Microsoft Cloud Growth Still Massive in Latest Earnings Report

Microsoft just released its latest quarterly results and is still reporting massive growth in Office 365 and cloud revenue overall.  Cloud revenue grew by 114% year over year and the number of Office 365.  The home version of Office 365 has grown from 7 million to 9.2 million subscribers in a single quarter.  Cloud revenue now represents a $5.5 billion a year run rate.

The Microsoft Surface 3 has also been a surprise hit with a 24% growth rate this quarter.   Surface is now a $1.1 billion dollar business and is reasonably profitable.

Server products led by SQL Server and System Center also grew by 9%.