News Center http://news.microsoft.com News, perspectives and press materials from Microsoft on news and events affecting the company and the tech industry in general. Fri, 29 Apr 2016 20:32:56 +0000 en-US hourly 1 http://wordpress.org/?v=4.3.3 Microsoft and Funai deepen partnership with cross-licensing agreement http://news.microsoft.com/2016/04/27/microsoft-and-funai-deepen-partnership-with-cross-licensing-agreement/ http://news.microsoft.com/2016/04/27/microsoft-and-funai-deepen-partnership-with-cross-licensing-agreement/#comments Wed, 27 Apr 2016 21:01:00 +0000 http://news.microsoft.com/?p=290644 Read more »]]> REDMOND, Wash., and OSAKA, Japan — April 27, 2016 — On Wednesday, Microsoft Corp. and Funai Electric Co. Ltd. (“Funai Electric”) announced they are strengthening their successful partnership with the renewal of a patent cross-licensing agreement covering a range of consumer audio-video products.

“Microsoft and Funai Electric will continue to benefit from each other’s innovations in building enhanced experiences for our customers,” said Nick Psyhogeos, president of Microsoft Technology Licensing. “This cross-licensing agreement is another example of the advantages of an IP-led economy, encouraging product interoperability and accelerating research and development advances across companies.”

Joji Okada, officer of intellectual property (IP) licensing of Funai Electric, said, “Cross-licensing partnerships foster better collaboration and technology sharing. We see an enduring value in continuing to work with Microsoft that is mutually beneficial to all of our customers.”

Funai Electric is a worldwide leading manufacturer under FUNAI and other multiple brands including Philips, Magnavox, DX Broadtec, Emerson, Sanyo and Kodak.

Microsoft’s commitment to licensing IP

This patent agreement is another example of the important role IP plays in ensuring a healthy and vibrant technology ecosystem. Since Microsoft launched its IP licensing program in December 2003, it has entered into more than 1,200 licensing agreements, increasing collaboration and innovation across a range of industries. More information about Microsoft’s licensing programs is available at http://www.microsoft.com/iplicensing.

About Funai Electric Co. Ltd.

Funai Electric, established in 1961 and headquartered in Osaka, Japan, is listed in the Tokyo Securities Exchange First Section (6839) as a leading manufacturer of LCD TVs, DVDs/Blu-rays and related peripherals, printers, and antennas, etc. under FUNAI and other multiple brands in the global consumer electronics market. Funai Electric is well-known as a major original equipment manufacturer (OEM) and supplier as well.

FUNAI products are sold by its sales subsidiaries FUNAI CORPORATION and P&F USA for North America, P&F MEXICANA for Central/South America, and other Funai Sales and Marketing companies throughout Asia.

Funai group sells products under multiple brands in addition to FUNAI. FUNAI products have a strong and solid reputation in global markets for their quality and reasonable prices. For more information on the Funai group, please visit www.funai.jp/en/ and www.funai.jp/en/guidance/history.html.

About Microsoft Technology Licensing

Microsoft Technology Licensing LLC was formed in 2014 to acquire, manage and license Microsoft’s patent portfolio.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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Microsoft extends openness and interoperability in industrial manufacturing http://news.microsoft.com/2016/04/25/microsoft-extends-openness-and-interoperability-in-industrial-manufacturing/ http://news.microsoft.com/2016/04/25/microsoft-extends-openness-and-interoperability-in-industrial-manufacturing/#comments Mon, 25 Apr 2016 16:23:05 +0000 http://news.microsoft.com/?p=291112 Read more »]]> HANNOVER, Germany — April 25, 2016 — Monday at Hannover Messe 2016, Microsoft Corp. announced it is working with the OPC Foundation to enable virtually any industrial Internet of Things (IoT) scenario through interoperability between the millions of applications and industrial equipment compliant with the OPC UA standard. Microsoft will further enable its industrial IoT customers to connect a broad range of manufacturing equipment and software that can span decades of investment with extended support of the OPC UA open source software stack.

Interoperability between devices and assets is critical for today’s factories, which are increasingly bringing new and legacy systems online and modernizing their plants and facilities. OPC UA provides a standardized communi­cation, security, and metadata and semantics abstraction for the majority of industrial equipment. It also serves as a gateway to cloud-enabled industrial equipment, including data and device management, insights, and machine learning capabilities for equipment that was not de­signed with these capabilities built in.

Microsoft’s extended support for the OPC UA open source software stack spans its IoT offerings, from local connectivity with Windows devices to cloud connectivity via the Microsoft Azure platform. Integration with Azure IoT allows customers to easily send OPC UA telemetry data to the Azure cloud, as well as to command and control their OPC UA devices remotely from the Azure cloud. In addition, Windows 10 devices running the Universal Windows Platform can connect and openly communicate with other IoT devices via OPC UA.

“As Industry 4.0 reaches a tipping point, we believe that openness and interoperability between hardware, software and services will help manufacturers transform how they operate and create solutions that benefit employees’ productivity,” said Sam George, director, Azure Internet of Things at Microsoft. “Microsoft’s support of OPC UA in Azure IoT and Windows IoT will reduce barriers to industrial IoT adoption and help deliver immediate value.”

“OPC UA is widely recognized as a key communication technology for the Industry 4.0 initiative,” said Thomas J. Burke, OPC Foundation president and executive director. “Microsoft’s support for standards that foster IoT innovation, and specifically for OPC and OPC UA, results in easy, direct and more secure communications from programmable logic controllers on the shop floor to the top-floor world of IT.”

“OPC UA is the single, neutral, widely accepted standard to embrace the complex world of automation devices to easily and securely connect them everywhere,” said Stefan Hoppe, OPC Foundation vice president. “With the adoption by Microsoft to its Windows 10 operating system and Azure cloud, the OPC UA standard passes the critical milestone of general acceptance by the broader IT world.”

More information on Microsoft’s work with the OPC Foundation, and its support of OPC UA, is available at the Microsoft Booth at Hannover Messe in Hall 7, Booth C40.

