SoylentNews
SoylentNews is people
https://soylentnews.org/

Title    Azure Might be Woefully Inefficient and Unprofitable
Date    Friday October 11 2019, @08:35PM
Author    janrinok
Topic   
from the smoke-and-mirrors dept.
https://soylentnews.org/article.pl?sid=19/10/11/0930256

An Anonymous Coward writes:

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

Links

  1. "misleading revenue metrics" - https://www.microsoft.com/en-us/Investor/earnings/FY-2019-Q1/intelligent-cloud-performance
  2. "Azure 'Running out of Internets' in UK South, Starts Rationing VMs" - https://soylentnews.org/article.pl?sid=18/07/19/2224252
  3. "Azure Stack Will Need Special Sysadmins, Says Microsoft" - https://soylentnews.org/article.pl?sid=17/08/17/0240237
  4. "Original Submission" - https://soylentnews.org/submit.pl?op=viewsub&subid=36776

© Copyright 2024 - SoylentNews, All Rights Reserved

printed from SoylentNews, Azure Might be Woefully Inefficient and Unprofitable on 2024-03-28 23:02:53