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Microsoft doubled its Azure cloud revenue to $2.7B last year, analysts estimate
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Microsoft doubled its Azure cloud revenue to $2.7B last year, analysts estimate

Microsoft’s revenue from its Azure cloud platform greater than doubled in 2016, reaching $2.7 billion, in accordance to an estimate from JP Morgan analysts, as quoted in the Wall Street Journal this weeokay.

The quantity, which has not been confirmed by the corporate, provides a way for the expansion of Microsoft’s cloud platform and in addition the hole between Microsoft and the general public cloud chief, Amazon Internet Companies, which reported more than $12 billion in revenue for a similar time interval.

A separate estimate quoted within the Wall Avenue Journal, from analyst Aaron Kessler of Raymond James, pegged Google Cloud Platform’s revenue at greater than $1 billion for the yr.  The search big’s cloud initiatives are led by Google senior vp Diane Greene, co-founder and former CEO of VMware, who joined Google as an executive in late 2015.

We’ve contacted Microsoft, Raymond James and JP Morgan for extra particulars on the numbers.

Neither Google nor Microsoft publicly studies revenue particular to its cloud platform. Microsoft publicly reported an annualized “commercial cloud run rate” of more than $14 billion as of the top of 2016. That quantity consists of Azure’s outcomes, but additionally different business cloud merchandise, together with Workplace 365 cloud purposes, which suggests it may’t be in contrast straight to the Amazon Internet Companies numbers.

Microsoft’s greatest line of enterprise is Workplace, which pulled in about $23.6 billion in revenue within the fiscal yr ended June 30, up barely from the yr earlier than, in accordance to numbers disclosed in Microsoft’s annual 10-Okay submitting last yr. Server merchandise and instruments had been second with $19.2 billion in revenue for the yr, whereas Home windows was third in annual revenue, at $14.7 billion.

A latest report from Synergy Research Group confirmed Amazon sustaining greater than 40 p.c market share within the cloud amid a giant leap within the general measurement of the market. The following three rivals, Microsoft, Google and IBM, had been in a position to increase their collective market share by 5 proportion factors within the fourth quarter, reaching a mixed 23 p.c of the worldwide marketplace for Infrastructure as a Service and Platform as a Service, in accordance to Synergy. The analysis agency cited “significantly sturdy development at Microsoft and Google.”

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