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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Microsoft and Jabil collaborate to create quality assurance platform for predictive analytics http://news.microsoft.com/2016/04/25/microsoft-and-jabil-collaborate-to-create-quality-assurance-platform-for-predictive-analytics/ http://news.microsoft.com/2016/04/25/microsoft-and-jabil-collaborate-to-create-quality-assurance-platform-for-predictive-analytics/#comments Mon, 25 Apr 2016 07:00:41 +0000 http://news.microsoft.com/?p=290980 Read more »]]> HANNOVER, Germany — April 25, 2016 — Monday at the Hannover Messe industrial fair, Microsoft Corp. announced that Jabil, one of the world’s leading design and manufacturing solution providers, has built its predictive analytics solution on Microsoft Azure Machine Learning. The new platform predicts errors or failures on the assembly floor before they occur, saving its customers time and money while delivering superior quality and shortened product lead times throughout the entire supply chain. Jabil has rolled out the platform in two of its megasites in Penang, Malaysia, and Guadalajara, Mexico, and plans to deploy the solution to its facilities worldwide.

In digital manufacturing, quality assurance across the assembly line is imperative. Identifying errors, slowdowns and potential failures before they occur rather than after they happen can help companies be more proactive and improve productivity.

Through a collaboration with Microsoft, Jabil is using Microsoft Azure services to analyze millions of data points from machines running dozens of steps throughout the manufacturing process. Through Azure Machine Learning, Jabil can help predict failures earlier in the process, for example, at step two in a 32-step process instead of step 15.

“Since deploying the Microsoft predictive analytics solutions we have seen at least an 80 percent accuracy rate in the prediction of machine processes that will slow down or fail, contributing to a scrap and rework savings of 17 percent,” said Clint Belinsky, vice president, Global Quality, Jabil. “As our customers constantly look for ways to innovate, it is very impactful to show them a predictive solution that will ensure quality and increase their speed to market.”

“Jabil’s digital transformation on the factory floor will reshape its industry,” said Jason Zander, corporate vice president of Microsoft Azure at Microsoft. “As product cycle times shorten and products get smarter, Jabil understands how the intelligent cloud combined with predictive analytics will help it support the needs of its customers.”

In addition to time and cost savings through the reduction of waste, Jabil’s operators and engineers can also proactively make adjustments to equipment based on predictions, eliminating the need for unnecessary inspections that cause downtime.

A demonstration of the collaboration is on display at the Microsoft Booth at Hannover Messe 2016 in Hall 7, Booth C40.

About Jabil

Jabil is an electronic product solutions company providing comprehensive electronics design, production and product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 28 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, “JBL”. Further information is available on Jabil’s website: jabil.com.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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Microsoft and Rolls-Royce collaborate to offer advanced operational intelligence to airlines http://news.microsoft.com/2016/04/24/microsoft-and-rolls-royce-collaborate-to-offer-advanced-operational-intelligence-to-airlines/ http://news.microsoft.com/2016/04/24/microsoft-and-rolls-royce-collaborate-to-offer-advanced-operational-intelligence-to-airlines/#comments Sun, 24 Apr 2016 13:00:22 +0000 http://news.microsoft.com/?p=290971 Read more »]]> HANNOVER, Germany — April 24, 2016 Monday at the Hannover Messe industrial fair, Microsoft Corp. and Rolls-Royce, a leading manufacturer of aero engines for the airline and business aviation market, announced they are collaborating to bring new capabilities to Rolls-Royce customers. Rolls-Royce will integrate Microsoft Azure IoT Suite and Cortana Intelligence Suite into its service solutions to expand its digital capabilities to support the current and next generation of Rolls-Royce intelligent engines.

Rolls-Royce engines power more than 50,000 flights around the world each month, and the company constantly strives to improve aircraft efficiency, drive up aircraft availability and reduce engine maintenance costs for customers. To do that, Rolls-Royce offers a broad range of service solutions, including its industry-leading TotalCare® services, focused on keeping its customers’ engines generating maximum value for them. One key to delivering these services is observing trends and anomalies and using the right data to help airlines determine what actions to take to save money or improve operations.

At Hannover Messe, Rolls-Royce and Microsoft will demonstrate how Microsoft will help Rolls-Royce further develop its digital capabilities. Rolls-Royce will tackle some of the greatest airline operational challenges by using Azure IoT Suite to collect and aggregate data from disparate, geographically distributed sources and Cortana Intelligence Suite to uncover data insights. Data sets such as engine health data, air traffic control information, route restrictions and fuel usage data will be collected to detect operational anomalies and trends and then provide intelligent performance feedback on the findings. Using Azure Stream Analytics and Microsoft Power BI dashboards, the goal is to uncover data insights that will enable airlines to improve their operational performance and increase fuel efficiency.

“Our customers are looking for ways to leverage the digital landscape to increase efficiency and improve their operations,” said Tom Palmer, senior vice president, Services, Civil Aerospace, at Rolls-Royce. “By working with Microsoft we can really transform our digital services, supporting customers right across engine-related aircraft operations to make a real difference to performance.”

“Rolls-Royce has always been a pioneer in engine services, and this collaboration will create a new digital engine for Rolls-Royce to deliver an even better service to its customers across its world-class engine fleet through Microsoft Azure,” said Jason Zander, corporate vice president of Microsoft Azure at Microsoft.

With this collaboration, engine management will move beyond the current levels of proactive monitoring of engine health and inflight performance. Through a greater understanding of flight operations excellence, fuel usage and maintenance planning, Rolls-Royce’s airline customers will be able to better retain asset value throughout an engine’s life cycle, reduce flight disruptions and potentially save millions of dollars per year.

A demonstration of the collaboration is on display at the Microsoft Booth at Hannover Messe 2016 in Hall 7, Booth C40.

