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How are those cloud businesses doing?

Microsoft’s filing with the SEC has analyzed by GeekWire, and there’s financial results here to dive into. 

Here’s some highlights.

  • Microsoft’s back-end server products and cloud services are booming. Revenue grew by nearly 27% to $41.4 billion in the product category of Server and Cloud Services in the fiscal year ended June 30.
  • Office and Cloud Services revenue was the second-fastest growing category, at 11%, reaching $35.3 billion in revenue for the year. Windows grew by 9% to $22.3 billion.

Google has released some research around their Google Cloud – and specifically, how their partners are performing.    From the press release:

  • “On average, partners are growing their Google Cloud businesses at a rate of 35% year-over-year, with a significant group of partners—one in five—growing even faster, at 75%-plus year-over-year.“
  • Globally, for every $1 of Google Cloud technology sold in 2020, partners will generate $5.32 through their own offerings, services, and IP. IDC expects this number to grow, reaching $7.54 by 2025. 

Why do we care?

There’s a lovely graph in the article.    You can see clearly Server and Cloud services doing that hockey stick growth, and Office and Cloud services having a healthy growth pattern.

(Also, don’t count Windows out.  It’s a solid business.  I also want to note, but not dive into, solid growth of LinkedIn revenue and Xbox revenue).

Now, what it means –  that matching of revenue in cloud services.      More than $5 per single dollar with google directly, and it’s likely the numbers are similar with Microsoft, particularly knowing the history of channel engagements previously.