Cloud computing is central to Q2 results for Microsoftas remote work drives growth. Microsoft Azure revenue up 50% due to cloud demand.
Microsoft generated revenue of $ 43.1 billion for the second quarter of fiscal 2021. This represents a 17% year-on-year increase driven by continued business demand for cloud services.
The company reported that revenue from commercial Office products and cloud services increased 11%. Office 365 business revenue increased 21% and Microsoft 365 consumer subscriptions increased from $ 45.3 million to $ 47.5 million.
Microsoft Azure Revenues Up 50% Due to Cloud Demand
Microsoft has reported impressive growth in almost all of its services throughout 2020. At the beginning of the pandemic, the company reported mass adoption figures for Microsoft Teams that exceeded 44 million active users daily.
For the second quarter, cloud computing services took center stage. Dynamics 365 revenue increased 39%, Intelligent Cloud increased 23%. Microsoft’s server business also grew 23%. As a result, its Azure cloud platform grew 50% year-on-year, the company said.
“What we have witnessed over the past year is the dawn of a second wave of digital transformation that spans all companies and all industries”. This was said by Microsoft CEO Satya Nadella.
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“Building your own digital capacity is the new currency that drives the resilience and growth of every organization. Microsoft is driving this change with the largest and most comprehensive cloud platform in the world. “
On the other hand, Microsoft reported a 23% increase in LinkedIn revenue and Windows and Surface business growth of 10% and 3% respectively. However, the biggest increase was Xbox content and services revenue, which increased 40% over the three-month period.
The results show the breadth of services Microsoft offers and how well it has responded to the Covid outbreak. Compared to other cloud providers, such as IBM, the company has seen increases in almost all business segments.
The growth of Azure and cloud services, in particular, suggests that remote work is likely to continue. Even beyond the full implementation of the coronavirus vaccine.
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