Cloud computing helps power strong Microsoft quarter

SAN FRANCISCO, United States - Microsoft on Tuesday reported strong quarterly earnings, powered by demand for cloud computing.

The tech titan said it made a profit of $16.7 billion on revenue of $49.4 billion in the first three months of this year, eight percent and 18 percent, respectively, more than in the period a year earlier.

"Going forward, digital technology will be the key input that powers the world's economic output," said Microsoft chief executive Satya Nadella.

"Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less."

Microsoft shares rose more than four percent to $282.44 on the earnings figures, which came with an optimistic outlook for the current financial quarter.

Revenue in the company's "intelligent cloud" unit that meshes datacenter-hosted software with artificial intelligence surged from the same period a year earlier, Microsoft reported.

"Continued customer commitment to our cloud platform and strong sales execution drove better-than-expected commercial bookings growth" along with cloud computing revenue, Microsoft chief financial officer Amy Hood said in the earnings release.

The pandemic accelerated a shift to relying on the internet for work, education, shopping, socializing and entertainment, with Microsoft seemingly positioned to benefit from lifestyle changes that will remain even as people return to being out and about.

A business and productivity unit at Microsoft that includes its online suite of Office 365 software saw revenue grow with the help of a 34 percent increase in money taken in by career-focused online social network LinkedIn, the earnings report showed.

"Growth for LinkedIn was the most surprising," CFRA equity research vice president John Freeman told AFP.

"LinkedIn continued to be Microsoft's lower profile success story. That acquisition is looking better and better every year and every quarter."

Microsoft bought LinkedIn for slightly more than $26 billion in 2016.

Money taken in for content and services at Microsoft's Xbox video game division rose four percent in the recently ended quarter as the company works to beef up its cloud-based games subscription offering.

Microsoft is seeking regulatory approval for its $69 billion deal to buy video game powerhouse Activision Blizzard.

Merging with troubled Activision will make Microsoft the third-largest gaming company by revenue, behind Tencent and Sony, it said, a major shift in the booming world of games.

Activision, the California-based maker of "Candy Crush," has been hit by employee protests, departures, and a state lawsuit alleging it enabled toxic workplace conditions and sexual harassment. 

"Acquiring Activision will help jump start Microsoft's broader gaming endeavors and ultimately its move into the metaverse with gaming the first monetization piece of the metaverse in our opinion," Wedbush analysts said after the news broke.

Agence France-Presse

Microsoft sees cloud business growth, but supply woes continue for Xbox

Microsoft Corp on Tuesday forecast a strong end to the calendar year thanks to its booming cloud business but said supply chain woes will continue to dog key units such as those producing its Surface laptops and Xbox gaming consoles.

The company beat Wall Street expectations for its first quarter ended Sept. 30, with pandemic-induced demand for the software giant's cloud-based services driving sales.

Contracts for cloud services provided by Microsoft, Amazon.com Inc's AWS and Alphabet Inc-owned Google Cloud have surged since last year when the COVID-19 pandemic shut offices and schools, pushing more activity online.

First-quarter revenue growth for Azure, the company's flagship cloud-computing business, came in at 48 percent in constant currency to beat analysts' estimates of 47.5 percent, according to consensus data from Visible Alpha. Amy Hood, executive vice president and chief financial officer of Microsoft, said that the company also expected "broad based growth" for the unit in the fiscal second quarter.

Azure's growth rate is the best direct measure of competition with rivals such as AWS and Google Cloud as Microsoft does not break out revenue from the cloud-computing unit.

Microsoft appeared to hold off Google Cloud's rising challenge. Google Cloud said on Tuesday its revenue surged by 45 percent to $4.99 billion, but failed to live up to estimates of $5.2 billion.

Revenue at the firm's other business units that house Windows software, the Teams messaging service and LinkedIn professional social networking platform also beat analyst expectations.

The supply chain issues affecting much of the global tech industry had mixed consequences for Microsoft.

Hood said Microsoft has continued to increase its cloud computing margins despite higher data center construction costs because it keeps adding more profitable services to those data centers. 

Hood also said that the company was able to ship more Xbox S and X gaming consoles than it expected in the first quarter - sales of gaming consoles and accessories were up 166 percent as the company continued to see strong demand for new models after the pandemic forced millions to seek entertainment at home.

But Microsoft and its rivals have been unable to keep up with demand because of the global chip crunch. Hood told Reuters the company expects Xbox demand to continue to exceed supply in the company's second quarter, which includes Christmas.

