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Microsoft Australia posts $55.9M profit amid top-tier changes

Microsoft Australia posts $55.9M profit amid top-tier changes

Profits improve from $53.6m last year

Microsoft Australia has recorded a profit of $55.9 million for its 2015-16 financial year, an increase of $2.3 million from the $53.6 million it recorded the same time last year.

The company's local operation also revealed its revenue for the 12-month period came to $725.8 million for the year ending June 30, 2016, in documents lodged with the Australian Securities and Investments Commission (ASIC).

The latest profit tally highlights the local results of Microsoft's global focus on the cloud.

Recently, the company reported that its Commercial Cloud business pulled in revenues of more than $US13 billion for the six months ending December 31, 2016. It also reported that Azure growth was especially strong, with revenues from the business growing by 93 per cent.

In line with its cloud growth fc, the company announced, on January 11, that it has shifted its licensing for its Azure cloud service, eliminating the pay-as-you-go option for new Azure customers using MPSA (Microsoft Products and Services Agreement) as of February 1.

Instead, customers are now being steered toward the company's CSP (Cloud Solution Provider) program.

But that’s not the only recent change the company has embarked on that could impact its 2016-17 financial year results.

The global tech giant will also soon end support for the Office 2013 client apps that it previously distributed through its cloud-based productivity service on February 28; set March 26 as the end date for support of the original Windows 10 edition; and expanded its FastTrack migration service.

A reorganisation of its business units was also on the cards for the company. As of 1 February, Microsoft has combined its Small and Mid-Market Solutions & Partners (SMS&P) and Enterprise Partner Group (EPG) business units in an attempt to streamline business processes.

ARN previously reported that the changes, will affect its sales, partner, and services teams, and will see both units come together as one under its Worldwide Commercial Business, led by executive vice-president, Judson Althoff.

Locally, the company will soon see Microsoft Australia's director of partner development, Phil Goldie, cross the Tasman after being named as the new SMS&P lead for Microsoft New Zealand, effective March 1.

Goldie’s impending move to New Zealand comes after Pip Marlow vacated her role as managing director of Microsoft Australia towards the end of last year. Marlow was replaced by Steven Worrall, who assumed responsibilities locally on January 1.

“I’m confident that Microsoft will continue to go from strength to strength in Australia,” Marlow told ARN previously.

Microsoft is said to continue to gain ground across the industry through its bid to create an intelligent cloud in Microsoft Azure, alongside taking on Apple in the devices market while pursuing emerging technologies such as mixed reality in HoloLens.

"This is a unique time for our business and I look forward to playing my part and leading our team to deliver outstanding technology solutions and partnerships with our customers, partners, employees and communities,” Worrall said previously.

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Tags profitfinancialsMicrosoft Australiarevenue growth

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