Microsoft Q4 strong, Azure growth 29% and a bit light
Microsoft delivered a better-than-expected fourth quarter and said Azure revenue growth was up 29%.
Microsoft delivered a better-than-expected fourth quarter and said Azure revenue growth was up 29%.
Microsoft announced a bevy of additions to Azure including AMD Instinct MI300X instances, Cobalt 100 instances in preview and the latest OpenAI model, GPT-4o, in Azure OpenAI Service.
Microsoft Fabric is getting tools and workloads to analyze real-time streaming data as well as integration with Snowflake and Databricks platforms.
Microsoft reported a strong third quarter with revenue growth was 17% with Microsoft Cloud revenue up 23% from a year ago. Azure and other cloud services revenue growth was 31% driven by AI services.
The price changes go into effect Oct. 1 and range from an additional $10 to $15 more a month per user for most apps, but $30 more for a select apps.
Microsoft is shoring up its consumer Copilot efforts with the addition of Mustafa Suleyman and Karén Simonyan to lead a new group called Microsoft AI. Suleyman and Simonyan were two of three co-founders of Inflection.ai.
Microsoft launched Copilot for Security, but the most interesting item is the software giant's monetization model. Copilot will go for $4 an hour in a pricing model that positions generative AI more like an inexpensive digital worker.
Microsoft said Azure delivered revenue growth of 30% in its fiscal second quarter and CEO Satya Nadella noted that moved from "talking about AI to applying AI at scale."
The Microsoft Copilot model updates land between the OpenAI soap opera and AWS' launch of its Q generative AI assistant that runs across its services.
Microsoft hires ousted OpenAI CEO Sam Altman. "We have confidence in our product roadmap, our ability to continue to innovate with everything we announced at Microsoft Ignite, and in continuing to support our customers and partners," says Satya Nadella.
With enterprises still kicking the tires on large language models (LLMs), use cases and generative AI applications, vendors are big on providing choice, bring-your-own-models and the ability to mix and match foundations.
At Microsoft's Ignite 2023 conference the company fleshed out its generative AI offerings and strategy and, in some places, put some serious distance between it and the competition.