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Microsoft includes a bunch of non-Azure products under their cloud revenue. And they do it to confuse people and falsely claim they're outpacing AWS, which as
by nostromo 8y ago
Microsoft includes a bunch of non-Azure products under their cloud revenue. And they do it to confuse people and falsely claim they're outpacing AWS, which as you just proved, works.
- GVIrish 8y agoWhy shouldn't Office365 be counted in cloud revenue? "Cloud Revenue" doesn't exclusive mean IaaS or PaaS.
- techfoolery 8y agoBecause SaaS isn't cloud computing. SaaS is essentially a fully available software application that you don't run on your own machines. There's similarities, but key differences that you can easily look up to better understand. Hence part of why most aren't huge fans of including O365 to claim Azure's bigger than AWS.
- ticmasta 8y agoDo you think Amazon subtracts their own massive utilization of AWS out from their numbers? Not likely.
- TomVDB 8y agoDo you think it’s a major fraction? I doubt it, but that’s just speculation without anything to back it up. So any concrete data would be interesting.
- greenail 8y agoHow is buying your own product GAAP? None of the cloud providers can claim their usage of their own products as revenue, it is a cost.
- GVIrish 8y agoIf the claim is that Azure is generating more revenue than AWS, then yes I would say that is misleading. If the claim is that Microsoft's cloud revenue is bigger than Amazon's, I would assume that includes Office365. Office365 isn't just Word and Excel on the desktop, it's Outlook, Dynamics CRM, Sharepoint, Teams, etc.
- deleted 8y ago[deleted]
- lozenge 8y agoBecause most of the revenue is from businesses buying it to install Office on their computers and not using any of the online services.
- GVIrish 8y agoWhether or not a company is taking full advantage of Outlook, Flow, Sharepoint Online, etc doesn't really matter in terms of revenue. If a company is paying for cloud products, that counts towards Microsoft's cloud revenue. Even if the bulk of the Office365 ecals they're selling are for the lowest tier offering that still includes Outlook and Onedrive which a lot of organizations use fairly heavily.
- gzu 8y agoExactly! Microsoft is exploiting the “cloud” buzzword when including Office 365. I’m sure old baby boomer investors/advisors/managers couldn’t tell the difference. They want to be in the “growing cloud space”. Office 365 is just a continuation of the monopoly Excel and Word have on the business software market
- king_magic 8y agoI'm pretty skeptical of your claim there. I'm happy to admit I'm wrong if that's truly the case, but let's see some reputable references that backs that up first. I haven't been able to find anything that substantiates that claim.
- kgwgk 8y agohttps://www.zdnet.com/article/microsoft-is-adding-commercial-linkedin-revenues-to-its-commercial-cloud-tally/ https://www.zdnet.com/article/microsoft-is-adding-commercial...
- lwkl 8y agoI agree with you but it makes sense to include Office 365. Amazon offers mail hosting and office software in AWS as well. Edit: Okay they only offer document storage you still need to edit your documents with MS Office.