Microsoft Corporation (NASDAQ:MSFT) Not Ready to Disclose Its Cloud Business Worth


Amazon came out and cleared the air about its cloud business’s worth, but Microsoft Corporation (NASDAQ:MSFT) is remaining firm, opting to report earnings of this segment as part of all its Commercial cloud businesses. There is no doubt that Amazon.com, Inc. (NASDAQ:AMZN) is the biggest player in the cloud business, but Microsoft is not lagging far behind as both continue to rival each other for market share in the fast-growing business.

The only admission that the company made at the recent quarterly filing was that its cloud business was growing fast, but it held back key numbers as investors continue to guess its worth. There is hope that the Redmond-based company will heed to mounting pressure in the near future and disclose the numbers, Amazon having already done the same.

Azure is Microsoft Corporation (NASDAQ:MSFT)’s cloud business, similar to Amazon Web Service, which generated $1.57 billion in revenue in the first quarter as the company affirms it could generate up to $6.3 billion by year end. Microsoft reports Azure’s revenue as part of its other cloud businesses, made of Office 365 and Dynamics CRM Online.

Microsoft Corporation (NASDAQ:MSFT)’s executives, just like Amazon’s in the past, have refused to budge to disclose how much Azure contributes to the company’s total revenue. The only tangible evidence that the unit indeed does generate some revenue was a report appearing in Bloomberg in 2013 that revealed $1 billion worth of revenues made of services provided by partner companies that offer cloud services which run on Windows.

Microsoft CEO, Satya Nadella, affirms that the company’s commercial cloud business is enjoying a triple digit growth rate, having posted a run rate of $5.5 billion in the second quarter of 2015. Based on current results and the progress of the business, Microsoft Corporation (NASDAQ:MSFT) believes it will generate $6.3 billion in revenues this quarter. However, the software giant is remaining firm on the actual numbers of Azure, Office 365 and CR online.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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