In spite of slowing growth, Microsoft has been flexing its cloud muscles


When Microsoft reported its FY19, Q4 earnings final week, the numbers had been principally constructive, however as we identified, Azure earnings growth has stalled. Productiveness and enterprise, which incorporates Workplace 365, has additionally principally flattened out. However slowing progress just isn’t at all times as unhealthy as it could appear. The truth is, it’s an inevitability that after you begin to attain Microsoft’s market maturity, it will get more durable to take care of giant progress numbers.

That mentioned, AWS launched the first cloud infrastructure service, Amazon Elastic Compute Cloud in August, 2006. Microsoft got here a lot later to the cloud, launching Azure in February, 2010, however so had been different established firms in Microsoft’s market share rearview. What did it do in a different way to realize this success that the businesses chasing it — Google, IBM and Oracle — didn’t do? It’s a key query.

Let’s have a look at some numbers

For starters, let’s have a look at probably the most numbers for Productiveness & Enterprise Processes this 12 months. This class consists of all of its industrial and shopper SaaS merchandise together with Workplace 365 industrial and shopper, Dynamics 365, LinkedIn and others. The proportion progress began FY19 at 19% however ended at 14%

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If you have a look at simply Workplace365 industrial earnings progress, it began at 36% and dropped all the way down to 31% by This fall.


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