2022 Was another great business year for Microsoft. And as a direct consequence, that made the previous year also a good one for her customers and partners. Despite the economic and social turmoil, 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 her position as the world’s leading provider of an intelligent cloud platform. With that platform approach, the company optimally supports her customers and implementation partners in their digital transformation initiatives.
Microsoft’s turnover and profit continued to grow in 2022. Revenue grew with 18 percent to $ 198 billion and profit even increased with 19 percent 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 the Microsoft customers and partners is that the company decided to reinvest large parts of its growing profits in Research & Development. With the aim of further improving its software solutions and services towards the future. In fiscal year 2022, Microsoft invested no less than $ 24,5 billion in Research & Development. That is 12 percent of the total revenue. And that expense represented an 18 percent or $ 3,8 billion increase compared to a year earlier.
These huge year-over-year R&D investments makes Microsoft the undisputed frontrunner in the IT industry. And that is 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: the ability to invest heavily in R&D increasingly seems to separate the winners in the market from the vendors who are forced to stay behind.
In 2022, Microsoft continued her 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. Important in this regard is 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 a continuous growth in the number of customers and market share.
In summary: 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.