Welcome to the Cloud Wars Minute — your daily news and commentary show, hosted by Cloud Wars Founder Bob Evans. Each episode provides insights and perspectives around the “reimagination machine” that is the Cloud.
In this Cloud Wars Minute, Bob Evans reviews Microsoft’s Q2 cloud earnings, which have slowed down compared to the 2022 calendar year. However, Microsoft is the first cloud provider to earn over $100 billion.
00:14 — Microsoft’s Q2 numbers were released on Tuesday — Bob suggests the big story here is that the “juggernaut slows.”
00:34 — Over the last several years, Microsoft has set an extremely high bar for itself. Microsoft’s Q2 growth rates are still high, with more than $100 billion in cloud revenue for the 2022 calendar year. However, its cloud growth rates are dramatically slowing down.
01:09 — Microsoft’s overall cloud business for the fiscal Q2 was up 22%; a year ago, its cloud business was up 32%. Azure revenue growth in Q2 was 31%; a year ago it was 46%. For Dynamics 365, the Q2 growth rate was 21%; a year ago it was 45%.
02:01 — However, Microsoft is the first cloud provider to ever go above $100 billion in cloud revenue, making Microsoft’s cloud business one of the largest technology companies in the world.
02:41 — Bob is curious to hear what Microsoft CEO Satya Nadella has to say in response to this. What does he have up his sleeve to reignite extremely high levels of growth? Bob predicts he will become aggressive in Microsoft’s artificial intelligence (AI) business.