She also said that sales of the company's Surface computers, which declined 17 percent in the fiscal first quarter, were likely to keep sinking in the second quarter, with supply chain shortages hitting premium items in the lineup.

Microsoft's revenue from selling Windows to PC makers grew 10 percent year over year, beating the overall PC market, which only grew 3.9 percent over the same period because of supply constraints, according to data from IDC.

Hood said that the company was able to outperform in the PC market because of its strength in selling licenses for Windows destined for corporate customers, where it gets more revenue per license and has better market share.

Overall, revenue rose 22 percent to $45.32 billion in the first quarter ended Sept. 30, beating expectations of about $43.97 billion.

Net income rose to $20.51 billion, or $2.71 per share. The company said its results included a $3.3 billion net income tax benefit.

On an adjusted basis it earned $2.27 per share, trumping analyst expectations of $2.07 per share.

For the fiscal second quarter, Microsoft predicted a midpoint of $18.23 billion in revenue for its intelligent cloud business for the fiscal second quarter, above estimates of $17.84 billion, according to Refinitiv data.

First-quarter revenue from "Intelligent Cloud" surged 31% to $17 billion. Analysts had expected a figure of $16.58 billion, according to Refinitiv data.

Microsoft's forecast for its software app and Windows centric segments with midpoints of $15.83 billion and $16.55 billion, respectively, were also above Refinitiv estimates of $15.40 billion and $15.51 billion.

Shares of the company, which have risen nearly 40 percent this year, were marginally up in extended trading.

-reuters

Microsoft bolsters video game line-up as Xbox turns 20

SAN FRANCISCO, United States - Microsoft unveiled Sunday a batch of new titles for Xbox at the world's premier video game trade show, including award-winning sensation "Hades" and long-time hit "Halo".

The Xbox maker showed off 30 new games coming to its console, which in November will celebrate two decades on the market.

"Our team strives to make Xbox a place where you'll find the greatest games, the most dedicated developers, and the most passionate community," unit chief Phil Spencer said during a streamed event on the second day of a virtual Electronic Entertainment Expo (E3).

Microsoft revealed a coming take of beloved "Halo", along with new creations such as science-fiction action title "Starfield" and a vampire-battling adventure called "Redfall" from Bethesda Softworks.

Microsoft recently-acquired Bethesda Softworks, the maker of hits including "Fallout" and "Elder Scrolls."

As trailers depicted tense battles and the games' rich graphics, Microsoft stressed that all but a few would be available for play at its subscription Xbox Game Pass service.

The company also highlighted titles that will be exclusive to Xbox, which competes with rival consoles Sony PlayStation and Nintendo Switch.

Award-winning "Hades" from San Francisco-based Supergiant is coming to Xbox as well as PlayStation, the independent studio said Sunday.

"Hades" has so far only been available for play on personal computers and Switch.

"Hades", which snagged five honors this year at Britain's prestigious BAFTA Games Awards, is a "dungeon crawler" that challenges players to fight their way through the underworld.

The line-up of new titles comes as Microsoft works on software and a plug-in device to let people play Xbox video games on internet-linked televisions without need of consoles.

"As a company, Microsoft is all-in on gaming," chief executive Satya Nadella said in introducing the plan last week.

Microsoft has been playing on the strength of its Xbox unit as it vies with Luna and Stadia cloud gaming services run, respectively, by Amazon and Google.

In coming weeks, cloud gaming with Xbox Game Pass Ultimate subscriptions will be possible through internet browsers Chrome, Edge and Safari, according to Microsoft.

Many are expected to tune in on the closing day of E3 on Tuesday for a Nintendo streamed event at which it may reveal a new version of its coveted Switch consoles along with showing off new games.

Agence France-Presse

Microsoft buys Canadian AI startup Maluuba

SAN FRANCISCO, California — Microsoft announced Friday a deal to buy Maluuba, a Montreal startup focused on making machines able to think the way people do.

Bringing on board Maluuba co-founders Kaheer Suleman and Sam Pasupalak, along with their team from the startup, was intended to accelerate Microsoft’s “ability to develop software so computers can read, write and converse naturally,” the company said.

Microsoft did not disclose financial terms of the acquisition.

“Maluuba’s vision is to advance toward a more general artificial intelligence by creating literate machines that can think, reason and communicate like humans — a vision exactly in line with ours,” Microsoft artificial intelligence and research group executive vice president Harry Shum said in a blog post.

“I’m incredibly excited about the scenarios that this acquisition could make possible in conversational AI.”

