Microsoft's cloud-based apps like Office 365 are expected to be "a lot bigger than anything we've achieved," said CEO Satya Nadella, speaking at the Morgan Stanley Technology Media and Telecom conference, reports CNBC.
Additionally, Microsoft's business intelligence software for the cloud, Power BI, used for analyzing enterprise data, had a $500 million annualized revenue run rate, according to Nadella.
- Under Nadella's guidance, Microsoft has actively shifted away from the consumer market and toward the enterprise market, reports ZDNet. Of the $28.9 billion in revenue the company made in Q2 FY18, approximately $19 billion was from "large corporations and government agencies."
Microsoft is a 43-year-old company credited with making personal computing accessible and yet that isn't enough. Companies use Microsoft products and services across departments — from onsite desktops, software and Azure subscriptions, and help services.
However, the cloud and all of its potential is the next frontier and Microsoft is taking no backseat, even to AWS. Azure grew its market share to 20% in Q4 FY17 while AWS dropped its share by 6%, though it still holds 62% of the market.
Microsoft's natural growth in the cloud market is due to "more pre-built models" compared to its competitors in the public cloud space, according to analysts.
Microsoft is continually shifting its focus to the enterprise with new bundles like Microsoft 365. The company announced the package of Office, Windows, security and mobility solutions in July. And when coupled with interoperability across the industry, Microsoft can successfully maintain its status as a one-stop-shop for the enterprise.