news & Things

Microsoft’s Cloud Offering Continues To Grow YoY

31st Jan 2022

Organisations may be returning to the office, but cloud computing remains a HUGE area of growth.

Microsoft saw a big increase in revenue last quarter, thanks to their cloud services, Windows and Office, however, gaming hardware growth was lower.

Microsoft was up 21% year-on-year (YoY) and had a profit of $18.8 billion in the quarter ended 31st December (Q4 ’22), which completely exceeded expectations due to significant growth in cloud

Revenue for the quarter also exceeded analysts’ expectations, at $51.7 billion, up 20 per cent YoY.

Its Azure cloud infrastructure service had a slight stall with a 46 per cent growth, but the previous quarter saw a 48% growth – but over cloud revenue 32 per cent YoY to $22.1 billion.

Like many organisations, Microsoft has benefitted from the pandemic as governments, organisations and other institutions across the globe have increased their use of cloud computing and technologies in order to continue on with their work.

Numerous organisations are now encouraging a return to the office and resumption of normalcy; however, this has been delayed by the Omicron variant.


“Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life,”

“As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture and sense of purpose.”

Satya Nadella, Microsoft CEO


Their More Personal Computing segment, comprised of Windows, devices, gaming and advertising, garnered $17.5 billion in revenue.

The Surface laptop drove an 8% increase in in Surface computer sales, and there was a 25% increase in Windows licensing revenue from PC makers.

The likes of Office, Dynamics and LinkedIn, which help make up the Productivity and Business Processes segment, generated $15.9 billion in revenue, up 19% from the same time the previous year.

Overall gaming revenue saw an 8% increase, including a 4% rise in revenue for gaming hardware as a result of continued demand for latest Xbox Series X and Series S consoles.

Speaking of gaming, it’s been revealed that the tech-giant will be acquiring games publisher Activision Blizzard for $68.7 billion.

The acquisition will close in fiscal year 2023, and will mean Microsoft publish titles like Candy Crush, Warcraft, Call of Duty, Diablo and Overwatch.

The firm expects sales of $48.5 billion to $49.3 billion in the fiscal third quarter (ending March), compared to analyst expectations of $48.1 billion, according to Amy Hood, Microsoft’s finance chief.

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