Microsoft (Nasdaq “MSFT” @Microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

 

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Microsoft cloud strength highlights third quarter results http://news.microsoft.com/2016/04/21/microsoft-cloud-strength-highlights-third-quarter-results/ http://news.microsoft.com/2016/04/21/microsoft-cloud-strength-highlights-third-quarter-results/#comments Thu, 21 Apr 2016 17:30:11 +0000 http://news.microsoft.com/?p=290632 Read more »]]> REDMOND, Wash. — April 21, 2016 — Microsoft Corp. today announced the following results for the quarter ended March 31, 2016:

  • Revenue was $20.5 billion GAAP, and $22.1 billion non-GAAP
  • Operating income was $5.3 billion GAAP, and $6.8 billion non-GAAP
  • Net income was $3.8 billion GAAP, and $5.0 billion non-GAAP
  • Earnings per share was $0.47 GAAP, and $0.62 non-GAAP

“Organizations using digital technology to transform and drive new growth increasingly choose Microsoft as a partner,” said Satya Nadella, chief executive officer at Microsoft. “As these organizations turn to us, we’re seeing momentum across Microsoft’s cloud services and with Windows 10.”

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP financial results. Microsoft has provided this non-GAAP financial information to aid investors in better understanding the company’s performance. All growth comparisons relate to the corresponding period in the last fiscal year.

Three Months Ended March 31,
 ($ in millions, except per share amounts) Revenue Operating Income Net Income Earnings per Share
2015 As Reported (GAAP) $21,729 $6,594 $4,985 $0.61
  Integration and Restructuring Charges 190 119 0.01
2015 As Adjusted (non-GAAP) $21,729 $6,784 $5,104 $0.62
2016 As Reported (GAAP) $20,531 $5,283 $3,756 $0.47
  Net Impact from Revenue Deferrals 1,545 1,545 1,217 0.15
2016 As Adjusted (non-GAAP) $22,076 $6,828 $4,973 $0.62
Percentage Change Y/Y (GAAP) (6)% (20)% (25)% (23)%
Percentage Change Y/Y (non-GAAP) 2% 1% (3)% 0%
Percentage Change Y/Y (non-GAAP) Constant Currency 5% 10% 6% 10%

During the quarter, Microsoft returned $6.4 billion to shareholders in the form of share repurchases and dividends.

This quarter’s income tax expense included a catch-up adjustment to account for an expected increase in the full year effective tax rate primarily due to the changing mix of revenue across geographies, as well as between cloud services and software licensing. As such, the GAAP and non-GAAP tax rates were 25% and 24%, respectively.

“Our continued operational and financial discipline drove solid results this quarter,” said Amy Hood, executive vice president and chief financial officer at Microsoft. “We remain focused on investing in our strategic priorities to drive long-term growth.”

Revenue in Productivity and Business Processes grew 1% (up 6% in constant currency) to $6.5 billion, with the following business highlights:

  • Office commercial products and cloud services revenue grew 7% in constant currency driven by Office 365 revenue growth of 63% in constant currency
  • Office consumer products and cloud services revenue grew 6% in constant currency with Office 365 consumer subscribers increasing to 22.2 million
  • Dynamics products and cloud services revenue grew 9% in constant currency with Dynamics CRM Online seat adds more than doubling year-over-year

Revenue in Intelligent Cloud grew 3% (up 8% in constant currency) to $6.1 billion, with the following business highlights:

  • Server products and cloud services revenue increased 5% in constant currency driven by double-digit annuity revenue growth
  • Azure revenue grew 120% in constant currency with usage of Azure compute and Azure SQL database more than doubling year-over-year
  • Enterprise Mobility customers more than doubled year-over-year to over 27,000, and the installed base grew nearly 4x year-over-year

Revenue in More Personal Computing grew 1% (up 3% in constant currency) to $9.5 billion, with the following business highlights:

  • Windows OEM revenue declined 2% in constant currency, outperforming the PC market, driven by higher consumer premium device mix
  • Surface revenue increased 61% in constant currency driven by Surface Pro 4 and Surface Book
  • Phone revenue declined 46% in constant currency
  • Xbox Live monthly active users grew 26% year-over-year to 46 million
  • Search advertising revenue excluding traffic acquisition costs grew 18% in constant currency with continued benefit from Windows 10 usage

“Digital transformation is the number one priority on our customers’ agenda. Companies from large established businesses to emerging start-ups are turning to our cloud solutions to help them move faster and generate new revenue,” said Kevin Turner, chief operating officer at Microsoft.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Frank Brod, chief accounting officer, John Seethoff, deputy general counsel and corporate secretary, and Chris Suh, general manager of Investor Relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on April 21, 2017.

Adjusted Financial Results and non-GAAP Measures

During the third quarter of fiscal year 2016, GAAP revenue, operating income, net income, and earnings per share include the net impact from revenue deferrals. For the third quarter of fiscal year 2015, GAAP operating income, net income, and earnings per share include charges related to integration and restructuring expenses. These items are defined below. In addition to these financial results reported in accordance with GAAP, Microsoft has provided certain non-GAAP financial information to aid investors in better understanding the company’s performance. Presenting these non-GAAP measures gives additional insight into operational performance and helps clarify trends affecting the company’s business. For comparability of reporting, management considers this information in conjunction with GAAP amounts in evaluating business performance. These non-GAAP financial measures should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Non-GAAP Definitions

Net Impact from Revenue Deferrals. Microsoft recorded a net $1.5 billion revenue deferral during the three months ended March 31, 2016, primarily related to Windows 10.

Integration and Restructuring Charges. Integration and restructuring expenses were $190 million during the three months ended March 31, 2015. Integration and restructuring expenses include employee severance expenses and costs associated with the consolidation of facilities and manufacturing operations related to restructuring activities, and systems consolidation and other business integration expenses associated with the acquisition of Nokia’s Devices and Services business.

Constant Currency

Microsoft presents constant currency information to provide a non-GAAP framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period non-GAAP results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. The non-GAAP financial measures presented below should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. All growth comparisons relate to the corresponding period in the last fiscal year.