Tech giants Apple, Samsung, Google and Microsoft are all vying to develop the most sophisticated connected assistant — working to give software the ability to understand what people say and even anticipate desires or needs.

Amazon virtual assistant Alexa was a star at the Consumer Electronics Show gadget gala last week in Las Vegas.

Amazon and Alexa face fierce competition.

At CES, computer chipmaker Nvidia said it would use Google Assistant for its interactive streaming devices. Microsoft’s Cortana will power a voice-assistant speaker for kids and families being introduced by Mattel, and will also be in Renault-Nissan’s connected car hub.

Samsung’s smart refrigerator, which acts as a connected hub — with a voice activation system unveiled at CES — uses the South Korean giant’s Tizen operating system.

Many smart devices for the home also integrate with Apple Home Kit, which uses the iPhone maker’s artificial intelligence and voice assistant Siri.

At CES, Chinese giant Baidu showcased its own virtual assistant “Little Fish” which will debut in China this year.

source: interaksyon.com

Microsoft opens fourth Transparency Center to cater Latin America

BRASILIA — Microsoft Corp, still stung by accusations that it installed “back doors” for the U.S. government to access customers’ communications, opened a center in Brazil on Wednesday where officials will be able to inspect its programming code, in an attempt to allay suspicions in the region that its software programs are vulnerable to spying.

Behind reinforced walls and with strict security settings, the world’s biggest software company showed off its fourth ‘Transparency Center’ in Brasilia, where experts from Latin American and Caribbean governments will be able to view the source code of its products.

The effort to build trust follows heightened suspicions in the region after former U.S. National Security Agency contractor Edward Snowden leaked documents in 2013 that showed the agency was capturing massive amounts of data from emails handled by major U.S. technology companies, including Microsoft.

The leak, in addition to another Snowden disclosure that the United States had been spying on communications including those of former Brazilian President Dilma Rousseff, prompted Brazil and other governments around the world to reconsider how much they could trust U.S. technology companies not to install back doors at the request of U.S. intelligence agencies.

At the new site, visited on Wednesday by officials including the speaker of Brazil’s Congress, no electronics will be allowed into the secure viewing room.

Microsoft prevents anyone from copying the massive amount of coding on display – as much as 50 million lines for its email and server products. Viewers inspect copies of source code on computers connected only to local servers and cut off from the internet. The copies are later deleted.

Viewers can use software tools to examine the code, Microsoft said, but it was not immediately clear whether experts would be able to run deep code analysis necessary to uncover back doors or other bugs.

It is by no means certain the effort by Microsoft will diminish concerns about spying, but Brazil’s reaction to the generally secretive software company opening up its code was initially positive.

“This center is aimed at showing that there are no traps, it is a good step,” a Brazilian government official, who asked not to be named because he was not authorized to speak about cyber security, told Reuters.

The Brasilia facility is Microsoft’s fourth transparency center after the NSA scandal. It set up the first one at its Redmond, Washington headquarters in the United States in 2014, one in Brussels last year and one in Singapore earlier this month. It will soon open another in Beijing.

The centers allow for face-to-face discussions between government experts and developers. “Governments can verify for themselves that there are no back doors,” said Mark Estberg, senior director of Microsoft’s global government security program.

source: interaksyon.com

Microsoft sells patents to Xiaomi, builds ‘long-term partnership’

Software maker Microsoft Corp is selling about 1,500 of its patents to Chinese device maker Xiaomi, a rare departure for the U.S. company and part of what the two companies say is the start of a long-term partnership.

The deal, announced on Wednesday, also includes a patent cross-licensing arrangement and a commitment by Xiaomi to install copies of Microsoft software, including Office and Skype, on its phones and tablets.

Both companies declined to discuss financial terms of the deal.

“This is a very big collaboration agreement between the two companies,” Wang Xiang, senior vice president at Xiaomi, said by telephone ahead of the deal.

Analysts said Xiaomi’s ambitions to be a major player outside China were hampered by weak patent protection and a fear of a prolonged legal battle.

“This deal might just give them enough of a patent trove to move to Western markets,” said Sameer Singh, a UK-based analyst. “Their position in China has been under constant attack from even lower-end Android vendors, so moving overseas is now a necessity.”

Shipments of Xiaomi phones fell 9 percent year-on-year in China in the first quarter, according to Strategy Analytics, and its market share dipped to 12 percent from 13 percent, squeezed not only by Huawei [HWT.UL] and Samsung Electronics but also smaller contenders including Oppo and Vivo.

