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Cloud drives Microsoft Q1 revenue, record usage on Teams and LinkedIn

Microsoft’s 12% YoY Q1 revenue growth drove by people having to stay indoors: remote work, more gaming, and remote conversation. A major contributing factor this quarter (July-September) was growth in commercial cloud, which crossed $15 billion in revenue, up by a third year-on-year. “The next decade of economic performance for every business will be defined by the speed of their digital transformation,” CEO Satya Nadella declared.  Cloud: Azure grows 48%, Intelligent Cloud segment sees highest growth Azure revenue grew at 48% YoY, driven by growth in consumption-based business. “This quarter, we saw better than expected growth in our per-user enterprise mobility business as the installed base increased 27% to 152 million seats,” the company said.  The broader category that Azure sits inside is Intelligent Cloud reported $13 billion in revenue, up 20% year-on-year. This segment includes GitHub, Enterprises Services, SQL and Windows Server. It was also the highest growth segment for the company, with the others being Productivity and Business Processes (includes LinkedIn and Office365) and More Personal Computing (includes Windows and Xbox). The former grew 11% YoY and the latter grew 6% YoY.   The way I think about the computing landscape going forward is if you sort of said at the highest of levels today as a percentage of GDP, tech spend is 5%. We think it will double in the next 10 years. And if anything, this pandemic perhaps has accelerated that doubling. And in that context, what’s the large -- the most secular need, it’s the need…

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