Microsoft Unveils Standalone Azure Revenue Reporting
Microsoft has announced that it will start disclosing quarterly revenue for its Azure cloud computing business unit. This move comes as part of a broader shift in how Microsoft reports its quarterly results, with the company consolidating its operating segments into two from three previously.
Azure's revenue growth this year is estimated to have been largely driven by artificial intelligence (A.I.) startups OpenAI and Anthropic. The platform has seen significant adoption as customers use it to access A.I. models. In comparison, rival Amazon started disclosing revenue from its AWS cloud unit in 2015, while Alphabet began providing total revenue from Google Cloud in 2020.
Going forward, Azure's revenue will be reported as a standalone item, excluding other cloud services such as GitHub, developer cloud services, and the Security Copilot assistant. Microsoft has forecast 45% year-over-year revenue growth for the Azure cloud unit in the current quarter.