Azure Hits $100 Billion Mark, But Microsoft Still Keeps Cloud Numbers Under Wraps

Microsoft's Azure cloud business has reached a major milestone, according to CEO Satya Nadella. During an earnings call, he revealed that Azure's annual revenue had surpassed $100 billion for the first time.

This rare disclosure comes as a surprise, given Microsoft's history of keeping its cloud numbers under wraps. The company typically only reports on its Intelligent Cloud segment, which includes both Azure and legacy software products.

However, analysts are still left in the dark about the true margins, costs, and capital intensity behind Azure's growth. This is because Microsoft blends Azure with other businesses within the Intelligent Cloud segment, making it impossible to separate its actual performance from the rest of the company.

The lack of transparency has sparked criticism among investors, who point out that Amazon provides more detailed breakdowns of its cloud business, Amazon Web Services. This has led some to question whether Microsoft's financial reporting is as transparent as it claims to be.