Azure was up 51 percent (from some undisclosed base number) for the quarter and Dynamics 365 was up 49 percent from some undisclosed base – its third consecutive quarter of growth. There’s a lot of headroom for upselling customers to Microsoft’s most expensive E5 SKU of Microsoft 365/Office 365, since only eight percent of Office 365 users are currently on Office 365 E5, Hood noted. Microsoft 365/Office 365 consumer subscribers are now at 51.9 million, up from 50.2 million in Q3 FY21. And Office 365 Commercial products and services grew 20 percent from the year-ago quarter. (Microsoft didn’t disclose a new O365/M365 Commercial subscriber count.) Last year during its fourth quarter earnings report, Microsoft officials talked about weaknesses in small/midsize business (SMB) spending as affecting its various businesses. Based on today’s earnings report and forecast, that SMB spending weakness is over.
