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Microsoft FY20 Q4 Commercial Cloud Revenue Up By 30%, Bigger than Google and IBM Combined

  • Monday, September 14, 2020, 4:08 pm
  • ACROFAN=Seunghee Shin
  • seunghee.shin@acrofan.com
 According to the research data analyzed and published by StockApps.com, during the fourth quarter of its fiscal year 2020 (FY20 Q4) which ended on June 30, 2020, Microsoft had an increase of 30% in commercial cloud revenue.

While commercial cloud revenue totaled $14.3 billion, Intelligent Cloud revenue was $13.37 billion. This marked an increase of 17% YoY 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%. Productivity and Business Processes, whose products include Office and Dynamics, was up 6%. Overall revenue increased 13% YoY to $38.0 billion.

Gaming Revenue Surged By 64% as Office 365 Users Hit 258M


Azure revenue was key in the performance, as it grew 47%. However, this was a drop from 59% in the previous quarter. In fact, in a span of two years, it had dropped significantly from a growth rate of 98% 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 40% 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%, with Xbox alone reporting 65% 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.