Microsoft is extending the life of its cloud servers by two years

As Microsoft’s new fiscal year started in July, Amy Hood, Microsoft’s Chief Financial Officer, shared the company’s changes to its cloud services. The servers that allow Microsoft customers to take advantage of Azure, the tech giant’s cloud platform, will see their lifespan increase from four to six years. This expansion is a double-edged sword, because if the American company expects savings, it could worry its customers and processor manufacturers.

A news that does not please component manufacturers

When announcing the results for the previous quarter, Amy Hood emphasized the benefits of these changes. According to her, the investments made by the company have increased the efficiency of Microsoft’s cloud servers, which today makes it possible to increase their lifespan by two years. The CFO thus estimates that the company’s results will be characterized by an increase of 3.7 billion dollars by the end of the financial year 2023.

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The company does not go into specific details about the improvements to its cloud infrastructures, but the changes involve longer use of the components present on the servers. A news that does not please AMD, Intel and Ampere, Microsoft’s historical suppliers. Increasing the lifespan of servers means that the frequency of purchasing new components is reduced.

This situation is all the more worrying for Microsoft customers as they will have to rely on an aging infrastructure. In six years, the manufacturers will probably have already produced three new generations of processors, clarifies The register. Other innovations in terms of improving network infrastructures will also take place during this period.

Microsoft follows the competition

The competition announced the same type of expansion in early 2022. Google now offers servers for four years, and those from Amazon Web Services (AWS) have a five-year lifespan. Businesses may be tempted to switch cloud providers if Microsoft’s new proposals threaten to affect them.

Although AWS remains the world leader in cloud-related services with 33% market share in the first quarter of 2022, Microsoft also maintains a strong position of 22%. Quarter-over-quarter, cloud has helped boost the company’s bottom line, with Azure revenue growing by 46% year-on-year in Q1 2022. Behind this change, it is possible to give the company intentions of sustainable development, but customers especially hoping for a reduction in the price of the service.

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