Wang said the acquisition of Microsoft patents, which included voice communications, multimedia and cloud computing, on top of some 3,700 patents the Chinese company filed last year, were “an important step forwards to support our expansion internationally.”

Xiaomi launched its first U.S. device earlier this month, a TV set-top box it developed in cooperation with Alphabet Inc’s Google, which owns the Android operating system it and most Xiaomi devices run on. Xiaomi has also launched a tablet which runs a version of Microsoft’s Windows operating system.

Jonathan Tinter, corporate vice president at Microsoft, said the company was keen to tap into Xiaomi’s young, affluent and educated users by having its products pre-installed on their devices. He declined to go into detail about the patent deals, but said the overall deal was something “we do only with a few strategic partners.”

Microsoft has cut licensing deals with many Android device makers over the years, but has had less luck with Chinese manufacturers.

Florian Mueller, a patents expert who consulted for Microsoft in the past, said it was rare for Microsoft to actually sell its patents, adding “it’s possible Microsoft found it easier to impose its Android patent tax on Xiaomi as part of a broader deal that also involved a transfer of patents.”

source: interaksyon.com

Microsoft says game over for Xbox 360

Microsoft Corp said on Wednesday it would stop production of its popular Xbox 360 video game console, which helped the company gain a firm foothold in the market.

More than 80 million units of the console have been sold since it was launched in 2005.

Xbox 360 also introduced Microsoft’s Kinect motion-sensing game device. It was the company’s primary gaming console, until it launched the Xbox One in 2013.

The Xbox 360 launched with a number of popular video games including Activision Blizzard Inc’s “Call of Duty 2″ and Electronic Arts Inc’s “Need for Speed: Most Wanted”.

Microsoft said in a blog post it would continue to sell existing inventory of the consoles, and that it would continue to provide customer support.

The company’s Xbox Live network, which allows online multi-player gaming, will continue to be available for the Xbox 360.

Sales of older-generation consoles, such as the Xbox 360 and Sony’s PlayStation 3, have been declining as consumers shift to newer versions of the consoles from the companies.

“While we’ve had an amazing run, the realities of manufacturing a product over a decade old are starting to creep up on us,” said Phil Spencer, the head of Microsoft’s Xbox division.

The company has also introduced the ability for users to play games launched for the Xbox 360 on its latest console. Microsoft currently offers over 100 video game titles as a part of its “backward compatibility” feature.

source: interaksyon.com

Microsoft recalls 2.3 million power cords sold with Surface Pro tablets

The U.S. Consumer Product Safety Commission said Microsoft Corp was recalling about 2.25 million AC power cords, less than a week after Apple Inc said it was recalling AC wall plug adapters due to a shock hazard.

Microsoft has received 56 reports of the AC cords overheating and emitting flames and five reports of electrical shock to consumers, the U.S. CPSC said on Tuesday.

The recall involves power cords sold with some models of the Microsoft Surface Pro convertible tablet devices before March 15.

Last week, Apple said it was voluntarily recalling AC wall plug adapters designed for use in Argentina, Australia, Brazil, Continental Europe, New Zealand and South Korea.

source: interaksyon.com

Microsoft’s secret weapon for growth in the cloud: email

SAN FRANCISCO — In reporting better-than-expected fiscal second-quarter earnings on Thursday, Microsoft Corp. CEO Satya Nadella touted his company’s success in the cloud.

“Businesses everywhere are using the Microsoft Cloud as their digital platform to drive their ambitious transformation agendas,” he said.

What he didn’t mention was the role that one of the company’s much older products played in the success of this new technology: Microsoft Exchange Server, which many of the world’s largest companies rely on for email services.

When companies begin moving data to the cloud, typically a network of servers managed by an outside company, a common first step is to move email, often with other office software tools but sometimes on its own.

For companies already relying on Microsoft Exchange and Outlook for sending and receiving email, information technology managers say, turning to the same company to handle that data in the cloud seems like a logical move.

That’s what happened at the University of Wisconsin, Madison.

The school was looking to streamline its technology by moving to the cloud, starting with email, because it is “a pain to operate,” said Bob Plankers, a virtualization architect at the university. “Aside from email servers, you need to worry about spam and virus scanning,” he added.

For the transition, Plankers said he chose Microsoft’s cloud-based Office 365 product because the university already used Outlook.

