Microsoft Q1 results show cloud is still a major earner

Azure revenues grew by 76% in the first quarter

Microsoft Azure

Cloud has once again been a big earner for Microsoft, with the company posting Azure revenue growth of 76% over the last quarter. Server products and cloud services have grown by 28%, while its "intelligent cloud" division has increased revenues by a quarter compared to the second quarter of 2018.

However, the growth of Microsoft's Azure-related products has slowed since the previous quarter, which stood at a hefty 89%. It's not too much of a concern for analysts as it would seem because many are still predicting the company's cloud-focused business will continue to be the most important part of Microsoft's success.

Microsoft doesn't detail individual revenue streams in its Azure division, making it hard to judge where the majority of growth is (ie., platform, server, services), but the company's CFO Amy Hood said on its earnings call that the demand for hybrid services was one worth watching and Microsoft would continue to grasp the opportunity presented by businesses looking for hybrid set-ups in their digital transformation efforts.

"We are seeing larger and longer-term customer commitments to the cloud," she told analysts on the call.

Advertisement - Article continues below
Advertisement - Article continues below

But it's not just Azure performing well in the cloud space. The company's cloud, server and Office departments combined generated $18.4 billion in revenue last quarter. Office 365 revenues, specifically in the commercial products and services sector rose by 17% and Office 365 commercial revenues grew 36% quarter-on-quarter. The company also added that active customers using its Office 365 services has grown significantly - topping 155 million at present.

The company's total first-quarter revenue was up 19% over the previous year, reaching $29.1 billion, with its income rising 34% up to $8.8 billion.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now


Network & Internet

BT unveils barrage of new business services

9 Oct 2019
Network & Internet

Zyxel Nebula Control Center 2019 review

21 Jun 2019

Most Popular

data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
cyber security

If not passwords then what?

8 Jan 2020
Policy & legislation

GDPR and Brexit: How will one affect the other?

9 Jan 2020
web browser

What is HTTP error 503 and how do you fix it?

7 Jan 2020