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Azure Cloud revenue helps Microsoft to cross $1T market capitalization again

Microsoft

Microsoft has unveiled the results of its fourth quarter FY19, showing strong growth across all the products. The company reported a revenue of $33.7 billion, a growth of 12% year over year.

Wall Street had expected Microsoft to report a revenue of $32.77 billion with earnings of $1.21 per share. The tech giant has beaten the expectations by earning $1.37 per share.

Yet again, the key factor to company’s continued growth is the cloud business, which has been the focus since the time Satya Nadella took over as CEO. Revenue in Intelligent Cloud, which includes server products, cloud services, and enterprise services, was $11.4 billion and increased 19%. The company said that the growth is driven by Azure revenue which grew 64% YoY.

“It was a record fiscal year for Microsoft, a result of our deep partnerships with leading companies in every industry,” said Satya Nadella, chief executive officer of Microsoft.

“Every day we work alongside our customers to help them build their own digital capability – innovating with them, creating new businesses with them, and earning their trust. This commitment to our customers’ success is resulting in larger, multi-year commercial cloud agreements and growing momentum across every layer of our technology stack,” he added.

Azure revenue has increased due to the high growth of the cloud market. This comes as a result of companies rapidly shifting their workloads to the public cloud vendors, such as Microsoft, Google, Amazon, IBM, Alibaba and Oracle. This move is a great opportunity ahead for Microsoft.

“Q4 commercial cloud revenue increased 39% year-over-year to $11.0 billion, driving our strongest commercial quarter ever,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

This growth has also helped Microsoft to surpass the $1 trillion market capitalization milestone for the second time.

Microsoft also saw a revenue growth of 5% which drove after the company announced the end of support for the technology servers of 2008 – SQL Server 2008 and Windows Server 2008, hybrid solutions, and GitHub.

Besides this, Microsoft’s overall revenue for the fourth quarter has increased 12% and the operating income has increased by 20%.

ALSO READ: Azure Data Share to make sharing of big data easy and safe across organizations

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