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Office 365 Powers Microsoft to Higher Cloud Revenues

Microsoft must have been happy with the $18.9 billion run rate they achieved for commercial cloud products in fiscal 2017. But what segment makes the majority of this revenue? Microsoft is not saying, but given the number of Office 365 users, it seems like it is Office 365.

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Office 365 Hits 100 Million Users. On Course for 120 Million This Year

Microsoft’s Q3 FY17 results tell us that Office 365 now has over 100 million monthly active users. That’s great, but the really interesting thing is how many on-premises seats remain to move to the cloud.

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Microsoft Adds Another Billion to Commercial Cloud Revenues

Microsoft’s FY17 Q2 results posted on January 26 boasted a 49% year-over-year growth in commercial Office 365 revenues, contributing to an annualized run rate for commercial cloud products that now “exceeds” $14 billion. The number of cloud users has grown again, underlying the continuing movement of work to the Office 365 and Azure.

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