Microsoft has extended the life of the machines powering its cloud by two years and will bank billions as a result.
"We are extending the depreciable useful life for server and network equipment assets in our cloud infrastructure from four to six years," chief financial officer Amy Hood told investors last week during Microsoft's Q4 2022 earnings call. "Investments in our software that increased efficiencies in how we operate our server and network equipment as well as advances in technology have resulted in lives extending beyond historical accounting useful lives," she added.
Those investments will save Microsoft billions every year. Hood predicted the change will make a $3.7 billion difference to Microsoft's bottom line during FY 2023 alone, which is now underway, with a $1.1 billion benefit in Q1.
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