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 Channel Futures

Cloud


Microsoft39s commercial cloud revenue rose 114 percent in the fiscal 2015 second quarter

Microsoft: Commercial Cloud Revenue Up 114%

  • Written by Dan Kobialka 1
  • January 27, 2015
Microsoft more than doubled its commercial cloud revenue in the fiscal 2015 second quarter. The technology giant's commercial cloud revenue is now on an annualized revenue run rate of $5.5 billion as well

Microsoft (MSFT)’s commercial cloud revenue rose 114 percent in the fiscal 2015 second quarter, marking its sixth consecutive quarter of triple-digit commercial cloud revenue growth. The technology giant’s commercial cloud revenue is now on an annualized revenue run rate of $5.5 billion too.

Microsoft CEO Satya Nadella attributed his company’s commercial cloud revenue success to its Office 365, Azure and Dynamic CRM Online services.

“Azure services continue to grow in appeal to enterprise IT and developers with rapid improvements across hybrid services, premium cloud storage and virtual machine offerings, enhanced data and data analytics offerings,” he said during yesterday’s earnings call. “Office 365 now includes new application experiences on all phones and tablets for mobile productivity … [and] we continue to invest in enterprise value by integrating mobile device management (MDM) and the Enterprise Mobility Suite into Office 365.”

Nadella noted that his company is focused on extending its cloud leadership and taking steps to “deliver new experiences, new categories and new opportunities” to customers.

He also pointed out that Microsoft made several key acquisitions during the quarter that could help it further extend its cloud market reach, including:

  • Acompli — a mobile email apps provider.
  • Aorato — an Israeli enterprise security company.
  • HockeyApp — a mobile crash analytics and beta distribution service for iOS, Android and Windows Phone.

And this month, Microsoft has already announced the additions of e-Discovery technologies provider Equivio and Revolution Analytics, a commercial provider of software and services for R (the world’s most widely used programming language for statistical computing and predictive analytics), to its portfolio as well.

“Last week, we announced an agreement to purchase Revolution Analytics, the leading provider of statistical computing and predictive analytics, which will enable our customers to unlock big data in size,” Nadella said. “[And] we’re bringing on new capabilities in machine learning as applied to e-Discovery and other enterprise compliance processes with the acquisition of Equivio.”

Click here for Talkin’ Cloud’s Top 100 CSP list

Overall, Microsoft recorded $26.5 billion in total revenue in FY15 Q2, and Nadella said he believes that his company will continue to make progress toward becoming “the productivity and platform company with a mobile-first, cloud-first world.”

Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at dan.kobialka@penton.com.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Channel Research Cloud

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