Microsoft’s commercial cloud revenue up by 30 percent

Software king of the world Microsoft appears to be doing better than Amazon and Google in the cloud stakes.

According to the research data analysed and published by, during the fourth quarter of its fiscal year 2020 which ended on June 30, 2020, Microsoft had an increase of 30 percent in commercial cloud revenue.

While commercial cloud revenue totalled $14.3 billion, Intelligent Cloud revenue was $13.37 billion. This marked an increase of 17 percent year on year and surpassed analysts’ expectations of $13.11 billion according to FactSet. The Intelligent Cloud segment includes such products as Azure, Windows Server and GitHub among others. More Personal Computing, which includes Xbox and Surface, was up 14 percent. Productivity and Business Processes, whose products include Office and Dynamics, was up six per cent. Overall revenue increased 13 percent year on year to $38.0 billion.

Azure revenue was key, as it grew 47 percent. However, this was a drop from 59 percent in the previous quarter. In fact, in a span of two years, it had dropped significantly from a growth rate of 98 percent in Q3 2018.

Though it took the lead in enterprise cloud revenue, it is not the only remarkable performer in the cloud portfolio. GitHub currently has over three million organisations using it, including numerous Fortune 500 companies. Dynamic 365 grew 40 percent during the quarter to report revenue approaching $2 billion. As a whole, Dynamics contributed revenue surpassing $3 billion.

Courtesy of stay-at-home orders, gaming revenue increased by 64 percent, with Xbox alone reporting 65 percent growth. Surface revenue increased from $1.34 billion in Q3 to $1.72 billion in Q4 2020. Office 365 business users increased from 200 million to 258 million.

As a result of its Q4 performance, Microsoft is now the leader in the enterprise cloud business. Amazon AWS sits in second place with $10.8 billion in revenue while IBM is third with $6.3 billion.  Google is fourth with $3.0 billion.