Microsoft Office 365 recently reached an important milestone by hitting 120 million commercial monthly active users. Only six months ago, in April 2017, that number was 100 million.
In a recent comment made by Microsoft officials, it was indicated that they are expecting that two thirds of their Office business customers will be moving to the cloud at some point in the fiscal year of 2019.
Microsoft Office 365 is considered to be the biggest contribution towards Microsoft’s commercial cloud, its collection of various services includes Power BI, Azure, Dynamics 365, and Enterprise Security + Mobility.
LinkedIn, which Microsoft acquired last year, is not considered to be a part of the commercial cloud package, even though Microsoft has mentioned that it contributes towards the company’s overall earnings. The company states that some integrations between LinkedIn and Microsoft services have already been made.
According to Microsoft officials, this quarter is the last one during which Windows Phone business, and its shutdown, would be dragging down the company’s financial success; this quarter, phone revenue was down another $315M.
Furthermore, they are expecting the Surface business to continue as strongly as it has this quarter. Compared to the quarter one year ago, Surface revenues are up $113M. Effectively, this puts the business at over $1 billion. Microsoft believes that the Surface laptop is to thank for this, which is a brand-new hardware category for the company. However, Surface net income is not disclosed, so it’s impossible to tell whether the business is profitable or not.