Azure revenue remains a mystery, but cloud services continue to drive Microsoft forward

Microsoft CEO Satya Nadella. (GeekWire Photo / Nat Levy)

One of these days, Microsoft will decide that it needs to break out the amount of revenue it is recording from sales of its Azure cloud computing services. Today was not that day.

For its third fiscal quarter, which ended on March 31st, Microsoft’s Intelligent Cloud division revenue was $9.7 billion, a 22 percent improvement compared to the same quarter last year. That division, which includes sales of Azure, Windows Server, and Enterprise Services, remains the fastest growing part of Microsoft overall.

Azure revenue increased 73 percent, according to Microsoft, but the actual numbers that would allow analysts to make better estimates of its performance against Amazon Web Services remain elusive. Still, there’s no dispute that Azure is the second-most used cloud infrastructure service, ahead of Google, Alibaba, IBM, and a few others.

Another closely-watched cloud metric, commercial cloud revenue, increased 41 percent compared to the previous year to $9.6 billion. Commercial cloud revenue includes Azure and several segments of Microsoft’s Productivity and Business Processes division, such as commercial Office 365 and Dynamics 365.

Microsoft will have a conference call later on Wednesday to discuss its quarter, and we’ll update this post with additional information.

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