Microsoft's business weakened in December. Now it expects those patterns to continue to play out through March, including in its critical Azure cloud.
"In our commercial business we expect business trends that we saw at the end of December to continue into Q3," Amy Hood, Microsoft's chief financial officer, said on a conference call.
In particular, he company saw less growth than expected in Microsoft 365 productivity software subscriptions, identity and security services, and business-oriented Windows products.The company sells products such as Xbox consoles and Surface PCs to consumers, but most of its revenue comes from commercial clients such as companies, schools, and governments. That's where the impact will show up.
Large organizations are optimizing their spending on cloud services, a key area of growth for Microsoft, CEO Satya Nadella said. That behavior also played out in the
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