watch the live keynotes session digitally from July 10-12 from 8:45 AM to 10:45 AM ET.

The event will wrap up with a partner celebration at Nationals Park in Washington D.C. on 12th July by Grammy Award winner – Carrie Underwood.

Overall, it will be the perfect combination of learning, networking, partnership exchanges and collaboration.
Stay tuned for live updates.



Microsoft share prices to touch new highs with digital transformation wave, predicts Morgan Stanley

Morgan Stanley Analyst – Keith Weiss, in his recently published note, projected high price target for Microsoft Corp. stock which reportedly increased from $80 from $72.

Microsoft stock price has been performing well right from the beginning of the year 2017, recording shares go up to 13.5 percent high so far this year.

Also Read: Microsoft records High profits due to web-based business software

Microsoft is back to showing durable double-digit EPS growth — and investors should be willing to pay a higher multiple for that growth,” said Keith in a note.

Microsoft’s business will rise due to the changing technology trends in computing, and AI (Artificial Intelligence). Due to the high demand of Microsoft’s Cloud computing platforms, analyst predicts that the company will perform ahead of the expectations next year.

Microsoft’s “top line drivers include the Azure (Microsoft emerging as a public cloud winner), data center (share gains and positive pricing trends), and O365 [Office 365] (base growth and per user pricing lift).” Weiss added further in his note.

Weiss presented three arguments in favor of his statement that showed why investors should expect company’s upward trajectory – I) High Market performance surpassing other companies, trading at a premium of 16%, II) High performing cloud, Office 365 along with non-cloud products like Xbox, Bing, Surface and machine-learning platforms, III) Better positioned than its peer companies due to steady and free cash flow.

He estimated an EPS (Earnings per Share) of $3.45 for Microsoft in the 2018 fiscal year as compared to Wall Street agreement for $3.32.

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New Market Opportunities for Entry Level Cloud MSPs with Increased Cloud Migration

New market opportunities to emerge for entry-level cloud MSPs with increasing migration to the cloud, as per a 451 Microsoft commissioned research that was unveiled in Microsoft Hosting and Cloud Summit 2017 at Bellevue, last month.

Public cloud spending is expected to reach $500B by 2020 as per the IDC CloudView 2016 Survey,  due to key change drivers like – CTO/IT, EOL technologies, Shadow IT and more. The role of the Private/Hybrid cloud is expected be the most relevant in the coming times. As per a Pulse Gatepoint Research, March 2016, 46% of customers prefer Azure over any other public cloud, with AWS standing at 42%.

All this and more data were revealed through a study called Workload and Application migration to Azure – Your Path to Recurring Revenue at MHS 2017 which discussed about the reasons behind such migrations and how MSPs can make use of this opportunity.

Various factors were identified as being the top triggers for huge Customer Workload migrations like cost reductions from CAPEX to OPEX, DC modernization, increasing DC operational costs, need of modern security for modern day threats, regulatory compliance requirement, and business continuity. Other reasons pointed towards increasing need for business agility, time to value, and issues in managing co-location licenses.

Another Markets and Markets research – Cloud Migration Services Market – Global Forecast 2016-2021, that was discussed, showed the size of the cloud migration market in 2016. Cloud migration market is expected to grow from USD $2.40 billion in 2016 to USD $7.10 billion in 2020.

As per the research, customers who will move their infra or applications on cloud will need help from third party solution providers which is a good news for managed service providers. Azure partners stand to gain by offering Advanced Managed Services (Analytics, IoT, AI), Workload optimization, Cloud workload management services and Assessment and Migration.

Microsoft also introduced “Migration in a Box” tool for boosting up the entire migration process and helping partners conduct successful migration with less complexities. The kit will have complete scoping, roadmap to migration allowing discovery of current servers, applications, and workloads. Partners can access map dependencies, select tools and forecast ROI and deliver actual migration.

Cloud Event Innovation News

Microsoft to Aid MSPs and Cloud Providers to Gain in New Era of Digital Transformation

The 2017 Microsoft Cloud and Hosting Summit that is being held in Bellevue, Washington, is attended by nearly 500 partners from different industry verticals, who are here to explore various opportunities in the digital transformation era.

Aziz Benmalek, Microsoft VP – Worldwide hosting & Managed Service providers, who gave a presentation at the summit, shared findings from a Microsoft commissioned study conducted by 451 Research, in a blog.

The study reveals that huge opportunities exist for Microsoft cloud partners to aid customers with managed services and implementations in the hybrid cloud in the era of digital transformation.

More than ever before, customers are looking to a single trusted advisor to provide transformation-oriented managed services and hybrid implementation. Customers are looking to service providers to not only transform IT but also transform their entire business – to rewire the building and support new requirements, all while keeping the lights on.
– Melanie Posey, Vice President, 451 Research.

The service providers have to play a very important role in hybrid solutions implementation and management as digital transformation progresses. Approximately 90 percent of customers that were surveyed are willing to pay a hefty premium to service providers for implementation and management of their hybrid cloud environment.

Also, the survey found that for the third consecutive year, Microsoft Azure is the top choice for hybrid cloud by the users for IaaS platforms. Benmalek says, “At Microsoft, we are working with tens of thousands of partners to joint deliver not only hybrid offerings but a full portfolio of cloud services. We have seen double-digit growth in Hosting & Managed Services over the past five years straight, with no signs of a slowdown.

Microsoft’s 2016 study had revealed that companies rely less on physical infrastructure and more on the digital infrastructure. This trend is visible this year too and ‘beyond infrastructure’ shift is continuing so services will account for 74% of hosting/cloud spend in 2017, up from 71% as reported in 2016. This trend demonstrates increase in the opportunities for service providers.

As per the study, increased hybrid cloud adoption among North American respondents is driven by the factors like choice and flexibility, ability to extend IT resource capacity of infrastructure on-premise, and increased ROI on existing IT investment on infrastructure on-premise, with the ability of using public cloud for new workloads.

But the new hybrid cloud environment is more complex and therefore, the customers are relying on service providers for managing these services.

Managed services are becoming king. Customers are looking for service providers to run the whole stack for them,” Benmalek said.

The service providers who are going to benefit as per the research would be hosting providers, security service providers, IaaS providers, system integrators and other IT MSPs. As per the 451 research and Microsoft, 57 percent of respondents said that they would be relying on a managed hosting provider or an MSP, 54 percent on IaaS provider of public cloud, 53 percent on security service provider and 51 percent would rely on an IT outsourcing or consulting or system integrator for help in their multi-cloud or hybrid cloud journey.

Regarding hybrid cloud vendors, 39 percent of the respondents said that they would like to buy hybrid cloud by obtaining different services from multiple vendors and 36 percent voted to go for a single service provider who can provide an integrated solution of multiple vendors.

In 2016, the most sought after managed services included archiving; backup and recovery; CDN and managed networking; disaster recovery; and monitoring and alerting services. This year too, the services will be the same but will include round the clock support services from the service providers.

Also, enterprises will be seeking professional services in helping them realize digital transformation goals, including modernization of applications and integration of traditional systems and business processes with SaaS capabilities.

Read more about Microsoft Cloud and Hosting Summit here.