Microsoft Azure and Google Cloud results soar as the world goes digital

Representational image depicting the ease of use of cloud computing
(Image credit: Shutterstock)

Both Microsoft and Google have issued strong quarterly results driven by a healthy increase in revenues of their respective cloud computing divisions.  

Microsoft Cloud generated $20.7 billion in revenue for Q3 2021, which is an year on year increase of 36%, driven by a 50% growth in Azure and other cloud services revenue.

Similarly, Google Cloud revenues neared $5 billion thanks to a 45% jump, while operating loss narrowed to $644 million from $1.21 billion a year ago.  

“As the digital transformation and shift to hybrid work continue, our cloud services are helping organizations collaborate and stay secure,” observed Sundar Pichai, CEO of Alphabet and Google, though the same holds true for Microsoft and Azure as well.

Intelligent cloud

In terms of overall revenues, Google reported an income of $65.1 billion in the quarter, while Microsoft clocked in $45.3 billion.

Both however credit the increased adoption of their respective cloud services as the driving force behind the impressive growths.

While Pichai touted Google Cloud’s artificial intelligence (AI), and data analytics prowess, Microsoft pinned the growth to the increased focus on its cloud-based services, which it refers to as the “intelligent cloud.”

Microsoft’s results showed that revenue in Intelligent Cloud was $17 billion, an increase of 31%. The company also registered an increase of 23% in sales of commercial Office 365 subscriptions, while consumer Microsoft 365 subscriptions increased to 54.1 million. 

Google Cloud clubs revenues generated from both Google Cloud Platform (GCP) services and Google Workspace collaboration tools. However, SDXCentral notes that during an earnings call, Alphabet CFO Ruth Porat said GCP’s revenue “was again above cloud overall, reflecting significant growth in both infrastructure and platform services,”

Mayank Sharma

With almost two decades of writing and reporting on Linux, Mayank Sharma would like everyone to think he’s TechRadar Pro’s expert on the topic. Of course, he’s just as interested in other computing topics, particularly cybersecurity, cloud, containers, and coding.

Read more
Microsoft Copilot on a laptop.
Microsoft reveals massive financial growth once again, cloud and AI lead the way
Digital clouds against a blue background.
Cloud spending to reach a staggering $723bn in 2025, thanks partly to the explosive demand for AI resources
Data center racks with cables and servers
Spending on data centers hit a high in 2024, but it won't last
Digital clouds against a blue background.
Spending on cloud infrastructure could actually fall in 2025
Digital clouds against a blue background.
GenAI development is pushing along cloud adoption at a record pace
Digital clouds against a blue background.
UK government says Microsoft and AWS unfairly dominate the cloud market
Latest in Pro
Hands typing on a keyboard surrounded by security icons
Outdated ID verification myths put businesses at risk
China
Chinese hackers targeting Juniper Networks routers, so patch now
Google Meet create custom backgrounds
More AI features are coming to Google Workspace
Google Chrome dark mode
Google updates Chrome extension rules to ban affiliate link injection without user action or benefit
Abstract image of robots working in an office environment including creating blueprint of robot arm, making a phone call, and typing on a keyboard
This worrying botnet targets unsecure TP-Link routers - thousands of devices already hacked
Windows 10 button on a keyboard
Microsoft’s Remote Desktop app becomes the Windows App
Latest in News
GTA 5
GTA Online publisher Take-Two is gunning for a black market that’s basically heaven for cheaters
The Discovery+ homepage
Discovery+ just got a big update to its streaming app that makes it more like Max – here are 5 great new features to try
Two Android phones on a green and blue background showing Google Messages
Struggling with slow Google Messages photo transfers? Google says new update will make 'noticeable difference'
China
Chinese hackers targeting Juniper Networks routers, so patch now
Google Meet create custom backgrounds
More AI features are coming to Google Workspace
Elayne, Egwene, and Nynaeve dressed regally and on horseback in The Wheel of Time season 3
'There's a reason why we do it': The Wheel of Time showrunner responds to fans who are still upset over the Prime Video show's plot alterations