“It’s just a really natural thing,” said Matt McIllwain, an investor at Madrona Venture Group, about companies starting their cloud transition with email and other widely used office software from Microsoft. “It’s easier and can be more cost effective to run it on the cloud, and let Microsoft worry about your Exchange servers.”

Such thinking helps explain how Microsoft has become the second largest provider of cloud infrastructure, services and software, well ahead of Salesforce, Oracle and Google, according to a Goldman Sachs analysis.

The company announced Thursday that it was on track to generate $9.4 billion in annual cloud-based revenue, up from $5.5 billion a year ago.

Microsoft remains far behind market leader Amazon, but it has become the fastest-growing major cloud provider. Its key Azure business has more than doubled year on year, well above the 65 percent growth rate of market leader Amazon, according to Goldman.

Microsoft has worked hard to exploit the advantage its mail software provides. “Maybe one of the first steps is you want to move your email. That’s fine,” says Takeshi Numoto, corporate vice president for cloud and enterprise marketing. “That gets us more opportunity to engage with customers.”

Investor McIllwain called that strategy smart, because customers who move their Outlook email to Microsoft’s cloud typically use a Microsoft directory service that controls access to that email. It then becomes simple to use that same directory to provide designated employees access to other data and services that are later moved to Microsoft’s cloud.

The strategy isn’t foolproof, however. Over seven months last year, Clif Bar, an Oakland, Calif.-based snack provider, moved all its Outlook email, along with other applications like document management and workflow, to Azure.

The company nevertheless moved its enterprise resource management to the cloud services of another longtime partner: Oracle.

As cloud services rapidly expand, Microsoft will have to demonstrate that its products are equal to, or better than, those of its competitors in both quality and price.

Currently, many companies favor Microsoft because it offers more flexibility in terms of moving software around, say from a company’s own data center to the one it has outsourced to Azure, said Frank Gillett, an analyst at Forrester Research. But Amazon’s AWS offers more types of tools, and has a longer track record selling cloud services, he said.

source: interaksyon.com

Microsoft’s latest operating system running on 200 million devices

SAN FRANCISCO — Microsoft Corp’s latest operating system, Windows 10, is running on 200 million devices in what the company said was the fastest adoption rate of any of its operating systems.

Windows 10, which the company released as a free download in July, powers both personal computers and devices like phones. It replaced Windows 8, the heavily criticized system dating from 2012.

Just over two months ago, Chief Executive Officer Satya Nadella said 110 million devices were running Windows 10, meaning the system is now on almost double the number of phones and PCs compared to before the holiday season.

“I would characterize this as white hot adoption out of the gate,” said Daniel Ives, an analyst at FBR Capital Markets, who has an “outperform” rating on the stock.

Much of the growth comes from retail consumers, with devices such as Microsoft’s Xbox gaming console helping drive adoption of Windows 10, the company said. Xbox’s busiest day ever was Dec. 28, it added.

But the ultimate success of Windows 10 will be judged by the take-up rate among businesses. About three-quarters of Microsoft’s enterprise customers are testing Windows 10, the company said.

Microsoft also needs more mobile developers to build apps for Windows 10 to help catch up with players like Apple and its popular iPhone and iPad devices. It reported some progress in that area Monday, citing more visits to its Windows Store for apps such as video service Netflix and music service Pandora.

source: interaksyon.com

Big US firms, led by Apple, hold $2.1 trillion overseas to avoid taxes: study

WASHINGTON - The 500 largest American companies hold more than $2.1 trillion in accumulated profits offshore to avoid US taxes and would collectively owe an estimated $620 billion in US taxes if they repatriated the funds, according to a study released on Tuesday.

The study, by two left-leaning non-profit groups, found that nearly three-quarters of the firms on the Fortune 500 list of biggest American companies by gross revenue operate tax haven subsidiaries in countries like Bermuda, Ireland, Luxembourg and the Netherlands.

The Center for Tax Justice and the US Public Interest Research Group Education Fund used the companies' own financial filings with the Securities and Exchange Commission to reach their conclusions.

Technology firm Apple was holding $181.1 billion offshore, more than any other US company, and would owe an estimated $59.2 billion in US taxes if it tried to bring the money back to the United States from its three overseas tax havens, the study said.

The conglomerate General Electric has booked $119 billion offshore in 18 tax havens, software firm Microsoft holding $108.3 billion in five tax haven subsidiaries and drug company Pfizer is holding $74 billion in 151 subsidiaries, the study said.

"At least 358 companies, nearly 72 percent of the Fortune 500, operate subsidiaries in tax haven jurisdictions as of the end of 2014," the study said. "All told these 358 companies maintain at least 7,622 tax haven subsidiaries."

