Sponsored By

Microsoft Crowds the Cloud With AI, Expansion FocusMicrosoft Crowds the Cloud With AI, Expansion Focus

Microsoft's Intelligent Cloud group, which includes server, enterprise products and services, reported that its revenues were up 17% to $7.9 billion.

Phil Harvey

April 26, 2018

2 Min Read
Microsoft Crowds the Cloud With AI, Expansion Focus

Microsoft launched its Windows Server 2003 operating system 15 years ago this week as the company aimed to help businesses host and run web applications more easily.

Three years ago, it completed its acquisition of Nokia's Devices and Services business. But you didn't hear much about mobile devices or website hosting on Thursday's earnings call. Microsoft, as much as anything else, is a cloud computing company now and a service provider in its own right.

Microsoft reported third quarter earnings of $0.95 a share on revenues of $26.82 billion, beating Wall Street's estimates by $0.10 a share and $1.05 billion, respectively. The company's revenues grew by $3.6 billion (16%) across all segments. (See Cloud Growth Propels Microsoft to Revenue Gains).

But its cloud computing numbers stood out yet again as the company reported Azure revenue growth of 93%. The company's Intelligent Cloud group, which includes server, and enterprise products and services, reported revenues that were up 17% to $7.9 billion.

During the quarter, Microsoft's commercial cloud revenue was $6 billion, up 58% from the year-ago quarter. In 2017, Microsoft had $15 billion in commercial cloud revenue for the entire year; the division brought in just over 28% of the company's revenues that year.

Referring to the company's investments in AI and cloud, Satya Nadella, Microsoft's CEO, said Microsoft has "made the right investments and they're having an impact, increasing our overall share in an expanding market."

He added that more infrastructure and a sharp security focus was going to give Microsoft an edge in cloud services.

"Our recent data center expansion, including the United Arab Emirates and Switzerland, brings our total number of regions to 50, more than any other cloud provider. The additional availability zones provides the most comprehensive resiliency in the industry," Nadella said.

— Phil Harvey, US News Editor, Light Reading

About the Author(s)

Phil Harvey

Editor-in-Chief, Light Reading

Phil Harvey has been a Light Reading writer and editor for more than 18 years combined. He began his second tour as the site's chief editor in April 2020.

His interest in speed and scale means he often covers optical networking and the foundational technologies powering the modern Internet.

Harvey covered networking, Internet infrastructure and dot-com mania in the late 90s for Silicon Valley magazines like UPSIDE and Red Herring before joining Light Reading (for the first time) in late 2000.

After moving to the Republic of Texas, Harvey spent eight years as a contributing tech writer for D CEO magazine, producing columns about tech advances in everything from supercomputing to cellphone recycling.

Harvey is an avid photographer and camera collector – if compulsive shopping and "collecting" are the same. His work can be seen on Flickr, Instagram (sometimes) or by opening one of the dusty shoe boxes in his attic.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like