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Home Market dynamics

Microsoft's financial report highlights that cloud business has become the main source of revenue, and Azure services continue to play an important role in driving it.

Author: Mash Yang
2023-07-26
in Market dynamics, network, observe
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In addition to Google's financial resultsMicrosoft also announced its fourth-quarter financial results for fiscal year 6 ending at the end of June this year, showing that revenue reached US$2023 billion, an increase of 562% over last year, and net profit reached US$8 billion, an increase of 201% over the same period last year.

Microsoft's financial report highlights that cloud business has become the main source of revenue, and Azure services continue to play an important role in driving it.

Among them, the revenue of the Intelligent Cloud Department, including Azure, SQL Server, Windows Server, Visual Studio, Nuance, GitHub and other services, reached US$239.9 billion, a year-on-year increase of 15%, while the revenue of the Productivity and Business Process Department, including Office suite, LinkedIn and Dynamics and other services, was US$182.9 billion, a year-on-year increase of 10%.

As for the personal computing department's revenue from traditional Windows operating system licenses, hardware devices, games, and search advertising, it was US$139.1 billion, a 4% decrease compared to the same period last year, highlighting that Microsoft now uses cloud business as its main source of revenue, and more and more service products are built in a cloud-native form.

However, Microsoft did not specifically list the revenue performance of its Azure cloud platform business. With AWS and Google Cloud also showing growth, it seems difficult to measure the gap between Microsoft's current cloud business development and its competitors. However, Microsoft's CEO said in a conference call that if the Intelligent Cloud department's annual revenue can reach US$1100 billion, the actual revenue share of Azure services can reach more than 50%.

Regarding the development of artificial intelligence (AI) technology, Microsoft will continue its collaboration with OpenAI, emphasizing that the number of customers using Azure OpenAI Service solutions to build various AI applications and services has exceeded 1.1. Microsoft also stated that it will continue to drive the transformation of its AI platform.

Tags: AWSAzureGoogle CloudMicrosoftMicrosoftCloud
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Mash Yang

Mash Yang

Founder and editor of mashdigi.com, and student of technology journalism.

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