Fortune 500 companies hold more than $2.1 trillion in accumulated profits offshore to avoid taxes, with just 30 of the firms accounting for $1.4 trillion of that amount, or 65 percent, the study found.

Fifty-seven of the companies disclosed that they would expect to pay a combined $184.4 billion in additional US taxes if their profits were not held offshore. Their filings indicated they were paying about 6 percent in taxes overseas, compared to a 35 percent US corporate tax rate, it said.

"Congress can and should take strong action to prevent corporations from using offshore tax havens, which in turn would restore basic fairness to the tax system, reduce the deficit and improve the functioning of markets," the study concluded.

source: interaksyon.com

Microsoft plans celebratory debut of Windows 10

SAN FRANCISCO — Microsoft on Monday announced plans for a celebratory debut this month of Windows 10 operating software designed to spread the US software titan’s offerings across a broad range of devices.

Word that Windows 10 would be welcomed in grand style came less than a week after Microsoft said it will cut 7,800 jobs and write down the value of its struggling mobile phone division acquired last year from Nokia by some $7.6 billion.

The announcement represented the second major round of layoffs in a year for the US tech giant, which cut some 18,000 jobs a year ago as part of its effort to integrate the Finnish-based phone group.

Microsoft said in a statement that it would “restructure the company’s phone hardware business to better focus and align resources.”

Microsoft will make the latest version of its Windows operating system will available July 29 for computer and tablet users.

Insider events

Special events are planned in 13 cities around the world in tribute to those who took part in a Windows software test period, Microsoft executive Yusuf Mehdi said in a blog post.

“We will celebrate the unprecedented role our biggest fans – more than five million Windows Insiders,” Mehdi said.

“These celebrations will offer hands-on opportunities, experiential demos, entertainment and opportunities to meet the Windows team.”

The list of cities where Windows 10 launch events will take place includes Beijing, Sydney, Tokyo, London, New Delhi, Sao Paolo, and New York.

The new Windows 10 software will come as a free upgrade to people who already use Windows 7 or Windows 8.1 and will be available in 190 countries.

Windows 10 will come pre-installed on Microsoft-compatible computers and tablets from July 29 and will be available for purchase later in the year.

The move marks a major launch for Microsoft, after the relative failure of Windows 8, which was rolled out in 2013.

High hopes

Microsoft has high hopes for Windows 10, which it wants to see installed in a billion devices around the world by 2018.

Windows 10 boasts a common base on which developers will be able to build apps that work on smartphones, tablets, PCs and desktops, and even Xbox.

As part of the launch celebration, Microsoft will invest $10 million to support missions of nonprofit groups including Malala Fund, CARE, Code.org, Special Olympics, and The Nature Conservancy.

While it still dominates the market for personal computers, Microsoft has struggled in the market for mobile devices, the majority of which are powered by the Google Android system or Apple’s iOS.

Satya Nadella, who became CEO in 2014, is seeking to reinvigorate a company that had been the world’s largest but which has lagged in recent years as Google and Apple have taken leadership of the tech sector.

source: interaksyon.com

Microsoft hands display ads to AOL, maps to Uber

SEATTLE — Microsoft Corp said on Monday it will hand over its display advertising business to AOL Inc and sell some map-generating technology to ride-hailing app company Uber, as it slims down its money-losing online operations.

The moves mean Microsoft will focus on its growing search advertising business based on its Bing search engine, and displaying maps on its Windows devices rather than generating the maps themselves.

Microsoft, which employs hundreds of people in its display ad business around the world, said those employees would be offered the chance to transfer to AOL and that it was not making any layoffs.

The world’s largest software company no longer breaks out results for its online operations, chiefly its MSN web portal and Bing, but they have lost more than $10 billion over the past five years. Chief Executive Satya Nadella has said Bing will turn a profit next fiscal year.

“Today’s news is evidence of Microsoft’s increased focus on our strengths: in this case, search and search advertising and building great content and consumer services,” said Microsoft in a statement.

Under a 10-year deal struck with AOL, now a unit of Verizon Communications Inc, AOL will sell display ads on MSN, Outlook.com, Xbox, Skype and in some apps in major countries. As part of the deal, Bing will become the search engine behind web searches on AOL starting next year.

Microsoft also struck a multi-year extension to its existing deal with AppNexus, which provides the tech platform for buyers to purchase online ads.

