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Microsoft’s Intelligent Cloud group posts a 17 percent jump in revenue on 93 percent growth for Azure

Cloud computing has been (*17*) sturdy a part of Microsoft’s turnaround throughout CEO Satya Nadella’s tenure as CEO, and its Intelligent Cloud group picked up the growth tempo barely in its third fiscal quarter.

Revenue from the Intelligent Cloud group was $7.9 billion, (*17*) 17 percent enhance over the prior yr, and following growth of 15 percent throughout Microsoft’s second fiscal quarter. The group generated $2.65 billion in working revenue throughout the third quarter, up 24 percent in comparison with the prior yr.

Azure, Microsoft’s cloud infrastructure service, grew at 93 percent throughout the quarter. That’s (*17*) slight lower from 98 percent growth in the final quarter, however provided that Microsoft hasn’t disclosed revenue from Azure it’s laborious to say how significant that actually is. Revenue from Workplace 365 Industrial rose 42 percent throughout the quarter, whereas revenue from server merchandise grew 20 percent.

Microsoft’s business cloud revenue, which was (*17*) intently watched metric over the previous few years after Nadella set a $20 billion-a-year revenue goal again in 2015, reached $6 billion throughout the quarter. This contains gross sales of the SaaS merchandise like Workplace 365 Industrial that aren’t a part of the Intelligent Cloud group.

CEO Satya Nadella shed new mild on (*17*) few metrics throughout (*17*) convention name following the discharge of Microsoft’s outcomes. Workplace 365 now has 135 million month-to-month energetic customers, and Azure Cosmos DB, (*17*) new database unveiled nearly (*17*) yr in the past, is on (*17*) $100 million-(*17*)-year revenue tempo, he stated.

“We made the appropriate funding choices, and they’re having an impression,” Nadella stated. The corporate is wanting for Azure growth on the greater ranges of the stack — corresponding to databases and synthetic intelligence companies — to offset (*17*) slight gross margin decline as Azure turns into (*17*) bigger a part of Microsoft’s total business cloud revenue.

In the course of the quarter, Microsoft invested $3.5 billion in capital expenditures “in order to help growth in our cloud choices,” the corporate disclosed in presentation slides accompanying its earnings launch. Earlier this week Google surprised cloud watchers with its $7.67 billion outlay on capital expenditures, though round half of that quantity concerned property acquisitions.

Looking forward to the following quarter, Microsoft Chief Monetary Officer Amy Hood stated to count on between $8.95 billion and $9.15 billion in revenue from the Intelligent Cloud division.

(Editor’s word: This put up was up to date a number of occasions Thursday afternoon as extra info turned obtainable.)

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