Microsoft continues to gain cloud growth

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Microsoft continues to gain cloud growth

Simon Quicke

Microsoft is continuing to deepen its position in the cloud as the software giant increases its Azure business and gains more users for its hosted Office software suite.

The vendor revealed a 150% climb in Azure revenues and an additional 1m Office subscribers in its first quarter numbers that delivered a net profit of $5.66bn, down by 6.5% on the same period last year, but better than some market watchers had expected.

Microsoft CEO Satya Nadella, who has only been in the hot seat since February, was able to talk about the firm continuing to make a transition to a "mobile-first, cloud-first world".

He said that its commercial customers "continue to embrace out cloud solutions" and it was well positioned for long-term growth and it was making efforts to make sure it could bring future innovation to the market at a quicker pace.

Commercial revenue improved by 7% to $12.23bn, with Office 365 turnover more than doubling and Azure adding 40 new features that were designed to appeal to developers to add depth to the cloud platform.

Windows volume licensing revenue improved by 11% and OEM climbed by 4% with Lync, Sharepoint and Exchange all saw double-digit year-on-year improvements. Office 365 has now reached 4.4m subscribers and the vendor saw its Surface business improve by 50% making it worth $500m.

On the consumer side of the business the first quarter also saw 1.2m Xbox One consoles sold and the firm managed to keep the Xbox 360 ticking over with 0.8m units going out the door.


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