Financial Performance Constant Currency Reconciliation

Three Months Ended March 31,
 ($ in millions, except per share amounts) Revenue Operating Income Net Income Earnings per Share
2015 As Reported (GAAP) $21,729 $6,594 $4,985 $0.61
2015 As Adjusted (non-GAAP) $21,729 $6,784 $5,104 $0.62
2016 As Reported (GAAP) $20,531 $5,283 $3,756 $0.47
2016 As Adjusted (non-GAAP) $22,076 $6,828 $4,973 $0.62
Percentage Change Y/Y (GAAP) (6)% (20)% (25)% (23)%
Percentage Change Y/Y (non-GAAP) 2% 1% (3)% 0%
Constant Currency Impact $(838) $(656) $(443) $(0.06)
Percentage Change Y/Y (non-GAAP) Constant Currency 5% 10% 6% 10%

Segment Revenue Constant Currency Reconciliation

Three Months Ended March 31,
 ($ in millions) Productivity and Business Processes Intelligent Cloud More Personal Computing
2015 As Reported (GAAP) $6,457 $5,903 $9,369
2016 As Reported (GAAP) $6,522 $6,096 $9,458
Percentage Change Y/Y (GAAP) 1% 3% 1%
Constant Currency Impact $(339) $(282) $(217)
Percentage Change Y/Y (GAAP) Constant Currency 6% 8% 3%

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world and its mission is to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

  • intense competition in all of Microsoft’s markets;
  • increasing focus on services presents execution and competitive risks;
  • significant investments in new products and services that may not be profitable;
  • acquisitions, joint ventures, and strategic alliances may have an adverse effect on our business;
  • impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;
  • Microsoft’s continued ability to protect and earn revenues from its intellectual property rights;
  • claims that Microsoft has infringed the intellectual property rights of others;
  • the possibility of unauthorized disclosure of significant portions of Microsoft’s source code;
  • cyber-attacks and security vulnerabilities in Microsoft products and services that could reduce revenue or lead to liability;
  • disclosure of personal data that could cause liability and harm to Microsoft’s reputation;
  • outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
  • government litigation and regulation that may limit how Microsoft designs and markets its products;
  • potential liability under trade protection and anti-corruption laws resulting from our international operations;
  • laws and regulations relating to the handling of personal data may impede the adoption of our services or result in increased costs, legal claims or fines against us;
  • Microsoft’s ability to attract and retain talented employees;
  • adverse results in legal disputes;
  • unanticipated tax liabilities;
  • Microsoft’s hardware and software products may experience quality or supply problems;
  • exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange;
  • catastrophic events or geo-political conditions may disrupt our business; and
  • adverse economic or market conditions may harm our business.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of April 21, 2016. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, press only:

Rapid Response Team, Waggener Edstrom Worldwide, (503) 443-7070, rrt@waggeneredstrom.com

For more information, financial analysts and investors only:

Chris Suh, general manager, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

MICROSOFT CORPORATION
INCOME STATEMENTS
(In millions, except per share amounts)(Unaudited)
Three Months Ended

 March 31,

Nine Months Ended

 March 31,

  2016   2015   2016   2015
Revenue  $20,531  $21,729  $64,706  $71,400
Cost of revenue 7,722 7,161 24,801 25,570
Gross margin 12,809 14,568 39,905 45,830
Research and development 2,980 2,984 8,842 8,952
Sales and marketing 3,406 3,709 10,699 11,752
General and administrative 1,140 1,091 3,262 3,339
Impairment, integration, and restructuring 0 190 0 1,573
Operating income 5,283 6,594 17,102 20,214
Other income (expense), net (247) (77) (698) 49
Income before income taxes 5,036 6,517 16,404 20,263
Provision for income taxes 1,280 1,532 2,728 4,875
Net income  $3,756  $4,985  $13,676  $15,388
Earnings per share:
Basic  $0.48  $0.61  $1.72  $1.87
Diluted  $0.47  $0.61  $1.70  $1.86
Weighted average shares outstanding:
Basic 7,895 8,167 7,952 8,215
Diluted 7,985 8,237 8,041 8,293
Cash dividends declared per common share  $0.36    $0.31    $1.08    $0.93
MICROSOFT CORPORATION
COMPREHENSIVE INCOME STATEMENTS
(In millions)(Unaudited)
Three Months Ended

March 31,

Nine Months Ended

March 31,

  2016   2015   2016   2015
Net income  $3,756  $4,985  $13,676  $15,388
Other comprehensive income (loss):
Net unrealized gains (losses) on derivatives (net of tax effects of $(30), $21, $(2), and $31) (285) 401 (277) 967
Net unrealized gains (losses) on investments (net of tax effects of $186, $68, $(36), and $(158)) 345 125 (66) (295)
Translation adjustments and     other (net of tax effects of $3, $(174), $(18), and $(432)) 7 (438) (339) (909)
Other comprehensive income (loss) 67 88 (682) (237)
Comprehensive income  $3,823  $5,073  $12,994  $15,151
MICROSOFT CORPORATION
BALANCE SHEETS
(In millions)(Unaudited)
  March 31, 2016   June 30,

2015

Assets
Current assets:
Cash and cash equivalents  $7,170  $5,595
Short-term investments (including securities loaned of $241 and $75) 98,382 90,931
Total cash, cash equivalents, and short-term investments 105,552 96,526
Accounts receivable, net of allowance for doubtful accounts of $361 and $335 12,247 17,908
Inventories 2,450 2,902
Deferred income taxes 1,574 1,915
Other 6,598 5,461
Total current assets 128,421 124,712
Property and equipment, net of accumulated depreciation of $18,885 and $17,606 16,831 14,731
Equity and other investments 11,315 12,053
Goodwill 17,948 16,939
Intangible assets, net 4,459 4,835
Other long-term assets 2,895 2,953
Total assets  $181,869  $176,223
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable  $6,759  $6,591
Short-term debt 5,498 4,985
Current portion of long-term debt 0 2,499
Accrued compensation 4,276 5,096
Income taxes 685 606
Short-term unearned revenue 20,876 23,223
Securities lending payable 373 92
Other 5,887 6,766
Total current liabilities 44,354 49,858
Long-term debt 40,896 27,808
Long-term unearned revenue 5,017 2,095
Deferred income taxes 2,674 2,835
Other long-term liabilities 14,122 13,544
Total liabilities 107,063 96,140
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,870 and 8,027 68,012 68,465
Retained earnings 4,954 9,096
Accumulated other comprehensive income 1,840 2,522
Total stockholders’ equity 74,806 80,083
Total liabilities and stockholders’ equity  $181,869  $176,223
MICROSOFT CORPORATION
CASH FLOWS STATEMENTS
(In millions)(Unaudited)
Three Months Ended

