Microsoft Cloud Revenue is Really Growing Fast
It remains difficult to precisely estimate the amount of cloud service revenue Microsoft actually generates, as it once was difficult to determine the size of Amazon’s Amazon Web Services business.
Microsoft’s cloud revenue is spread across a couple of business units, and also is bundled with revenue from non-related products.
IDC expects the overall cloud infrastructure market to top $32 billion in 2015, with public cloud claiming $21 billion of the market, roughly double its private cloud peer.
Until a day ago, it has been guesswork to determine how much of that public cloud market is owned by Amazon. As it turns out, analyst estimates were very close, estimating AWS revenue at roughly $5 billion in mid-2014.
Analyst Karl Keirstead at Deutsche Bank, had estimated current AWS annual revenue of about $6 billion. As it turns out, that is the current run rate.
Microsoft now is viewed as the number two provider, by revenue share, with a blistering sales growth rate. Some think Microsoft’s cloud revenue run rate (the most recent quarter, times four) is about $4 billion annually.