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posted by janrinok on Friday October 11 2019, @08:35PM   Printer-friendly
from the smoke-and-mirrors dept.

https://medium.com/@wtfmitchel/azure-vs-moores-law-2020-65a6fe67e31b

As a result of undershooting their projected capacity by such a large margin, Microsoft was way off on their capacity projections with Azure and only built roughly 1/3 of the data center capacity that was actually necessary. Consequently, they had to over-provision their existing data centers to the point of tripping the breakers and rapidly fill the gaps with an excessive amount of leased space to meet the demand that they projected. All of which effectively doubled the amount of leased space in their portfolio from 25% to 50%, extended their break-even to nearly a decade, and killed their hopes of profitability any time soon.

While an honest mistake and not being able to foresee the future is forgivable, knowingly omitting a mistake of this magnitude is criminal when considering how much Microsoft is hedging its future on Azure. On top of supplying misleading revenue metrics in their quarterly 10K filings to fortify a position of strength and being second only to AWS, Microsoft seems to be wary about reporting Azure's individual performance metrics or news of these failings that would enable investors to conclude this for themselves. Instead, Microsoft appears to be averaging out Azure's losses with their legacy mainstays that are profitable by reporting its revenue within their Intelligent Cloud container instead of itemizing it.

Previously:


Original Submission

 
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  • (Score: 2, Insightful) by Anonymous Coward on Saturday October 12 2019, @01:05AM

    by Anonymous Coward on Saturday October 12 2019, @01:05AM (#906133)

    This takes the out completely. It is time for microsoft to go away and never come back.

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