Microsoft Shifts Financial Reporting to Boost Azure Visibility
Microsoft is shaking up its financial reporting structure to better compete in the cloud computing market. The company will start releasing Azure cloud sales on a quarterly basis, allowing for direct comparisons with rivals Alphabet's Google Cloud and Amazon Web Services (AWS).
This change comes as Microsoft prepares to face increased competition from AWS, which reported $128.7 billion in sales last year. Azure is a key part of Microsoft's business, and its growth rate has been closely watched by investors.
Microsoft will now report on two main segments: 'Agents and Infra', which includes cloud computing services, AI-based software, and traditional business software; and 'Devices and Consumer', which covers Windows operating system sales, Xbox gaming unit revenue, and advertising sales across Bing search engine and LinkedIn.