Cloud Continues to Increase Microsoft Revenue

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Microsoft's financial report for Q1 2018 Microsoft began its fiscal year in July showing that the trend in the previous quarter is still continuing. They reported revenues of US $ 24.5 billion, up 12 percent from the same period last year. One interesting thing is Surface sales are up for the first time in a long time. After declining last quarter, revenue from Surface rose 12 percent compared with Q1 2017. Possible, this increase thanks to the emergence of Surface Laptop and Surface Pro.

Cloud continues to be a major revenue source for Microsoft. This quarter, revenues from cloud reached US $ 20 billion. Azure revenues increased 90 percent from a year ago.

In addition, revenue from their office products also increased. Revenue from Office 365 commercially has increased 42 percent with the consumer version of Office 365 now has 28 million subscribers.


Although revenue from both sources is up, revenue from the computer market tends to stagnant. Revenue from Windows OEMs rose just 4 percent while commercial Windows and cloud services rose 7 percent.

Revenues from the gaming division did not rise greatly, just up 1 percent. That is, not many people buy a console made by Microsoft, Xbox. However, Microsoft said revenue from Xbox software rose 21 percent.


That shows, Xbox users are actively spending money on buying games. Growth is driven by the distribution of digital games and also the strengthening of game sales. Unfortunately, it is unknown what games are the most popular.

Microsoft CEO Satya Nadella said that growth in the Xbox service showed early potential as a source of additional revenue.

"Our report reflects the growth of innovation and increased usage across our business, along with customer decisions to continue using Microsoft to help them transform," Nadella said.
 
 

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