Microsoft announced their FY24 Q4 earnings recently, and the total Q4 revenue was reported as $64.7B, better than the $64.39B analysts were expecting. The critically important Microsoft Cloud revenue, which includes Azure, O365 Commercial, LinkedIn, Dynamics 365, and other cloud product, came in at $36.8B, representing a 21% increase year-over-year.
Microsoft’s go-forward success and revenue growth (ARPU growth) will continue to be directly tied to Microsoft’s ability get more customers to adopt their AI solutions (Copilot for Microsoft 365, Copilot for Sales, Copilot for Service, GitHub Copilot, and Azure OpenAI) and increase volume over time. It is also heavily tied to Microsoft customers migrating to the costly all-in Microsoft 365 E5 suite. Microsoft also must continue to focus on getting customers to accelerate their Azure consumption and, at the very least, maintain current Unified Support.
In this podcast, our Microsoft Practice Leader, Adam Mansfield, discusses how enterprise customers can take advantage of Microsoft’s needs and focus areas to ensure the right deal is struck at the negotiation table. He also covers what enterprise customers should expect from Microsoft as they prepare for their renewal negotiations.
