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Microsoft 365 contributed $20 billion in billed revenues to Microsoft’s FY’20 total, sources say. And that number, fueled by accelerating E5 SKU growth, is only likely to grow faster.<\/p>\n <\/p>\n Credit: Microsoft<\/span><\/figcaption><\/figure>\n Microsoft trumpeted last week that it had surpassed $50 billion in “commercial cloud” revenues in FY’20<\/a>. As usual, officials didn’t share publicly during the disclosure of its fiscal results how much its various services, including Azure, contributed to that total. But officials did provide a bit more of a breakout privately to some employees and partners.<\/p>\n Among a few of the additional data points Microsoft Chief Financial Officer Amy Hood discussed during a session at Microsoft’s internal Ready conference, according to my contacts, who asked not to be named:<\/p>\n Microsoft created its commercial cloud metric in 2015. At that time, officials said they expected the company to hit a $20 billion annual run rate for commercial cloud by 2018<\/a>. Microsoft actually surpassed the $20 billion annual run rate for commercial cloud in October 2017.<\/p>\n The primary services that are part of Microsoft’s commercial cloud<\/a> are Azure; Office 365 business services (Exchange Online, SharePoint Online, Skype for Business Online, Microsoft Teams); Dynamics 365 cloud services; “commercial” LinkedIn services and its Enterprise Mobility + Security Suite (EMS). On-premises products are not included in the total.<\/p>\n I’ve asked Microsoft if all Microsoft 365 revenues currently are counted as part of the commercial cloud. No word back so far.<\/p>\n Microsoft 365 E5 costs $57 per user per month<\/a> for an annual commitment. Microsoft 365 E3 goes for $32 per user per month, and Microsoft 365 E3 (formerly known as F1, the firstline worker SKU) goes for $10 per user per month. The E5 SKU includes meetings and voice, analytics, identity and management, threat protection, and other features not in the other two main Microsoft 365 SKUs.<\/p>\n Microsoft is expected to make its Project Cortex<\/a> knowledge management service a premium feature available only to E5 subscribers<\/a> once the service launches this fall. Microsoft was hoping to make Cortex generally available early this summer, but the launch is delayed.<\/p>\n Tags:<\/b> Mary Jo Foley<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"![\"microsoft365growing.jpg\"](\"https:\/\/zdnet2.cbsistatic.com\/hub\/i\/2020\/07\/28\/23d0751f-6e9a-4cee-a52b-e491be13e4d3\/microsoft365growing.jpg\")
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See Campaign: <\/strong>https:\/\/www.zdnet.com\/article\/microsoft-q4-earnings-softening-smallmid-size-business-demand-has-an-impact\/<\/a>
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Mary Jo Foley<\/p>\n
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Microsoft 365 contributed $20 billion in billed revenues to Microsoft’s FY’20 total, sources say. And that number, fueled by accelerating E5 SKU growth, is only likely to grow faster. Credit: Microsoft Microsoft trumpeted last week that it had surpassed $50 billion in “commercial cloud” revenues in FY’20. As usual, officials didn’t share publicly during the … Continue reading Microsoft 365 is big and getting bigger fast<\/span><\/a> Continue Reading