“Cloud is Strong” according to Microsoft Q2 2016 Earnings

I’ve previously blogged about Azure being the future of the Enterprise data center. Some times it can be difficult to tell how well Microsoft’s Cloud business (Azure and Office 365) are doing. Good news for us is that when Microsoft releases their earnings, they do give a glimpse of how well the different divisions of the business are doing in the form of dollar ($) signs. Microsoft’s Q2 2016 ending Dec. 31, 2015 shows strong growth in their cloud service offerings.

Microsoft’s revenue in Intelligent Cloud grew by 5%, up to $6.3 Billion. Most notably the revenue from Microsoft Azure grew 140% with Azure premium services growth of nearly 3x year-over-year. If there’s been any doubt in your mind on adopting Microsoft Azure services, this revenue growth should help alleviate any concerns of Microsoft’s Azure and Cloud business. Another area of 3x growth year-over-year is the adoption of Enterprise Mobility solutions by over one third of Fortune 500’s.
Microsoft’s revenue in Productivity and Business Processes declined by 2%. At first glance this looks to be pretty bad news for products grouped within this such as Office, Office 365 and Dynamics. However, drilling into the numbers Office, Office 365 and Dynamics are the exact areas within Productivity and Business Processes that showed growth. The strongest growth was seen in Office 365 which showed a near 70% growth in revenue; along with a total Office 365 consumer subscriber increase to 20.6 million. Next is revenue growth for Dynamics of 11%. Overall, this is really good news for the Office and Dynamics product offerings.
If you’re interested in seeing more detailed financial, please refer to the official Microsoft Q2 2016 Earnings Release.

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Chris Pietschmann

Chris is an Azure Solutions Architect with more than 14 years of experience building Enterprise systems using a wide array of Microsoft technologies, including Bing Maps and the Microsoft Azure cloud. He has been a 5 time recipient of the Microsoft MVP award. Chris has successfully implemented numerous Enterprise solutions on the Microsoft Azure Cloud Platform since its initial release all the way back in 2010.

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