Trending: Amazon narrows HQ2 search to 20 cities, moving to next phase in contest for $5B economic prize

azureMicrosoft’s Windows Azure is the latest product from the company to reach $1 billion in sales, suggesting that Microsoft is becoming a more formidable competitor to in the world of cloud computing, according to a Bloomberg News report this afternoon.

It becomes the seventh billion-dollar business within Microsoft’s Server & Tools Division alone, according to ZDNet.

Although some portion of the revenue has shifted from Microsoft’s traditional server business, the revenue milestone is no mean feat, given the aggressive price-cutting that Amazon brings to the industry.

The announcement follows Azure’s expansion last year into the realm of raw “infrastructure as a service,” which appeals to many startups. Microsoft had focused largely on a higher-level “platform as a service,” before expanding into infrastructure as a service last year. Satya Nadella, president of the Server & Tools Divison, addressed that topic in a discussion with reporters in March.

For context, Bloomberg cites a Sanford C. Bernstein & Co analyst who says Amazon Web Services’ annual revenues could reach $20 billion by 2020, up from from $1.8 billion last year.

Like what you're reading? Subscribe to GeekWire's free newsletters to catch every headline


Job Listings on GeekWork

IT AssociateIndivisible Project
Crowdsourcing EngineerThe Allen Institute for Artificial Intelligence (AI2)
Find more jobs on GeekWork. Employers, post a job here.