Azure was the star of Microsoft’s cloud division during its third fiscal quarter, with revenue growing 93 percent as part of $6.8 billion in Intelligent Cloud group revenue during the quarter.
Microsoft doesn’t break out actual revenue for Azure, but the Intelligent Cloud segment consists of Windows Server, SQL Server, and other cloud-related products and services. The $6.8 billion in revenue was an increase of 11 percent over the previous year’s third fiscal quarter, and operating income was was $2.2 billion, up a fraction from the year-ago period.
The company’s commercial cloud run rate reached $15.2 billion — an annualized measure that includes Office 365 commercial, Azure, Dynamics 365, and other cloud initiatives from the company — up from the $14 billion rate quoted last quarter. The company once again made its cloud revenue the highlight of its overall earnings release: Microsoft has actually used the same nearly identical headline (“Microsoft Cloud strength highlights X quarter results”) six quarters in a row. The company has promised to get to $20 billion in yearly cloud revenue by the end of its 2018 fiscal year.
The company will hold a conference call later today for financial analysts, and I’ll update this post with additional cloud-related information from that call once it becomes available.
(Editor’s note: This post was updated to correct the year in which Microsoft has said it will reach a $20 billion revenue run rate in its commercial cloud business.)