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Comment by belltaco | Hacker News Reader

This has become a meme and urban legend at this point, but Office 365 revenue isn't included in Azure's revenue. G Suite is included in GCP revenue though.

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It looks like this has changed [0]. Microsoft now places Office365 under “ Productivity and Business Processes”, which earned 11.8b in FY20 Q2.

Azure is under “Intelligent Cloud”, which earned $11.9b this last quarter.

0: https://www.microsoft.com/en-us/investor/earnings/FY-2020-Q2...

Thanks for bringing this up.

Based on that last sentence, Azure has a 12*4=48B$ annual run rate.

AWS has $40B annual run rate (https://www.zdnet.com/article/aws-brings-in-nearly-10b-in-sa...)

Something is not quite adding up.

See below thread, but Azure + Enterprise services + server products are reported as "Intelligent cloud". It's intelligent cloud that has the $48bn run rate. So it's not a like-for-like comparison with AWS even though it doesn't include Office365.

Follow up question: It would be interesting to see the market share and revenues excluding the use from the own company or different orgs. E.g.: AWS without the Amazon Website use, Azure without the Office use, etc.

Is there any public information about it available?

On the flip side, if Google started 'buying' capacity from GCP for their search, ad, and other infrastructure, they would be the largest cloud vendor tomorrow by most measurements.

TechCrunch says differently:

>Turning to Microsoft, it reported a combined cloud revenue, which includes SaaS (Office 365, Dynamics, etc.) and cloud computing (Azure), of $12.5 billion for the quarter.

Could you provide a source? I can certainly believe TC is wrong, but contradictory information isn't great.

From https://www.microsoft.com/en-us/investor/earnings/FY-2020-Q2...

"Revenue in Productivity and Business Processes was $11.8 billion and increased 17% (up 19% in constant currency), with the following business highlights:

· Office Commercial products and cloud services revenue increased 16% (up 18% in constant currency) driven by Office 365 Commercial revenue growth of 27% (up 30% in constant currency)

· Office Consumer products and cloud services revenue increased 19% (up 20% in constant currency) with continued growth in Office 365 Consumer subscribers to 37.2 million

· LinkedIn revenue increased 24% (up 26% in constant currency)

· Dynamics products and cloud services revenue increased 12% (up 15% in constant currency) driven by Dynamics 365 revenue growth of 42% (up 45% in constant currency)

Revenue in Intelligent Cloud was $11.9 billion and increased 27% (up 28% in constant currency), with the following business highlights:

· Server products and cloud services revenue increased 30% (up 32% in constant currency) driven by Azure revenue growth of 62% (up 64% in constant currency)"

So Office 365 falls under category "Productivity and Business Processes", while Azure as well as 'server products' and 'enterprise services' fall under "Intelligent Cloud".

Their third category is "Personal Computing" which was $13.2 billion and includes Windows, Surface, Search / advertising (I guess Bing), Xbox.

Thanks! Seems like TC needs to get up to date :)

Edit: Does this include SPLA licensing? Trying to figure out what all is in there besides Azure.

Azure cannot be at 12B per quarter, it'd be larger than AWS. I still don't understand the numbers. :)

It's not, if you scroll up there's a fellow who determined it's closer to 2.5b a quarter for Azure.

"Azure" the broad marketing catch-all is 12B per quarter.

Azure the PaaS and associated cloud offerings are much less.

The root of the problem is that MS decided to expand what "Azure" is for marketing and financial reporting purposes beyond its PaaS origins.

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