Microsoft hits $1 trillion after Azure surge
Cloud biz revenue jumps 73% in the last quarter as it grows faster than the competition


Microsoft's cloud service Azure has grown 73% in the first quarter of 2019, helping the company to briefly hit a $1 trillion market cap for the first time.
The tech giant's revenue hit $30.6 billion for the quarter, a 14% increase compared to the same period last year. Operating income hit $10.3 billion, a 25% rise, and net income jumped 19% to $8.8 billion.
Perhaps what's most notable about the quarterly earnings is that server products and cloud services revenue increased 27%, which the company attributed to Azure, it's cloud computing service, which saw revenue growth of 73%.
"Leading organisations of every size in every industry trust the Microsoft cloud," said CEO Satya Nadella. "We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow."
Microsoft saw growth in other services, such as LinkedIn, which had a revenue increase of 27%, and the Surface line of tablets and computers, which grew 21%. But it's larger figures came from Azure, which has been a consistent source of growth of the company at a time when other divisions have struggled.
"Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year-over-year," said Amy Hood, the company's executive VP and CFO. "We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners and targeted strategic investments."
In the nine years since Azure's release, the cloud platform has grown rapidly, despite failing to chip away at the market shares enjoyed by rivals AWS and Google Cloud. However, the overall health of the market has allowed Microsoft to enjoy significant gains regardless.
Get the ITPro daily newsletter
Sign up today and you will receive a free copy of our Future Focus 2025 report - the leading guidance on AI, cybersecurity and other IT challenges as per 700+ senior executives
In 2018, Amazon raked in $ 3 billion, with a large portion of it coming from AWS. The company's cloud division saw year on year profit growth of 45%, which continued a trend of growing by at least 40% each year. In the final quarter of the year, AWS brought in sales of 7.4 billion. The company's first quarter results of 2019 are expected to be released next week.
Bobby Hellard is ITPro's Reviews Editor and has worked on CloudPro and ChannelPro since 2018. In his time at ITPro, Bobby has covered stories for all the major technology companies, such as Apple, Microsoft, Amazon and Facebook, and regularly attends industry-leading events such as AWS Re:Invent and Google Cloud Next.
Bobby mainly covers hardware reviews, but you will also recognize him as the face of many of our video reviews of laptops and smartphones.
-
The IT industry’s shift to circular, low-carbon solutions
Maximize your hardware investment and reach your sustainability goals with HP’s Renew Solutions
-
Lenovo ThinkPad X9 14 Aura Edition review
Reviews This thin and light ultraportable will draw you in with its vibrant screen – but it isn't as powerful as some of its competitors
-
Microsoft is ending support for the Remote Desktop app – here are three alternatives you can try instead
News Microsoft has announced plans to end support for its Remote Desktop application in just over two months.
-
Microsoft's huge AI spending has investors worried – now the company is changing its financial reporting to highlight successes
News The move comes as investors want more evidence that Microsoft’s AI investment will pay off
-
Could Python in Excel be a boon for cryptocurrency miners?
Opinion Free Python compute resource on offer via Microsoft 365 beta preview – what could possibly go wrong?
-
Microsoft defends “negligent” security approach that prolonged vulnerability fix for five months
News The tech giant has refuted claims that its practices have left customers “in the dark”
-
Microsoft Build 2023: Microsoft Fabric and oodles of Azure AI integrations announced
News Microsoft Fabric aims to greatly improve developer productivity and simplify real-time analytics
-
Five ways to reduce Kubernetes costs
Tutorials With cutting expenditure a business imperative, there are several ways enterprises can reduce Kubernetes costs
-
Azure spending notifications for customers unavailable until March, Microsoft warns
News Customers have been advised to manually monitor Azure usage and costs until a fix is implemented
-
Microsoft cloud revenue still sky-high as device sales continue to slide
News The company's latest earnings call revealed that Azure cloud products delivered better-than-expected results while numbers in other divisions fell substantially