In 2015, Satya Nadella made a promise that Microsoft was going to build a cloud services business.
It is with $20 billion in annualized revenue to rival Amazon’s heavy hitting cloud services and web services. The original deadline gave the company was the end of the 2018 financial year.
Microsoft reported beating the figure during the first quarter of 2018. It is nearly a year ahead of schedule. The company’s cloud services brought in $609 billion in 2018 in the first quarter. Only the part of Microsoft’s total reported revenue of $24.5 billion. Analysts expected $23.6 billion in revenue during the first quarter.
Microsoft is not disclosing the revenue of cloud business commercially. It is just revealing the records of quarter’s financial years. And Nadella is expecting the more from the company further. It just wants to catch up with the Amazon services.
Cloud services have placed an increasingly important role in what Nadella says is the company’s future. The future is providing intelligent services as an AI first company. A strong cloud business allows the Microsoft to serve as a digital backbone for other companies. And also allows selling server space to run applications and the use of AI algorithms for tasks like facial recognition and speech detection.
Also published on Medium.