Microsoft wants to Earn $20 Billion Annually in Cloud Revenue by 2018

Microsoft is looking to take the things to the next level as they will try to increase revenue from their cloud services.

Microsoft is targeting to earn $20 billion from their cloud based services by the year 2018. The Chief Executive of Microsoft Satya Nadella wants the company to expand its cloud based services so that they could triple their revenue from it.

Microsoft are the leaders when it comes to cloud and they provide a lot of computing power and storage to customers from their many data centers. Currently Microsoft are earning $6.3 billion from their online version of Office and Dynamic applications.

Amazon is Microsoft’s closest rival as they earned $1.57 billion in their first quarter. They too earn around $6.3 billion a year. So this is why Microsoft is looking to take down its competitors and earn $20 billion in the fiscal year that ends in June 2018.

Amy Hood who is the Chief Financial Officer at Microsoft said that in this current fiscal year, Microsoft will have a gross margin for its commercial cloud business of 44 percent.

Amy Hood also said that the company’s operating costs for the fiscal year will begin from 1st July and they will be the same as in the current year. According to Bloomberg, she also said that Microsoft will look to incur their expenses to support their cloud ambitions.