The words “virtual cloud” are about the best we can do when summing up the recent spate of quarterly earnings results among leading tech manufacturers. While it’s often difficult to compare apples to oranges (or androids for that matter), a closer look behind the numbers is revealing an interesting trend as it relates to how businesses and healthcare institutions are spending their IT dollars.
Microsoft posted quarterly earnings of $25.7B, easily surpassing analyst estimates and sending the company’s stock soaring 8%. Wall Street has often been accused of having its head in the cloud and judging by the company’s deferred revenue of $25B, so do the folks in Redmond. Azure and Office 365 seem to be driving future growth.
It’s a different story at EMC where, aside from its stake in VMware, the storage giant seems to be taking a beating. But Michael Dell isn't regretting the decision to write that big check just yet and he can thank the virtual lord above for that. EMC’s stake in VMware continues to be the crown jewel in the empire and while VMware stock is trading at its lowest levels in five years, NSX business is up over 100% in the last twelve months, suggesting continued momentum in the software-defined networking arena.
All in all, things are virtually looking up.