Microsoft pulled in $21.7bn in revenues for the three months ending March 31, 2015, up 6 per cent year on year. But the company said its commercial cloud revenue more than doubled in the past quarter alone.
Microsoft reported mixed success in its devices segment (Surface revenues increased 44 per cent; phone revenues decreased, with volumes this quarter shifting from 10.5 to 8.6 million units sold) and Windows OEM revenues declined.
But he company reported commercial cloud revenue grew 106 per cent (111 per cent in constant currency), driven by Office 365, Azure and Dynamics CRM Online. Microsoft claims its cloud services now have an annualized revenue run rate of $6.3bn.
Office 365 and Azure accounts for a great deal of that growth according to Satya Nadella, Microsoft’s chief exec. Office 365 consumer subscribers increased to over 12.4 million, up 35 per cent sequentially
“We have 50 trillion objects stored in Azure, a three times growth year-over-year in storage transactions, and more than five trillion in March alone. And Azure websites are growing with nearly half a million sites hosted,” Nadella said during a call with analysts and journalists this week.
“It’s clear that we are well on our way to transforming our products and businesses across all of Microsoft. The early signs are evident in how our customers are using our products.”
“Our momentum in the cloud is a highlight. Increasingly, customers are choosing Microsoft cloud services to transform their own businesses, going beyond just moving existing workloads to the cloud. These results showcase our ability to transform and perform simultaneously.”
However, Office commercial products and services revenue declined 2 per cent.
“Enterprise penetration is accelerating with over half of all agreements signed during the quarter including cloud services,” added Amy Hood, the company’s chief financial officer.