The $110 billion for Microsoft’s fiscal year of 2018 means the company has crossed the $100 billion annual revenue milestone for the very first time in the company’s history.
Of the total, $23 billion of the revenue was generated thanks to their commercial cloud services, including:
– Microsoft Office 365
– Microsoft Azure
– Microsoft Dynamics 365
Another $4.6 billion of the revenue was brought in by Surface, while gaming generated $10 billion and LinkedIn contributed $5 billion.
Despite all these successes, Microsoft still hasn’t managed to reach the milestone of 700 million active devices running Windows 10. According to the company, however, they are quite close to hitting it.
One year ago, Microsoft adjusted their sales strategy, which ultimately led to firing several thousand employees. From that point onwards, the company started focusing on targeting large enterprises. Even though this is their primary focus, they still retained a smaller segment focused around targeting the small, medium, and corporate level businesses.
Amy Hood, Chief Financial Officer at Microsoft, reports that in fiscal year 2018, Microsoft closed a record amount of cloud agreements worth multiple million dollars, and the company’s number of $10+ million worth of Azure agreements more than doubled.
Satya Nadella, CEO of Microsoft, claims to be seeing an increasing number of Tier 1 workloads.
Microsoft has expressed the company officials’ pride in being able to help their customers through the process of digital transformation. Since their employees are also directly working with customers by developing new software solutions and services, these customers are often referred to as partners.