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Microsoft wants $20 billion from cloud computing

Staff writer |
Microsoft plans to achieve $20 billion in annual revenue from its cloud computing business in fiscal 2018. That would triple its cloud revenues over a period of three years.

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Microsoft also said it plans to have a billion active Windows 10 devices in fiscal 2018.

Microsoft CEO Satya Nadella said at a financial analyst briefing during the company's Build Developer conference in San Francisco, "So we have an ambition to get to $20 billion of annualized run rate in the cloud in FY18. So that's our target, and that's what we're going to pursue with the strategy I just laid out. And this, by the way, is about really the combination of what we today have in Office 365, Dynamics, EMS, Azure."

Microsoft's cloud business includes the Azure platform as well as cloud versions of Office 365 and Dynamics CRM.

Nadella, who took over Microsoft's helm in February last year, has been focusing on cloud-based business services. At the same time, he wants a slimmer and simpler Microsoft.

Last Thursday, Microsoft said its third-quarter profit declined 12 percent from last year, as higher costs and expenses more than offset a 6 percent increase in revenue. However, it added that its commercial cloud revenue for the quarter surged 106 percent from a year ago, driven by Office 365, Azure and Dynamics CRM.

Microsoft noted that its commercial cloud revenue is now on an annualized run rate of $6.3 billion. Annualized run rate is quarterly revenue presented on an annualized basis.

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