March 31,

Nine Months Ended

March 31,

  2016   2015   2016   2015
Operations
Net income  $3,756  $4,985  $13,676  $15,388
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other 1,707 1,515 4,712 4,464
Stock-based compensation expense 672 641 2,004 1,920
Net recognized losses (gains) on investments and derivatives 65 (55) 216 (179)
Deferred income taxes 351 253 177 868
Deferral of unearned revenue 13,073 10,163 36,066 28,385
Recognition of unearned revenue (12,210) (11,209) (35,494) (33,347)
Changes in operating assets and liabilities:
Accounts receivable 2,288 3,655 5,546 6,904
Inventories 241 (430) 408 157
Other current assets (420) (111) (1,914) (550)
Other long-term assets 7 (108) 58 341
Accounts payable (129) (390) 105 (912)
Other current liabilities 626 200 (1,293) (1,952)
Other long-term liabilities 340 492 594 1,332
Net cash from operations 10,367 9,601 24,861 22,819
Financing
Proceeds from issuance (repayments) of short-term debt, maturities of 90 days or less, net 2,622 (6,575) 481 1,222
Proceeds from issuance of debt 25 10,680 13,274 10,680
Repayments of debt (900) 0 (2,771) (1,500)
Common stock issued 159 146 495 483
Common stock repurchased (3,857) (5,131) (12,292) (10,164)
Common stock cash dividends paid (2,842) (2,532) (8,185) (7,386)
Other (123) 316 (366) 601
Net cash used in financing (4,916) (3,096) (9,364) (6,064)
Investing
Additions to property and equipment (2,308) (1,391) (5,688) (4,163)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets (559) (162) (1,330) (3,097)
Purchases of investments (27,341) (30,218) (99,661) (73,470)
Maturities of investments 5,192 5,561 16,229 9,643
Sales of investments 19,599 21,063 76,292 53,616
Securities lending payable (66) (334) 281 (463)
Net cash used in investing (5,483) (5,481) (13,877) (17,934)
Effect of exchange rates on cash and cash equivalents 17 (36) (45) (76)
Net change in cash and cash equivalents (15) 988 1,575 (1,255)
Cash and cash equivalents, beginning of period 7,185 6,426 5,595 8,669
Cash and cash equivalents, end of period  $7,170  $7,414  $7,170  $7,414
MICROSOFT CORPORATION              
               
SEGMENT REVENUE AND OPERATING INCOME
(In millions)(Unaudited)
               
  Three Months Ended

March 31,

  Nine Months Ended

March 31,

   
  2016   2015   2016   2015
Revenue              
Productivity and Business Processes  $6,522    $6,457    $19,518    $19,769
Intelligent Cloud 6,096   5,903   18,331   17,419
More Personal Computing 9,458   9,369   31,563   33,917
Corporate and Other (1,545)   0   (4,706)   295
Total revenue  $20,531    $21,729    $64,706    $71,400
               
Operating Income (Loss)              
Productivity and Business Processes  $2,994    $3,204    $9,461    $10,192
Intelligent Cloud 2,188   2,533   7,168   7,238
More Personal Computing 1,645   1,049   5,178   4,063
Corporate and Other (1,544)   (192)   (4,705)   (1,279)
Total operating income  $5,283    $6,594    $17,102    $20,214

IMPORTANT NOTICE TO USERS (summary only, click here  for full text of notice); All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our  Forms 10-Q and 10-K.

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Visuality Systems and Microsoft expand Server Message Block collaboration to storage systems http://news.microsoft.com/2016/04/11/visuality-systems-and-microsoft-expand-server-message-block-collaboration-to-storage-systems/ http://news.microsoft.com/2016/04/11/visuality-systems-and-microsoft-expand-server-message-block-collaboration-to-storage-systems/#comments Tue, 12 Apr 2016 02:00:20 +0000 http://news.microsoft.com/?p=289291 Read more »]]> REDMOND, Wash., and YOKNEAM, Israel — April 11, 2016 — On Monday, Microsoft Technology Licensing LLC and Visuality Systems Ltd. announced the expansion of their Server Message Block (SMB) collaboration from the embedded world to the enterprise market. This broad partnership will mean enhanced business solutions to more products worldwide.

Visuality Systems has broadened its NQ™ product family by releasing NQ™ Storage, bringing storage platform file-sharing capabilities to even more products and consumers through better interoperability between Windows and non-Windows machines.

“NQ™ Storage reflects 17 years of SMB development experience and is targeted to fill a missing void in the storage market,” said Tal Widerman, marketing manager of Visuality Systems Ltd. “Our joint efforts focus on providing storage developers with a commercial Microsoft interoperability solution stack.”

“The patent and business collaboration between Microsoft and Visuality Systems builds on an already strong partnership that will deliver enhanced business solutions across products for more consumers,” said Nick Psyhogeos, president of Microsoft Technology Licensing. “This relationship enables storage manufacturers to turn their storage system into network attached storage by the integration of Microsoft’s SMB protocol. We are glad to be working with Visuality Systems to maximize the SMB support efficiency in the storage market.”

Microsoft’s commitment to licensing IP

The patent agreement is another example of the important role intellectual property (IP) plays in ensuring a healthy and vibrant technology ecosystem. Since Microsoft launched its IP licensing program in December 2003, it has entered into more than 1,200 licensing agreements. More information about Microsoft’s licensing programs is available at http://www.microsoft.com/iplicensing.

About Visuality Systems Ltd.

Visuality Systems, Ltd. is the leader in the provision of SMB-based solutions for a multitude of operating systems. Since its inception in 1998, Visuality Systems is fully dedicated to the development of SMB implementations. More information about Visuality Systems is available at www.visualitynq.com.

About Microsoft Technology Licensing

Microsoft Technology Licensing LLC was formed in 2014 to acquire, manage and license Microsoft’s patent portfolio.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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Microsoft announces quarterly earnings release date http://news.microsoft.com/2016/04/08/microsoft-announces-quarterly-earnings-release-date-28/ http://news.microsoft.com/2016/04/08/microsoft-announces-quarterly-earnings-release-date-28/#comments Fri, 08 Apr 2016 15:00:31 +0000 http://news.microsoft.com/?p=288958 Read more »]]> REDMOND, Wash. — April 8, 2016 — Microsoft Corp. will publish fiscal year 2016 third-quarter financial results after the close of the market on Thursday, April 21, 2016, on the Microsoft Investor Relations website at https://www.microsoft.com/en-us/Investor/. A live webcast of the earnings conference call will be made available at 2:30 p.m. PDT.

