Microsoft Puts $29B Price Tag on Azure Cloud Growth

Microsoft has finally put a dollar figure on its Azure cloud platform, reporting that it reached $29.42B in revenue for the June quarter, a 42% increase from the previous year. This growth is substantial, making up approximately 33% of Microsoft's total revenue.

The company has introduced a new two-segment structure to report Azure's revenue, with Agents and Infra, and Devices and Consumer being the two main categories. This change is part of a broader reporting overhaul, as revealed by CNBC.

Azure's growth has been significant, but what counts as Azure has narrowed under this new structure. GitHub cloud services, developer cloud services, the Security Copilot assistant, and healthcare and life sciences products are no longer included in the line.

This change is notable because it brings Azure closer to the perimeter of Brussels' toughest tech rules, which have been drawn over the past year. The European Commission has reached a preliminary position that both Amazon Web Services and Azure should be designated as gatekeepers under the Digital Markets Act.