Business is booming in Microsoft’s cloud.
The tech giant generated $9.6 billion in overall cloud revenue during its fiscal fourth quarter, it announced today (July 19), a 23% year-over-year increase. Its cloud-computing platform, Azure, a crown jewel of the company’s cloud portfolio in its fight again Amazon’s competing business, grew 89% over the same period last year.
The company reported overall revenue of $30.1 billion in its fourth quarter, and $110.4 billion for the year since July 2017, beating Wall Street’s expectations of $29.2 billion for the quarter. Microsoft’s revenue was up 17% over its last fiscal year, leading to its first $100 billion-dollar year.
Analysts are paying particularly close to the company’s commercial cloud services, which CEO Satya Nadella has touted at as the future of the company. Nadella’s cloud strategy means more recurring revenue and opportunities on platforms outside of its Windows operating system, a stark departure from the paths of past CEOs Steve Ballmer and Bill Gates.
Aside from the cloud, Microsoft has seen consistent growth in Dynamics 365, the company’s cloud business tools, as well as Xbox, LinkedIn and Office 365. The company’s “More Personal Computing” category, which consists of Xbox, Bing, Windows, and its hardware business, grew 17% in the last year, posting $10.8 in revenue.