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more. 

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. Shareholder and financial information is available at https://www.microsoft.com/en-us/Investor/.

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Tech leader to establish roots at uCity Square: Microsoft Innovation Center comes to Philadelphia http://news.microsoft.com/2016/04/07/tech-leader-to-establish-roots-at-ucity-square-microsoft-innovation-center-comes-to-philadelphia/ http://news.microsoft.com/2016/04/07/tech-leader-to-establish-roots-at-ucity-square-microsoft-innovation-center-comes-to-philadelphia/#comments Thu, 07 Apr 2016 14:04:17 +0000 http://news.microsoft.com/?p=288778 Read more »]]> PHILADELPHIA — (April 4, 2016) — A new Microsoft Innovation Center (MIC) will open to the public at uCity Square in Philadelphia this summer. The MIC, which is the result of a collaboration between Microsoft Corp., SeventySix Capital, the University City Science Center and Wexford Science & Technology, will be the first in the region and the third in the U.S., with other locations in Atlanta and Miami. The Innovation Center complements and enhances Microsoft’s regional presence, which includes an office in Malvern and a Microsoft Store at King of Prussia Mall. Currently there are over 350 Microsoft employees in the Philadelphia metropolitan area.

Located on the ground floor of the Science Center’s corporate headquarters at 3711 Market Street, the MIC will be equipped with the latest Microsoft technology. Through a combination of programming and outreach activities, Microsoft – working closely with the Science Center and SeventySix Capital – will seek to spur economic development and create new opportunities for the local tech startup community. Further, the MIC will host activities that will bring underrepresented groups to greater awareness of and involvement with STEM activities and careers.

“Bringing Microsoft to Philadelphia and uCity Square is a game changer on many levels,” said Science Center President & CEO Stephen S. Tang, Ph.D., MBA. “Not only have we attracted a large tech company to our city, but the MIC also offers a means to engage our neighborhood, innovation, and entrepreneurial communities and give them access to Microsoft technology and training. It took a true collaboration between SeventySix Capital, Microsoft, Wexford and the Science Center to make this happen.”

“We are thrilled to work with SeventySix Capital, the University City Science Center, and Wexford Science & Technology to bring technology and resources to the great city of Philadelphia,” said Jeff Friedman, director of Modern Government in Microsoft’s State and Local Government Solutions Group. “MICs are part of Microsoft’s broader strategy to empower developers and entrepreneurs, extending into local metro markets to help startups grow their business with technology and services such as cloud computing, developer tools, software and open source technologies.”

The MIC will open in time for the Democratic National Convention (DNC) in July and will serve as a hotbed of Microsoft activity during the convention, with a number of programs and events that explore the intersection of technology and civic engagement.

After the DNC, Microsoft, the Science Center and SeventySix Capital will develop and deliver a suite of ongoing technology and innovation focused programming that will offer the startup, entrepreneurial, academic and neighborhood communities access to Microsoft resources and expertise.

“Microsoft’s presence in uCity Square will enhance our community of ingenuity and become a catalyst to continue innovation and economic growth in our city,” said Joe Reagan, Vice President at Wexford Science & Technology. “With this opportunity, Philadelphia’s flourishing premier innovation district, uCity Square, will work in tandem with Microsoft to attract talent and companies that will bring businesses of all sizes together to advance technology and collaboration. We’re excited to see what the future holds for uCity Square.”

“This is an amazing win for Philadelphia! Jon Powell, our team at SeventySix Capital and I are thrilled to see our hard work pay off to attract Microsoft, a Fortune 50 tech company, to our city,” said Wayne Kimmel, Managing Partner of SeventySix Capital. “Our shared vision with Jeff Friedman at Microsoft to build an open and accessible venue to inspire all people to explore and learn about the latest technological innovations will become a reality this summer during the DNC and beyond because of our collaboration with the Science Center. The MIC will be the legacy of the DNC and will spur future entrepreneurs to create businesses and technologies to change the world!”

About the Science Center The University City Science Center is a dynamic hub for innovation, and entrepreneurship and technology development in the Greater Philadelphia region. It provides business incubation, programming, lab and office facilities, and support services for entrepreneurs, start-ups, and growing and established companies. Since it was founded in 1963, graduate organizations and current residents of the University City Science Center’s Port business incubators have created more than 15,000 jobs that remain in the Greater Philadelphia region today and contribute more than $9 billion to the regional economy annually. The Science Center is leveraging its history as the nation’s oldest and largest urban research park as it joins forces with Wexford Science + Technology, a BioMed Realty company, to expand its footprint and rebrand its physical campus as uCity Square — a true mixed-use community of ingenuity. For more information about the Science Center, go to ucscreview.org.

About Microsoft Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

About SeventySix Capital SeventySix Capital invests in passionate, smart and nice entrepreneurs who are launching game-changing companies in the e-commerce, retail and healthcare industries. Wayne Kimmel founded SeventySix Capital, the Philadelphia area based venture capital fund, in 1999. Recently, Jon Powell joined Kimmel as a Managing Partner at SeventySix Capital. Powell is also the CEO of Kravco, a leading private real estate developer and property management company that developed the King of Prussia Mall. SeventySix Capital’s top exits include, SeamlessWeb – acquired by ARAMARK, now public as GrubHub (NYSE: GRUB), Take Care Health Systems – acquired by Walgreens (NYSE: WAG) and NutriSystem (NASDAQ: NTRI) – top performing stock in the U.S. for 5 consecutive years. Intel, IBM and Yahoo! have also acquired SeventySix Capital portfolio companies. Some of SeventySix Capital’s current portfolio companies include: Adwerx, CareCam Health Systems, Dwolla, Indiegogo, ReverbNation, StartUp Health, and Whistle Sports. SeventySix Capital’s partners are extremely active in the entrepreneurial and non-profit communities around the world. For more information on SeventySix Capital, please visit seventysixcapital.com or at @76capital on Twitter.

