2022 was another great business year for Microsoft. And as a direct consequence, that made last year also a good one for their customers and partners. Despite the economic and social turmoil of the post-lockdown world, the company reported an impressive and continuous growth of both revenue and net profit.
More importantly, Microsoft actively used these resources to further strengthen and expand their position as the world’s leading provider of an intelligent cloud platform. With that platform approach, the company optimally support their customers and implementation partners in their digital transformation initiatives.
Microsoft’s turnover and profit continued to grow in 2022. Revenue grew by 18% to $198 billion and profit even increased by 19% to $ 70 billion. With its comprehensive offering of modern, cloud-based products and services, the company took full advantage of the impetus that the COVID crisis has given to the digital transformation of our society.
The good news for Microsoft customers and partners is that the company decided to reinvest a large part of its growing profits in Research & Development, with the aim of further improving its software solutions and services in the future. In the 2022 fiscal year, Microsoft invested no less than $ 24.5 billion in Research & Development – that’s 12% of the total revenue. That expense represented an 18%, or $3.8 billion, increase compared to the previous year.
These huge, year-after-year R&D investments make Microsoft the undisputed frontrunner in the IT industry. And that’s important for customers and partners who need ongoing innovation to serve their current and future customers better that their competitors. On a higher abstraction level, this means that the ability to invest heavily in R&D increasingly separates the market winners from the vendors who are forced to stay behind.
In 2022, Microsoft continued their strong and consistent strategy for the Dynamics 365 product family of ERP and CRM solutions. The company succeeds time and again in expanding and improving these products, including the ongoing integration with the surrounding products from Microsoft’s powerful intelligent cloud platform – such as Office (productivity), Teams (collaboration), Power BI (reporting and insights) and Power Apps (low-code development). This strategy is the basis for continuous growth in the amount of customers and market share.
If you have plans for 2023 to upgrade or modernize your existing ERP or CRM solutions, it certainly makes sense to give Microsoft Dynamics 365 a position on your shortlist.
Would you like to learn how we can help with your transition to Microsoft Dynamics 365 Business Central? Get in touch.