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Top 9 Surprises From Microsoft's Q1 2016 Results

Microsoft latest earnings call had some eye-openers, including Azure revenue doubling and CEO Satya Nadella saying Microsoft and Amazon are now the 'only two' enterprise cloud platforms that matter.

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Office Just Isn't What It Used To Be

Microsoft said consumer Office 365 subscription revenue finally offset losses it has seen in Office licenses. Still, Office consumer products and cloud services revenue fell 13 percent (down 4 percent in constant currency). But the same can't be said for enterprise where licensing still is more lucrative to Microsoft than Office 365 subscriptions.

That said, Office commercial product and cloud services revenue fell 2 percent year over year but grew 5 percent in constant currency, which Microsoft credited to Office 365 transitions. Still, overall Office 365 revenue was up almost 70 percent, with Microsoft now counting 18.2 million subscribers, about 3 million of whom are new.

 
 
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