So Microsoft is hardly a newly minted public firm, the frequest focus of our 5 Attention-grabbing Studying collection. But it surely’s grow to be so central to Cloud the previous years, and each LinkedIn and GitHub (which Microsoft acquired) are on the pulse and coronary heart of B2B and B2D, respectively. So it’s an incredible and necessary one for us all to be taught from.
And at $260 Billion in ARR, what’s the #1 studying? Nearly every little thing in Cloud, SaaS and AI is firing on all cylinders at Microsoft:
- Azure and Cloud up +30% (!)
- General Cloud up +22% (!)
- Dynamics (its CRM and extra) up +19% (!), at the same time as Salesforce has seen progress gradual to single digits
- LinkedIn up +10%, and accelerating (!)
- Workplace up +12% and seats up +7% (!)
- GitHub has doubled in previous 24 months to $2B ARR (!)
That’s breathtaking at Microsoft’s scale.
5 Attention-grabbing Learnings:
#1. LinkedIn Progress Accelerating — And No Downturn
This is perhaps the #1 studying for many people in B2B, as LinkedIn in the end is on the coronary heart of B2B spend, in each promoting and recruiting. And what are we seeing? Acceleration. 5 quarters in the past, LinkedIn was rising 6%. A yr in the past? 8%. And as we speak? 10%. (Sure, the fixed forex math confuses it a bit, however the acceleration is there).
#2. 60,000 AI-on-Azure Clients, and Accelerating — Up a Gorgeous 60% Yr-over-Yr
All of us form of knew this, however useful to see the numbers right here.
#3. GitHub ARR Over $2 Billion, Doubled in Previous 24 Months
AI Co-Pilot is a giant a part of it, fueling 40% of progress, however so is the straightforward progress of SaaS and Cloud total. GitLab has seen similar growth, and few to no “macro” effects. Apparently, it additionally exhibits GitHub is about 3x the dimensions of GitLab ($2B ARR vs. 700m ARR) and rising simply as rapidly.
#4. Paid Workplace Seats Are Up +7%, Paid Safety Seats Up +10%
Many SaaS leaders in additional impacted segments are citing seat contraction as one of many prime causes for slowing progress. However not Microsoft. Workplace 365 seats proceed to develop, up +7% this yr.
#5. Consumption Income and Utilization Rising Even Sooner Than Seat Progress
Many as we speak are seeing consumption-based fashions endure as prospects in the reduction of. MongoDB has been hit exhausting right here for instance, as prospects average workflow spend. However not Microsoft. Their consumption progress is even quicker than seats.
Not every little thing is ideal at Microsoft. Gaming progress has slowed, and its large buy of Activision has seen very gradual progress.
However the Cloud and AI facet of Microsoft? It’s about pretty much as good because it will get, or has ever been at Microsoft.
Let that encourage you.
