Azure gross margins were a "key component" of the 8 percentage point improvement in commercial cloud services from the same period a year ago, Chief Financial Officer Amy Hood said.
Microsoft said commercial cloud annualised revenue run rate reached US$20.4b in the quarter. This includes the Azure cloud, subscriptions of Office 365, as well as Dynamic 365 apps for customer relationship management and enterprise resource planning.
Microsoft reported a better-than-expected quarterly profit as demand for its cloud computing services for companies rose and personal computer software business stabilised.
Gaming revenue was down 1 percent, as Microsoft prepares for the launch of the Xbox One X console on November 7. Revenue in Intelligent Cloud rose 14% to $6.92 billion, while revenue in Productivity and Business Processes climbed 28% to $8.24 billion. As usual, things like Surface, Office 365, cloud services like Azure, and Windows all saw growth.
Microsoft managed to grow both revenue ($24.5 billion, up 12%) and profits ($6.6 billion, up 16%), showing the gains were not simply due to cutting. Office 365 commercial revenue has increased by 42 percent while the consumer version of Office 365 now has 28 million subscribers.More news: Bloodhound preps for land speed record with 200MPH test run
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Microsoft Corporation shares were trading at $78.93 per share on Thursday afternoon, up $0.30 (+0.38%). As usual, cloud services continue to be among the fastest growing parts of Microsoft's business.
As you can see from the image above, the biggest areas of growth, in terms of percentage, are Azure, Dynamics 365, and Office 365 commercial.
LinkedIn reported revenue of $1.1 billion in the previous quarter and it once again came in at exactly the same number. The rest is a 2% (2% in CC) increase in server revenue.
Revenue in Microsoft's More Personal Computing segment, which includes Windows as well as the mobile-phone and gaming businesses, stayed flat at about $9.4 billion.
MPC (more personal computing) segment derives the majority of its revenues from the PC (personal computing) market. Search acquisition costs jumped 15 percent. As for the Xbox division, revenue increased by only 1 percent, Xbox software and services revenue growth saw an increase of 21 percent offset by lower hardware revenue. The 12% increase (11% in CC) can be attributed to sales of the Surface Laptop.