Microsoft sees huge gains in commercial cloud revenue

Microsoft released its quarterly earnings Tuesday. Overall, the company’s fourth quarter revenue grew 10 percent, and earnings per share grew 12 percent year-over-year, exceeding Wall Street expectations.

You can read the full release here.

One of the most striking things in Tuesday’s earnings report is the continued rapid growth of Microsoft’s cloud services. Our commercial cloud revenue increased by 147 percent over the comparable quarter last year, driven by strong growth in Office 365, Azure, Dynamics CRM and other commercial cloud services.

As the attached chart shows, the commercial cloud annual revenue run rate has basically doubled each of the past two years, and now stands at $4.4 billion and is climbing rapidly.

Doubling a billion-dollar business in a single year is hard. Doing it two years in a row means Microsoft is providing terrific value to our customers.

Microsoft News Center Staff