Software Vendor Performance FY2020

Vendor results can be a telling indicator of what might lie ahead

We regularly connect with the ITAM Review as a reliable source of information in the software domain and of interest this month is a comprehensive report from Rich Gibbons on the financial performance of some key software vendors - from the $5.6B loss of Google Cloud to the 29% rise in operating income (Q2) of Microsoft.

You'll find the full report here.

In summary ...

• AWS saw revenue increase 29% to $45.3 billion, with income up 47% to $13.5 billion;
• Google Cloud reached $13.1 billion for the financial year, an increase of 47% however incurred loses every quarter with an overall loss of $5.6 billion for the financial year;
  
• IBM's overall revenue was down 5% to $73.6 billion however cloud revenue was up 19% to $25.1 billion well supported by Red Hat revenue up 18%;
  
• Not a great year for Micro Focus with an annual revenue of $3 billion (a 10% drop on 2019) with a $3 billion loss for the financial year ($2.8 billion of which was a write down on a large chunk of the ill-fated HPe purchase from 2017);
  
• At the midway point for Microsoft revenue was up 17% to $43.1 billion with operating income up 29% to $17.9 billion - a very healthy start to their financial year;
  
• SAPs total revenue was €27.3 billion 1% down year on year, with cloud revenue €8.08 billion, representing a rise of 17%.
  

Some marked differences in performance - particularly in the cloud space, with a watch and ready advice for some of the poorer performers - we all know where they head when times are tight ... 

... the perceived quick gains of the audit trail.