Satya Nadella Says Azure Search, Also Used By ChatGPT, Is 'One of the Fastest-Growing Services'
Microsoft Corp MSFT CEO Satya Nadella recently discussed the demand environment for Microsoft’s Azure cloud services during the third-quarter earnings call. Nadella emphasized the strong demand for Azure, particularly in the realm of artificial intelligence (AI). He highlighted Azure's pivotal role as a go-to platform for AI projects, attracting new customers and driving growth.
Trends in Azure's Demand
Nadella pointed out three significant trends Microsoft is observing in Azure from a demand perspective. He mentioned the increasing adoption of AI in projects, the growth of adjacent services within Azure, and the ongoing migration to Azure with a focus on continuous optimization.
Specifically, Nadella highlighted the importance of Azure Search, noting that it is one of the fastest-growing services for Microsoft. He mentioned its integration with Fabric to Azure AI and Cosmos DB, showcasing the platform's strength in the data tier and dev tools segment.
Financial Performance
Microsoft’s third-quarter revenue showed an impressive 17% year-over-year increase, reaching $61.9 billion, surpassing analysts' expectations. The tech giant reported quarterly earnings of $2.94 per share, outperforming analyst estimates.
Market Position and Future Growth
In a comparison with Amazon Web Services (AWS), analysts reported that Microsoft’s Azure cloud infrastructure is rapidly gaining ground. Azure's revenue growth is projected to accelerate, potentially reaching $95 billion within two years, showcasing a bright future for investors and stakeholders.
Stock Performance
At the time of writing, Microsoft shares were up 4.31% in after-hours trading at $416.25, following a slight decline in regular trading. Microsoft's positive outlook and strategic positioning in the cloud services market have contributed to its stock performance.
Overall, Satya Nadella's insights during the earnings call highlight Azure's pivotal role in driving Microsoft's growth, particularly in the field of AI and cloud services.
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