Microsoft FY 1Q16 Earnings Call Notes

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Time is our scarcest commodity

” Clearly, how people work has changed dramatically but one thing remains true, everyone wants to get more out of every moment of their life. After all, time is our scarcest commodity. That’s why we set out to reinvent productivity and business process. ”

There are only two enterprise cloud platforms at massive scale

” Before I talk about the great progress we are making with our intelligent cloud platform, I want to pause and reflect on where we are as an industry. While many companies are developing commercial cloud offerings, there are really only two driving enterprise cloud platform innovations at massive scale, Amazon and Microsoft. We push each other and we each have a unique approach.”

Microsoft has bet on building hyper scale public cloud and creating true hybrid structure

“Microsoft has bet on a strategy to build a hyper-scale public cloud as well as reinvent servers as the edge of our cloud. This approach gives customers a true hybrid distributed computing platform that reflects their real world needs. Our unique hybrid approach coupled with high value services is clearly a structural advantage.”

Azure revenue has more than doubled

” Azure revenue and compute usage more than doubled year over year and we are continuing to channel our innovation into high growth scenarios with new features and services. ”

Bing has 20% share in the US

“Windows 10 is also driving increased usage of other Microsoft services. Specifically, Bing’s share is up to 20.7% in the US and advertising revenue grew 29% worldwide, helped by Windows 10 users asking Cortana more than 1 billion questions.”

Enterprise cloud is the largest tech shift of our generation

“We are poised to seize the opportunity of the largest technology shift of our generation with the enterprise cloud.”

We think of our servers as the edge of our cloud

“we don’t think of our server as a legacy business. I think of it as the edge of our cloud. ”

Office 365 has 60m monthly active users

“as far as the Office 365 usage itself, I talked about some of the numbers of 60 million monthly active users, the fact that our seats grew 66% year over year.”

IaaS leads PaaS and SaaS in growth

“on the mix between IaaS and PaaS and SaaS, the thing that we are seeing is, quite frankly, all of these are growing but the most interesting thing for me as a pattern is growth in IaaS leads to growth in other PaaS services or SaaS services.”

I’m very, very excited about Bing

I’m very, very excited obviously about what’s happening with Bing. I think Amy talked about we have a $1 billion quarter with 29% growth and good share position growth in the United States.”