Microsoft and Uber did not disclose financial terms of their deal, under which Uber will take over the part of Microsoft’s mapping unit that works on imagery acquisition and map data processing. Uber will offer jobs to the 100 or so Microsoft employees working in that area, according to a source familiar with the deal.

Fast-growing Uber, which is shaking up established taxi services worldwide, already uses a combination of map services from Google Inc, Apple Inc and China’s Baidu and the source said it will continue to do so.

Although Microsoft will no longer collect mapping imagery itself, Microsoft said it will continue to work with imagery providers for underlying data on its own maps. Microsoft already gets much of its map data from Finland’s Nokia.

source: interaksyon.com

Microsoft to buy German start-up behind Wunderlist app — report

FRANKFURT, Germany — Microsoft has agreed to acquire 6Wunderkinder GmbH, a Berlin-based startup behind the Wunderlist to-do list app, for between $100-200 million, the Wall Street Journal reported on Tuesday.

Quoting a person familiar with the deal, the daily said the purchase was part of Microsoft’s drive to enhance its line of mobile apps.

In March, Microsoft acquired the Californian start-up LiveLoop and its app which allows multiple users to collaborate on PowerPoint presentations simultaneously.

6Wunderkinder was not immediately available to comment on Tuesday.

Created in 2010, Wunderlist allows users to create lists to manage tasks on many devices, mobile as well as desktop.

source: interaksyon.com

Microsoft to launch first flagship store outside US in Sydney

SYDNEY, Australia — Microsoft on Tuesday said it will open its first flagship store outside the United States in Sydney, as the technology giant expands its physical footprint to take on global rivals Apple and Samsung.

Microsoft Australia’s managing director Pip Marlow said the shop, to be located in Sydney’s main Pitt Street shopping district, was a “significant development” for the American firm.

“This is a significant development for our business locally as well as globally,” Marlow said in a statement on the company’s website.

“This will be much more than a store. It will embody the world class innovation that you have come to expect from Microsoft and be a space where consumers… can visit and learn how to make the most of their technology.”

A flagship store is commonly seen as a way for firms to showcase their brand’s products and have more recently been adopted by technology companies keen to establish direct contact with their customers in large, downtown outlets.

The store will be just several hundred metres from Apple’s flagship shop and a Samsung outlet, and will reportedly take up 581 square metres (6,254 square feet) over two floors.

Marlow did not say when it would open but The Australian Financial Review said it would be in time to capture the busy Christmas shopping period.

The Redmond, Washington-based company announced last year its first flagship store would be on Fifth Avenue in New York.

The firm has 110 physical stores in the US, Canada and Puerto Rico and 17 store-in-store locations in China. Along with the flagship shops, they are a reflection of Microsoft’s push towards a more visible presence.

Apple said in March it has 453 physical stores in 16 countries.

Microsoft is seeking to take on the mobile operating systems space dominated by Apple’s iOS and Google’s Android. The Windows operating system for PCs, which was launched in the 1990s, has been a cash cow for Microsoft, but the platform is lagging in mobile.

Microsoft has also launched its own mobile devices such as Surface tablets and Lumia smartphones.

source: interaksyon.com

Windows 10 coming in 190 countries, 111 languages

WASHINGTON — Microsoft says its new Windows 10 operating system will be coming “this summer” in 190 countries and 111 languages.

In a blog post late Tuesday, Microsoft executive vice president Terry Myerson said the operating system designed for multiple devices would also have a “small footprint” for connected devices.

“We continue to make great development progress and shared today that Windows 10 will be available this summer in 190 countries and 111 languages,” he said.

Microsoft has yet to provide a precise date for the launch of the operating system, which is aimed at powering PCs,smartphones and also connected devices such as bank machines and medical equipment.

“For the first time, a new version of Windows for small footprint IoT (Internet of Things) devices will be available — for free — when Windows 10 launches,” Myerson said.

“Windows 10 will offer versions of Windows for a diverse set of IoT devices, ranging from powerful devices like ATMs and ultrasound machines, to resource constrained devices like gateways.”

Microsoft is also working with fast-growing Chinese smartphone maker Xiaomi to test Windows 10 on its devices.

The US tech giant also announced partnerships with Chinese-based Tencent and Lenovo to help customers in China upgrade to Windows 10.

The company also said Tuesday that Windows 10 will allow users to sign in to a device without a password by using biometrics, including facial recognition.

source: interaksyon.com

Nokia revives the brand with launch of iPad lookalike

HELSINKI — Finland’s Nokia launched a new brand-licensed tablet computer on Tuesday which is designed to rival Apple’s iPad Mini, just six months after the company sold its ailing phones and devices business to Microsoft for over $7 billion.

