The commercial cloud revenue of Microsoft during the fourth quarter of its fiscal year 2020 (FY20 Q4) which ended on June 30, 2020, increased by 30 percent beating Google and IBM combined.
According to the research data analyzed and published by StockApps.com, Microsoft’s commercial cloud revenue totaled $14.3 billion, Intelligent Cloud revenue was $13.37 billion, marking an increase of 17 percent YoY and surpassed analysts’ expectations of $13.11 billion according to FactSet.
The Intelligent Cloud segment includes products such 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 6 percent while overall revenue increased 13 percent YoY to $38.0 billion.
Meanwhile, the Gaming Revenue Surged By 64 percent as Office 365 Users Hit 258Million.
Also, Azure revenue was key in the performance, 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 3 million organizations using it, including numerous Fortune 500 companies. Dynamic 365 grew 40percent 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 64percent, with Xbox alone reporting 65percent 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.