Microsoft Exam summary
- Microsoft Azure's revenue grew 76% year on year in its most recent quarter, once again growing faster than Amazon AWS.
- Per KeyBanc analysts, Azure revenues are poised to rise from $12.2 billion in FY19 to $26.4 billion in FY21.
- Investors should just ignore the noise and stay focused on Microsoft's long-term outlook.
Microsoft (MSFT) has been receiving a lot of flak ever since it announced its Q2 FY19 results about two weeks ago. Apparently, some market commentators feel that the software giant’s cloud-centric Azure division has slowed down significantly and that it’s a matter of concern for the company and its shareholders. But that’s not necessarily the takeaway here. Azure’s growth momentum is still robust and the division is still on track to become a significant growth driver for the overall company in the coming quarters.
Growth Still Intact
Let me start by saying that Microsoft has done a mighty fine job in growing Azure to a point where it’s being considered as a credible threat to Amazon AWS’ (AMZN) long-standing dominance in the IaaS (Infrastructure-as-a-Service) and PaaS (Platform-as-a-Service) sub-segments within the cloud vertical. Cracking open an industry and making place for a particular product/service is no joke, and is truly worthy of praise. The chart below highlights how Azure’s sales have grown at a blistering (and arguably at an enviable?) pace over the past 10 quarters
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