Microsoft today released their second quarter financial results and as usual they posted some strong numbers. According to me, the real star was the Commercial Other revenue segment. Commercial Other includes Office 365 for enterprise, Azure services and CRM online services. Commercial cloud revenue grew 114% driven by Office 365, Azure and Dynamic CRM Online, and is now on an annualized revenue run rate of $5.5 billion. Revenue for this quarter is now at $2.6 billion and gross margin is at $900 million.
Commercial Other revenue increased $813 million or 46%, due to higher Commercial Cloud revenue and Enterprise Services revenue. Commercial Cloud revenue grew $696 million or 114%, mainly due to subscriber growth of 88% and higher premium mix of Office 365 Commercial, and continued revenue growth from Microsoft Azure. Enterprise Services revenue increased $117 million or 10%, mainly due to increased Premier Support Services, driven by growth in our core product support services.
Commercial Other gross margin increased $485 million or 117%, due to higher revenue, offset in part by a $328 million or 24% increase in cost of revenue. The increase in cost of revenue was mainly due to higher datacenter and other online infrastructure expenses, reflecting increased support of our growing Commercial Cloud, as well as increased costs to deliver Enterprise Services revenue.
As the revenue from traditional Windows and Office licenses declining YoY, Microsoft is successfully transitioning their business to the cloud. Again, this is just a start and there is a great momentum behind all of the enterprise services from Microsoft. I hope Microsoft will be able to capitalize on it for a great future.