About Wexford Science & Technology

Wexford Science & Technology, a subsidiary of BioMed Realty, is a real estate investment and development company specializing in facilities for for-profit and not-for-profit institutions, especially universities, university-related research parks and healthcare systems. Wexford brings a unique approach of collaborating with clients to build knowledge communities which are vibrant, mixed-use, amenity-rich environments that foster innovation. 

About uCity Square Powered by the University City Science Center and Wexford Science + Technology, uCity Square will be the center of Philadelphia’s economic growth in University City by creating a dynamic environment for innovation and collaboration between the private sector and top-tier research institutions such as University of Pennsylvania and Drexel University.

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Microsoft and R3 Partnership to Accelerate Adoption of Distributed Ledger Technologies by Global Banks http://news.microsoft.com/2016/04/04/microsoft-and-r3-partnership-to-accelerate-adoption-of-distributed-ledger-technologies-by-global-banks/ http://news.microsoft.com/2016/04/04/microsoft-and-r3-partnership-to-accelerate-adoption-of-distributed-ledger-technologies-by-global-banks/#comments Mon, 04 Apr 2016 14:31:15 +0000 http://news.microsoft.com/?p=288553 Read more »]]> NEW YORK and REDMOND, Wash. – April 4, 2016 – Microsoft Corp. and the R3 Consortium today announced a strategic partnership that will accelerate the use of distributed ledger technologies, also known as blockchain, among R3 member banks and global financial markets. Distributed ledger technologies enable enterprises and business network participants to complete financial transactions with greater speed, security, cost-efficiency and transparency relative to solutions currently used. In addition, R3 named Microsoft Azure the preferred cloud services provider for its R3 Lab and Research Center serving more than 40 member banks.

Under the terms of the deal, Microsoft will provide cloud-based tools, services and infrastructure for R3 lab locations around the world, as well as dedicated technical architects, project managers, lab assistants and support services. R3’s global labs will drive faster experimentation, provide technical agility and accelerate learning as the financial services industry moves toward validated and certified distributed ledger technology implementations.

“With intelligent, cloud-based technology, R3 and member banks will experiment and learn faster, accelerating distributed ledger technology deployment,” said Peggy Johnson, executive vice president of global business development at Microsoft. “What’s more, our collaboration brings to light tremendous opportunities to rethink business processes and transform entire industries.”

“The partnership between Microsoft and R3 will scale the use of distributed ledger technology in a way that will change the entire financial services industry,” said David Rutter, CEO of R3. “The Azure platform and intelligent cloud services bring advanced capabilities to this budding financial ecosystem, and the commitment by Microsoft will accelerate the adoption of distributed ledger technology around the globe and take our R3 Lab and Research Center offering to a new level of capability.”

R3 and Consortium members will have access to Microsoft’s expanding ecosystem of BaaS partners including Ethereum and ConsenSys, Ripple, Eris Industries, Coinprism, Factom, BitPay, Manifold Technology, AlphaPoint, IOTA, BlockApps STRATO, Tendermint LibraTax, and many others that will aid in the development, testing and deployment of distributed ledger applications in cloud, hybrid and local environments.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

About R3

R3 is a financial technology innovation company led by a team of financial industry veterans, technologists and new tech entrepreneurs, bringing together expertise from electronic financial markets, cryptography and digital currencies. R3 operates in New York, London and San Francisco and with its partners to define, design and deliver the next generation of financial technology.

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Microsoft announces cloud services, developer tools and productivity extensions for every developer http://news.microsoft.com/2016/03/31/microsoft-announces-cloud-services-developer-tools-and-productivity-extensions-for-every-developer/ http://news.microsoft.com/2016/03/31/microsoft-announces-cloud-services-developer-tools-and-productivity-extensions-for-every-developer/#comments Thu, 31 Mar 2016 18:00:51 +0000 http://news.microsoft.com/?p=288229 Read more »]]> SAN FRANCISCO — March 31, 2016 — Thursday at Build 2016, Scott Guthrie, executive vice president of the Cloud and Enterprise Group, and Qi Lu, executive vice president of the Applications and Services Group, demonstrated how Microsoft Azure services and the Office platform can empower developers to more easily leverage advanced analytics, machine learning, emerging cloud development models and the Internet of Things (IoT) to build their intelligent apps. Microsoft also announced new free development tools to help every developer more easily scale their apps for every platform and reach the largest possible number of customers. Steven Guggenheimer, corporate vice president of Developer eXperience, delivered the final Build keynote address to showcase how partners are innovating using Azure, Office and Windows.

“Microsoft is the only cloud vendor that supports the diverse needs of every organization and developer — from core infrastructure services to platform services and tools to software-as-a-service — for any language, across any platform,” Guthrie said. “With 30 regions worldwide — more than every major cloud provider combined — Azure’s massive scale means developers and businesses alike can focus on creating the next generation of amazing applications, not their underlying cloud infrastructure. This makes our cloud the de facto choice for enterprises of today and tomorrow — and today, more than 85 percent of the Fortune 500 agree.”

“In terms of reach, Office is one of the few platforms in the world that provides developers with access to over a billion users across a variety of devices,” Lu said. “The opportunity to build on the Office platform has never been greater. With new extensions and new connections to the Microsoft Graph — an intelligent fabric that applies machine learning to map the connections between people, content and interactions across Office 365 — developers are empowered to build intelligent apps that can transform the landscape of work.”

The intelligent cloud to help developers build their next intelligent app

Guthrie announced on Thursday that Microsoft is helping developers more easily build native cross-platform mobile applications by including Xamarin’s capabilities in Visual Studio Community and also making Xamarin Studio for OS X free as a community edition. In addition, Visual Studio Enterprise subscribers will now have access to Xamarin’s advanced enterprise capabilities at no additional cost. The company also announced a commitment to open source the Xamarin SDK, including its runtime, libraries and command line tools, as part of the .NET Foundation in the coming months.

With these announcements, Microsoft extends its commitment to offering choice and flexibility to every customer across every platform and device — merging the .NET and Xamarin ecosystems together to provide an unmatched mobile development and DevOps experience. Now developers can deliver fully native cross-platform mobile app experiences to all major devices, including iOS, Android and Windows.

