Microsoft: Windows Azure annual revenues now exceed $1 billion

Microsoft now has another business division that generates over $1 billion in annual revenue. That division is the Windows Azure cloud service business, and that $1 billion number also includes sales of software for third party companies to create their own Windows-based cloud service.

Microsoft revealed the numbers in a new article on Bloomberg today, and added that, according to Microsoft vice-president Takeshi Numoto, subscriptions for Windows Azure have gone up 48 percent in the last six months. James Staten, an analyst at Forrester, claims that Microsoft now is in charge of 20 percent of all cloud-based businesses. Staten predicts that within a year, Microsoft will take up 35 percent of the cloud service market share, as it eats away at its main rival Amazon, which currently controls 71 percent of the market.

As ZDNet points out, Windows Azure is now part of a group of about a dozen or so divisions at Microsoft that bring in $1 billion or more a year in revenue. Those businesses include the Windows, Xbox, Office, and Dynamics sections of the company, among others. The Office 365 division could reach the $1 billion revenue club in the next few months, as it continues to add customers to its own cloud services.

Source: Bloomberg | Image via Microsoft

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"that generates over $1 billion in annual revenue"
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That's great but revenue doesn't necessarily equal profit, what was that that figure? (still in loss-leader stage?)
Don't misconstrue the question though I believe Azure is solid platform that has it's place in the matrix and it will continue to do quite well in the marketplace as it continues to mature and nip away at the competition.

I use azure for a few projects and I enjoy it. Great performance across the board. Now that they price guarantee against Azure, its hard to beat.

Again, is it just me that prefers the logo above (the one in the article) than the one that they're planning on switching to? Heck, at least the colour somewhat matches the name...

My work uses it. Not problems from what I've seen!

In a few years from now, I can see Azure becoming one of Microsoft's main revenue products as they move even deeper into the enterprise market.

djdanster said,
My work uses it. Not problems from what I've seen!

In a few years from now, I can see Azure becoming one of Microsoft&039;s main revenue products as they move even deeper into the enterprise market.

Same here, no problems and they are constantly rolling out improvements. Absolutely destroys AWS or the similar HP offering. However it is a little pricey.

Scroogled said,

I read that Microsoft is dropping prices to match AWS.

Yup, they said they'll price match anything Amazon does which is huge.

Scroogled said,

I read that Microsoft is dropping prices to match AWS.

MS said it a year ago but still it is expensive and in some cases, it is absurdly expensive.

Brony said,

MS said it a year ago but still it is expensive and in some cases, it is absurdly expensive.

Examples, please.

Looking at just the lice prices, they sure look identical to me.

For compute:
1. http://aws.amazon.com/ec2/pricing/
2. http://www.windowsazure.com/en...g/details/virtual-machines/ (note: Microsoft puts Linux and Windows on two separate pages)

And for storage:
1. http://aws.amazon.com/s3/pricing/
2. http://www.windowsazure.com/en-us/pricing/details/storage/

Azure does not offer every service that Amazon offers (e.g., Glacier), but they do offer some services that Amazon does not offer (e.g., ASP.NET web hosting). Wherever they go head-to-head, the pricing seems to be equivalent.