Microsoft’s Windows 10 operating system is now present in over 350 million devices worldwide (mobile, PC, etc), since launch of Windows 10 in July 2015, the company said during its Q4FY16 financial results. While its CEO Satya Nadella added that Windows 10 apparently witnessed the fastest adoption rate among any prior Windows release. A large portion of Microsoft’s enterprise customers—over 96% of them— have been piloting Windows 10 since its launch.
The company also hinted more upcoming Windows based devices launches that will have “new hardware designs from its partners.” Microsoft also plans to grow its monetization opportunities across both enterprise and general consumer spaces. “In the enterprise, customers will continue to value our unparalleled management, security and servicing capabilities. And for consumers, Windows 10 creates monetization opportunities with Store, search and gaming,” added Nadella during a conference call with analysts.
Some highlights from the con call:
On search business and Cortona: More than 40% of the company’s search business (Bing) revenue in June came from Windows 10 devices, as Bing comes pre-installed in Windows. According to Nadella, Bing PC query share in the United States stood at 22% this quarter. In addition, the Cortana search box (on both PC and mobile) registered over 100 million monthly active users, with 8 billion questions asked till date.
On Microsoft Office: Microsoft Office 365, a subscription based Office software kit added nearly 10 million subscribers in FY16. In total, there are more than 23 million non-enterprise Office 365 subscribers till date. However the company did not reveal the exact numbers of enterprise customers subscribing for Office 365, but said that it grew by 74% year-on-year. “We see momentum in small and medium businesses with a growing number of partners selling Office 365. Now after nearly 90,000 (enterprise subscriptions), a 25% increase year over year. We continue to grab share and adding over 50,000 customers each month for 28 consecutive months,” Nadella said during the analyst call. From both enterprise and general consumer segment, Microsoft added more than 50 million monthly active subscriptions from iOS and Android during FY16.
On Azure cloud platform: Revenue from Microsoft’s cloud business, Azure increased by over 100% year over year, during Q4FY16. In the previous quarter (Q3FY16), revenues from Azure grew by 120% y-o-y. The Azure cloud platform is now available in 140 countries with over 20 datacenter regions. Microsoft is also planning to expand its datacenter presence to India and Canada, We also have major new releases planned across Windows Server and SQL Server in the coming year…” added Nadella.
On gaming business: Xbox console volumes grew to over 12 million in this financial year (FY16) alone. Xbox Live, Microsoft’s multiplayer gaming platform had more than 49 million monthly active users, up 33% year-over-year. “Our Xbox Platform competes with console platforms from Sony and Nintendo, both of which have a large, established base of customers,” added Nadella. To compete with them, Microsoft and continue to launch “strong exclusive content from our own game franchises as well as other digital content offerings.” Microsoft has already announced multiple exclusive games for both Xbox One and Windows 10 PCs in June.
-Microsoft reported overall non-GAAP revenues of $22.6 billion during Q4FY16, which is marginally up by 2% from $22.1 billion in the same quarter last year (Q4FY15). However, overall revenues were up 10% when compared to the previous quarter.
-Revenues from productivity and businesses services stood at $7 billion during this quarter, which is up 5% y-o-y. Office commercial products and cloud services revenue grew 5% y-o-y, driven by Office 365 commercial revenue.
– Revenue from Intelligent Cloud category grew 7% y-o-y to $6.7 billion in this quarter, driven by Azure cloud services. Server products and cloud services revenue increased 5% y-o-y.
– Revenue from Personal Computing declined 4% y-o-y to $8.9 billion in Q4FY16, which was driven by Windows OEM products. The company posted $3.6 billion in revenues for its Windows Surface category of devices for the entire fiscal year of 2015-16, which is the highest yearly earnings since its launch in 2013.