Guthrie also announced several new Azure services designed to help developers address today’s operational realities and take advantage of tomorrow’s emerging trends, such as the Internet of Things and microservices. These new capabilities are designed to make Azure the best platform to build the next intelligent app — on Linux or Windows using any language:

  • The general availability of Azure Service Fabric, a microservices application platform developers can use to design apps and services that are available 24×7 at cloud scale. Battle-tested supporting Microsoft cloud services, Service Fabric seamlessly handles application lifecycle management for constant uptime and easy application scaling. Also today, Microsoft announced previews of Service Fabric for Windows Server, for deploying on-premises and other clouds, and Service Fabric for Linux and Java APIs, and said it would open-source the programming frameworks of Service Fabric for Linux later this year.
  • A preview of Azure Functions that extends Azure’s market-leading platform services to serverless compute for event-driven solutions. Functions lets developers easily handle tasks that respond to events common in Web and mobile applications, IoT, and big data scenarios. Functions works with Azure and third-party services, automatically scaling out to meet demand and only charging for the time functions run. With an open source runtime, developers will be able to host Functions anywhere — on Azure, in their datacenter or on other clouds.
  • New Azure IoT Starter Kits available for purchase Thursday. These kits allow anyone with Windows or Linux experience to quickly build IoT prototypes that leverage all Azure’s IoT offerings, for just $50 to $160. In addition, early adopters can now use the Azure IoT Gateway SDK, which enables legacy devices and sensors to connect to the Internet without having to replace existing infrastructure, as well as device management in Azure IoT Hub to maintain and manage IoT devices at cloud scale.
  • A preview of Power BI Embedded, which allows developers to embed fully interactive reports and visualizations in any application, on any device. Guthrie also disclosed that applications can now easily communicate with the fully managed Azure DocumentDB NoSQL service, using existing Apache License MongoDB APIs and drivers.

The Office developer opportunity: unprecedented users, data and intelligence

Microsoft’s Lu, along with Office partners Starbucks Corp., MDLIVE Inc. and Zendesk Inc., showcased how developers can use the Office platform to create new business opportunity and closer customer connections.

Starbucks CTO Gerri Martin-Flickinger showed how Starbucks is developing an Outlook add-in that allows people to send gift cards within Outlook and schedule meetings at nearby Starbucks locations.

“We’re always looking for new ways to engage with our customers outside our stores,” said Martin-Flickinger. “Our work with Office is opening up new opportunities for us to connect with our customers and save them time when they want to combine coffee with meetings. Building on the Office platform is reaching our customers right on their desktop or device and extending the Starbucks Experience to them in new and compelling ways.”

The Microsoft Graph, made generally available last fall, offers developers unified access to insights about how workers can be more productive. Microsoft previewed six new APIs for the Microsoft Graph that let developers link Office 365 data to third-party solutions. For example, one extension automatically compiles and exposes a list of times a group of people are available to meet, making it easier to work across organizations.

Lu also shared how conversational interaction will evolve in the future and how developers can immediately start building apps that engage users in meaningful conversations. The new Skype for Business App SDK and Skype Web SDK announced Thursday allow companies to integrate Skype calls directly within their Web or device offering, greatly enhancing the service and connection they can provide to their customers.

The company also showed off new functionality that lets developers build apps and place them directly into Word, Excel and PowerPoint ribbons.

Finally, the developer portal for Office 365 Connectors is now available for developers to write and publish their own connectors. Connectors deliver relevant content, such as updates on financial records or helpdesk logs, from popular apps and services directly into Office 365 Groups conversations. The developer portal is launching with connectors such as Asana, Salesforce, Trello, Twitter, UserVoice, Zendesk and many more.

Developers and partners innovate on Windows, Azure and Office

  • Steve Guggenheimer, Microsoft corporate vice president and chief evangelist, and John Shewchuk, a technical fellow and the “chief geek” for the Developer Experience (DX) team, demonstrated how partners are building on Microsoft’s platforms. As the actor Kevin Hart helped highlight in their opening video, everyone wants to be a developer these days. Guggenheimer and Shewchuk showed a few of the most interesting scenarios, tools and frameworks that developers have been working on recently with Microsoft.
  • Muzik LLC’s new SDK turns Muzik’s headphones into a platform. Developers can take advantage of the wide variety of sensors in the headphones to create apps for Windows, iOS and Android devices.
  • Highspot demonstrated support for the Office 365 Graph and Add-in model, along with embeddable Power BI, as well as intended support for Microsoft Bot Framework, announced at the Build opening keynote.
  • Rita Zhang, a developer in DX, helped show how easy it is to take an existing Spring-based Java application and move it to Microsoft Azure using Pivotal Cloud Foundry. The demo also showcased investments Microsoft has been making to support an S3Proxy for Microsoft Azure Storage through support for the Microsoft Azure Java SDKs.
  • New Microsoft Edge extensions partners were announced, including Pinterest, Reddit Enhancement Suite, Adblock, Adblock Plus, LastPass, Amazon Assistant, Evernote Corp., and Page Analyzer, powered by Vorlon.js.
  • Square Enix Inc. and Io-Interactive AS have begun to use Azure for enabling next-generation gaming in “Hitman.”
  • Vuforia’s Augmented Reality SDK for the Windows 10 Universal Windows Platform supports Windows 10 devices, including Microsoft HoloLens.
  • Xbox partners such as Nickelodeon, Dailymotion, NASCAR and Hulu LLC announced plans to bring Windows 10 Universal Windows apps to Xbox One later this year.
  • A collaboration between the Quest Institute Inc. and Microsoft provided the first Windows IoT implementation in space. Three students from Valley Christian Schools in San Jose, Calif., demonstrated their experiment, which will run on the International Space Station and test the pliability of metals.

Microsoft (Nasdaq “MSFT” @microsoft) is the leading platform and productivity company for the mobile-first, cloud-first world, and its mission is to empower every person and every organization on the planet to achieve more.

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://news.microsoft.com. Web links, telephone numbers and titles were correct at time of publication, but may have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at http://news.microsoft.com/microsoft-public-relations-contacts.

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