Microsoft’s revenue from Azure and Surface products soars

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Microsoft’s revenue and profits rose in the past quarter. Revenue from Azure, in particular, increased by 89 percent. Microsoft also managed to get more money with the sale of Surface products; turnover from this increased by 11 percent.

Microsoft’s quarterly revenue of the Intelligent Cloud division grew 14 percent to $6.9 billion. An important growth factor was Azure; the turnover growth of this amounted to 89 percent. According to Microsoft, the quarter marked the 13th consecutive quarter of double-digit growth for Azure. Two years ago, Microsoft CEO Satya Nadella set a goal of achieving $20 billion in cloud services in revenue, and Microsoft seems on track to make that happen.

The quarterly revenue of the More Personal Computing division fell by 1 percent to $ 9.4 billion. Surface product sales rose 11 percent to $1.04 billion. According to Microsoft, this was due to good sales of the Surface laptop. Gaming revenue remained virtually unchanged at $1.9 billion. Xbox console sales declined, but growth in software and services revenues offset this. The phasing out of Windows Phone depressed the turnover from More Personal Computing; which fell by 315 million dollars.

Commenting on the quarterly results, Satya Nadella reported that Microsoft now has 120 million monthly Office 365 users and 530 million LinkedIn users. The total number of consumer Office 365 subscribers increased from 24 million last year to 28 million today. Sales of the Productivity and Business Processes division, which includes Office, rose 28 percent to $8.24 billion. The number of monthly active Windows 10 devices also increased by 90 percent compared to last year. Business OEM license sales for Windows 10 increased by 7 percent, but those for consumer systems fell by 1 percent.

Microsoft’s total revenue for the first quarter of its fiscal year 2018 came in at $24.5 billion, up 11 percent from last year. Earnings were $6.6 billion, compared to last year’s quarterly profit of $5.7 billion.

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