No surprise as Microsoft Office 365 commercial revenue jumps by 30%

Microsoft’s stock market value yesterday (25 April) briefly topped $1trillion driven by higher than expected cloud revenue growth. Office 365 commercial revenue was up by 30% as the Washington-headquartered tech giant continues to drive users towards cloud adoption.

Microsoft, which becomes one of just three public firms to hit the $1trillion market alongside Apple and Amazon, says that Dynamics products and cloud services revenue increased 13% driven by Dynamics 365 revenue growth of 43%.

Revenue in Intelligent Cloud was $9.7 billion and increased 22%, with a fairly astonishing Azure revenue growth of 73%.

“Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners and targeted strategic investments.”

The growth comes as Microsoft continues to drive cloud adoption via restrictions to its perpetual licensing model – contact editor asap if you are a law firm with a view on this topic.

Meanwhile, here is a recap of some of the fairly extraordinary highlights of Microsoft’s 2018 year end accounts:

– In fiscal 2018, Microsoft delivered $110.4 billion in revenue

– Its commercial cloud business delivered more than $23 billion in revenue, exceeding what CEO Satya Nadella described as “the ambitious goal” of $20 billion

– Microsoft expanded its commercial cloud gross margin to 57 percent, up 7 points year-over-year

– More than 135 million people use Office 365 commercial every month

– Microsoft Teams is being used by more than 300,000 organizations including 87 of the Fortune 100

– Windows 10 is now active on nearly 700 million devices around the world

– Dynamics 365 seats grew 52 percent year-over-year

– Azure revenue grew 91 percent year-over-year

– Microsoft expanded its global datacenter footprint to 54 regions

– Azure Cosmos DB — the first globally distributed, multi-model database to help organizations convert their data into insights and experiences has exceeded $100 million in annualized revenue

– Customers highlights – Walmart — the world’s largest company by revenue, and its biggest private employer — chose Azure and Microsoft 365 to fuel its digital transformation