Nokia, a name which was once synonymous with mobile phones until first Apple and then Samsung Electronics eclipsed the Finnish company with the advent of smart phones, said the manufacturing, distribution and sales of the new N1 tablet, will be handled under licence by Taiwan’s Foxconn.

The aluminium-cased N1, which runs on Google’s Android Lollipop operating software but features Nokia’s new Z Launcher intelligent home screen interface, is due to be in stores in China in the first quarter of next year for an estimated price of $249 before taxes, with sales to other markets to follow.

Sebastian Nystrom, the head of products at Nokia’s Technologies unit, said the company was looking to follow up with more devices and will also look into eventually returning to the smartphones business by brand-licensing.

“With the agreement with Microsoft, as is customary, we have this transition and we can’t do smartphones … We have a time limit, in 2016 we can again enter that business,” Nystrom told Reuters.

“It would be crazy not to look at that opportunity. Of course we will look at it.”

Microsoft last week dropped the Nokia name on its latest Lumia 535 smartphone, which runs on its Windows Phone 8 operating system, but still uses the brand for more basic phones.

After the Microsoft sale Nokia was left with its core network equipment and services business plus its smaller HERE mapping and navigation unit and Nokia Technologies, which manages the licensing of its portfolio of patents and develops new products such as the N1 and the Z Launcher.

Asked about rumours that Nokia was looking to re-enter the handset market, Chief Executive Rajeev Suri said last week he was looking into ways to bring the brand back into the consumer market through licensing deals.

source: interaksyon.com

Microsoft joins fitness bandwagon

NEW YORK — Microsoft unveiled its first fitness band Thursday, joining a crowded market of connected devices for tracking and analyzing personal health data.

The Microsoft Band, which went on sale Thursday in the US market, was released along with a new Microsoft Health software platform that includes a cloud service for consumers and the industry to store and combine health and fitness data.

“Today, we are taking our first steps with the industry to empower people to achieve more with their fitness and wellness,” Microsoft’s Todd Holmdahl said in a blog post.

The new fitness band has 10 smart sensors to monitor the heart rate around the clock, as well as measure the amount of calories burned, track sleep quality and provided guided workouts.

Holmdahl said “the Microsoft Band will keep you connected at a glance with helpful, smart notifications including incoming calls, emails, texts and social updates as well as access to Cortana,” Microsoft’s personal assistant software.

The device is selling online and in Microsoft stores for $199.

the software platform will also work with devices from rival makers, including UP by Jawbone, MapMyFitness, MyFitnessPal and RunKeeper.

“Soon, Microsoft Health will also allow you, at your choosing, to connect your Microsoft Health data to HealthVault to share with your medical provider,” Holmdahl said.

The platform works with Android and Apple’s iOS in addition to Windows Phone.

Holmdahl said the software includes an “intelligence engine” that will help people determine which exercises burned the most calories during a workout, the recommended recovery time from a workout and the amount of restful and restless sleep.

source: interaksyon.com

Microsoft plans to launch smartwatch within weeks – Forbes

NEW YORK — Microsoft Corp is preparing to launch a smartwatch within the next few weeks that will passively track a user’s heart rate and work across different mobile platforms, Forbes reported on Sunday.

The wearable gadget’s battery life will exceed two days of regular use, Forbes reported, citing unnamed sources close to the project. It will arrive in stores soon after being unveiled in an effort to capture the holiday season, Forbes reported.

Microsoft declined to comment.

Apple Inc unveiled a smartwatch on Sept. 9 that will combine health and fitness tracking with communications and will go on sale in early 2015, while Samsung Electronics Co unveiled its Galaxy Gear smartwatch in September 2013.

source: interaksyon.com

Microsoft to spotlight new Windows software September 30

SAN FRANCISCO — Microsoft on Monday sent out invitations to a September 30 event at which it is expected to provide a glimpse at the next version of its Windows operating system.

The US software titan revealed little with invitations that read: “Join us to hear what’s next for Windows and the enterprise.”

The event slated to take place in San Francisco will be aimed at developers behind programs designed for computers powered by Windows software, and at businesses that depend on Microsoft programs in their networks.

Microsoft was said to be working on a separate version of Windows for smartphones and tablets, as it works to adapt to lifestyles centered increasingly on Internet-linked mobile devices.

source: interaksyon.com