Microsoft’s Cloud OS Business Is Showing Rapid Growth, Commercial Cloud Revenue Grew 147%

Microsoft Commercial

According to me, the real highlight of Microsoft’s quarterly financial results releases yesterday was regarding their Cloud OS business. Cloud OS represents the fastest growing opportunity for Microsoft. Quarter after quarter, Microsoft is driving growth and customer adoption. In fact, commercial cloud revenue grew 147% with an annualized run rate that exceeds $4.4 billion. Also, server products revenue, including Azure, grew 16%, with double-digit growth for SQL Server and System Center.

“Our results reflect our customers’ long-term commitments to our products and services, and strong execution by our field teams. We are thrilled with the tremendous momentum of our cloud offerings with Office 365 and Azure both growing over 100% again,” said Kevin Turner, chief operating officer at Microsoft. “Looking forward, we are excited by the amazing opportunities enabled by our technology roadmap and our strong engagement across partners, customers, and developers.”

Satya Nadella commented the following on Cloud OS business during the earnings call,

In FY15 we will make investments to drive this strategy forward. We will expand our Azure datacenter footprint and increase capacity in existing regions. We will launch new higher level services, including Azure Machine Learning that currently is in preview. We will expand our hybrid solutions with new services such as StorSimple, InMage as well as our server products all offering cloud tier-ing. We will continue to build out the EMS value proposition, and we will expand our sales efforts to drive growth.

Source: Microsoft