AABP EP Awards 728x90

Microsoft cloud could rain on profits

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Microsoft Corp.’s push into cloud computing will help the company compete with Google Inc., Apple Inc. and Salesforce.com Inc. It also will hurt profit margins, Bloomberg said. The company’s cloud software lets corporate customers pay a subscription to do things like manage spreadsheets and corporate websites with software stored and run on Microsoft’s servers. The new services also help users view television shows and edit photos on the Web. The cost of storing software in Microsoft’s data centers, such as the one in West Des Moines, combined with other expenses, means the company might miss profit estimates for fiscal 2012, said Heather Bellini, an analyst at Goldman Sachs Group Inc.