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Microsoft’s Cloud Strategy is Paying Off!

Microsoft’s cloud strategy is paying big dividends, which is great news for both Microsoft’s customers and partners like SAGlobal. In Microsoft’s recent earnings release, the company revealed that they generated over $100B in annual revenue for the first time. This was largely fueled by strong growth in the company’s cloud services, including Azure, Dynamics 365, and Office 365.

Specifically in the Dynamics 365 area, Microsoft grew their revenue by 61%. This is on the heels of 65% growth in the prior quarter. This strong growth far outstrips what we’re seeing from other large, mature cloud business applications vendors.

Why is this important to customers, prospective customers, and Microsoft partners?

This growth in revenue provides Microsoft the confidence to continue to invest heavily in building out and growing their Dynamics 365 solutions. Microsoft has led the market in terms of R&D expenditure for many years, far outstripping the investments made by their peers. In fact, in Microsoft’s latest fiscal year (FY2018), they invested $14.7B in R&D, which includes their product development investments. This aggressive investment means that Microsoft’s cloud services, including Dynamics 365, will continue to advance farther and faster than the competitive offerings, providing more value to Microsoft’s customers and partners.

It certainly appears that these investments are paying off!

To read more about Microsoft’s earning summary for Q4 FY2018, please click here.

About the Author

Andy Yeomans

Andy Yeomans

Andy Yeomans is Director of Business Development for SAGlobal, where his role is to help project-driven organizations evaluate and select ERP software systems to better manage their finances, projects, clients, and resources. Andy was instrumental in developing the organization's Microsoft Dynamics 365 industry solutions and practice area for the AE & Environmental industry. Andy has over 17 years of ERP experience and has helped dozens of AE & Environmental firms evaluate, select, and implement ERP software systems for their business.

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