The surge in demand for cloud computing services during the pandemic reflects on Microsoft’s first-quarter results. The rise in video gaming and pc purchases by shoppers and cloud services seem to be pushed upwards Microsoft’s cloud services revenue.
Cloud effect on the results
Office commercial products and cloud services revenue increased 9% driven by Office 365 Commercial revenue growth of 21%. Dynamics products and cloud services revenue increased 19% driven by Dynamics 365 revenue growth of 38%, according to Microsoft’s first-quarter results. In terms of Intelligent Cloud, revenue was $13.0 billion and increased by 20%, while server products and cloud services revenue increased 22% driven by Azure revenue growth of 48%.
Amy Hood, executive vice president and chief financial officer of Microsoft, said,
“Demand for our cloud offerings drove a strong start to the fiscal year with our commercial cloud revenue generating $15.2 billion, up 31% year over year. We continue to invest against the significant opportunity ahead of us to drive long-term growth.”
Revenue in personal computing increased by 6% and reached $11.8 billion. It is possible to say that due to pandemic the speed of digital information will continue to be pushed upwards the cloud.