Leaked Microsoft Presentation Sheds Light on Azure Revenue – Business Insider

Leaked Microsoft Presentation Sheds Light on Azure Revenue – Business Insider

Leaked Microsoft Presentation Sheds Light on Azure Revenue – Business Insider 0 0 Alan Dickson

Microsoft is famously tight-lipped about how much revenue its Azure cloud generates — so much so that even former CEO Steve Ballmer once called for more transparency.
Instead of reporting Azure revenue directly, Microsoft has opted to give investors different views into its growth: When it comes time to report earnings, Azure is grouped under the larger umbrella of “Intelligent Cloud,” which also includes products like the Windows Server line and even consulting services. The only specific figure Microsoft usually provides is Azure’s revenue growth rate — without disclosing any actual dollar amounts.
The Intelligent Cloud unit booked $75.2 billion in Microsoft’s previous fiscal year. The broadness of that unit, however, makes it difficult to compare how Azure is doing against competitors like the market-leading Amazon Web Services, which reported $62.2 billion in revenue in 2021.
An internal Microsoft presentation viewed by Insider gives a rare look into what Microsoft considers a key internal metric for its customers’ cloud spending and how much the spending has grown in the past five years. Microsoft declined to comment or confirm the numbers.
A chart in the presentation, labeled “MSUS Ent Azure Mix and Growth,” lists the following figures for “ACR,” or Azure consumed revenue — the actual value of Azure services consumed by a customer, whether they paid the full retail rate or a discounted rate:
It’s unclear what is meant by “MSUS Ent,” but MSUS is what Microsoft internally calls its US subsidiary, responsible for sales and support for the company’s more than 11,000 public and private customers in the country. MSUS has a unit called Enterprise Commercial.
Microsoft doesn’t publicly disclose ACR in financial reports, but it’s such an important metric within the company that Microsoft has in recent years started including it in performance reviews for some employees, a person familiar with the changes said.
Before these figures, the only other glimpse into Microsoft’s cloud performance came from a metric that it calls “cloud revenue,” which bunches together Azure with its Office 365 productivity suite for businesses, a portion of LinkedIn revenue, and its Salesforce competitor, Dynamics 365. Microsoft reported $91.2 billion in “cloud” revenue for its 2022 fiscal year that concluded in June but didn’t specify how much Azure contributed to that figure.
Are you a Microsoft employee or do you have insight to share? Contact the reporter via the encrypted-messaging app Signal (+1-425-344-8242) or email (astewart@insider.com).
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