Microsoft is witnessing a growing demand for its cloud tech, Azure. In its latest quarterly report, the tech giant beat the Wall Street profit estimates due to the demand for digital solutions. The company’s sales revenue stood at USD 41.7 billion, surpassing the sales revenue estimates of USD 41.03 billion.
Intelligent Cloud revenue, which houses the significant portion of Azure, recorded an uptick with a year-on-year revenue of USD 15.1 bln. Microsoft doesn’t release specific figures pertaining to Azure alone. However, this is not uncommon as Alphabet Inc doesn’t release its Google Cloud sales revenue numbers.
Boosting the revenue further were Productivity and Business Processes, which stood at USD 13.6 bln. The commercial suite of Microsoft Office and cloud services revenue rose 14%. The consumer front of Office and Azure cloud services gained 5%.
Given the 50% growth rate of Azure, Microsoft released cloud tech solutions tailored for various industrial sectors ranging from finance to non-profit in the quarter. The industry clouds solutions for retail and healthcare sectors were also announced.
Microsoft CEO Satya Nadella confirmed the healthcare-specific offerings by stating that the pending acquisition of Nuance Communications will drive the healthcare Azure solution.
As Nadella observed, “(Nuance acquisition) will bring our solutions directly into the physician-patient loop, which is central to healthcare delivery.”
The CEO further commented that Microsoft Azure attracts a diverse range of clients. The cloud is viable for most as it offers various cloud environments where one can deploy their ‘‘centers of excellence around Power Platform – and Power Platform sits at the intersection of, pretty much, Dynamics, Azure, and Teams for example.’’
He further added, “The other thing I would say that we are now seeing is… that industry level differentiation. Whether it’s in retail, whether it’s in healthcare or in financial services, we feel that we now can bring the power of the entire cloud together in a much more strategic way.”
Previously, Transforma Insights, an analyst firm, named the tech giant as one of the prominent leading cloud providers driving digital transformation. Microsoft was rated 52%, while AWS and Google Cloud scored 42% and 25%, respectively.
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