Microsoft commercial cloud sales surpass $50bn for 1st time in FY20


As the digital tech intensity becomes key to business resilience, the commercial cloud business of Microsoft surpassed $50 billion in revenue for its fiscal year 2020 for the first time, up 36 per cent year-over-year.

The company reported $13.4 billion for its Intelligent Cloud segment in its fourth quarter of fiscal year 2020, increasing 17% and 19% in constant currency, slightly ahead of expectations and driven by continued customer demand for differentiated hybrid offerings.

“On a significant base, server products and cloud services revenue increased 19 per cent and 21 per cent in constant currency. Azure revenue grew 47 per cent and 50 per cent in constant currency, in line with expectations, driven by continued strong growth in our consumption-based business,” said the company CEO Satya Nadella during the earnings call.

“In our per-user business, growth continued to moderate, given the size of our enterprise mobility installed base, which grew 26 per cent to over 147 million seats,” he informed.

New capabilities in Azure Stack HCI are helping organizations bring the cloud to their very own data centers.

At the data layer, Azure is the only cloud with limitless data and analytics capabilities that can deliver a cloud-native data estate for every organization, said Nadella.

In June, around 13.5 billion transactions were processed in Azure Cognitive Services, 2.5 billion messages sent, 9 million hours of speech transcribed.

“Organizations that build their own digital capability will recover faster and emerge from this crisis stronger. We are seeing businesses accelerate the digitization of every part of their operations from manufacturing to sales and customer service to reimagine how they meet customer needs from curbside pickup and contactless shopping in retail to telemedicine and healthcare,” Nadella elaborated.


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