Azure’s revenues grew 93% YoY in fiscal 3Q18
Since Microsoft (MSFT) began reporting growth in its Azure business in late 2015, its revenues have never grown less than 90.0% YoY (year-over-year). That trend has continued in fiscal 3Q18, as Azure’s revenues grew 93.0% YoY in fiscal 3Q18, compared to 98.0% YoY growth in fiscal 2Q18. The company doesn’t disclose Azure’s revenues.
Azure is becoming increasingly critical for Microsoft, as AWS is for Amazon (AMZN). Microsoft continues to invest heavily in building colossal data centers around the world. Microsoft reported $3.5 billion in capital expenditures in fiscal 3Q18, with most of it used for data centers. Microsoft’s recent revenue growth has been driven by growth in its Cloud segment.
Microsoft Azure is gaining market share
In general, cloud infrastructure businesses are seeing massive growth, with Amazon and Microsoft reaping the rewards of being the leaders in the segment. According to research by Synergy, Microsoft’s cloud infrastructure services gained the greatest market share in recent quarters among the big players.
Alphabet’s (GOOGL) Google, which is also a player in the cloud sector, reported that its Other segment’s revenues, which includes its Cloud segment, grew 35.0% YoY in 1Q18 to reach ~$4.4 billion.