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Why Azure’s cloud chief believes Microsoft is in prime position

Brandon Butler | Dec. 13, 2016
Jason Zander is corporate VP at Microsoft overseeing Azure sales and engineering

Another good example is SharePoint: It's very popular and works very well if I have SharePoint Online. I can also augment it with my own business applications and the identity works, so it’s all in the same cloud with low latency on data access. The way we help customers is if you decide to start on your cloud journey with one of these components it’s easy to adopt the next because they really are designed to integrate very well together.

Can you provide insight on how large of a business Azure IaaS is? Microsoft breaks out revenue for the Intelligent Cloud but I believe that also includes on-premise software. Why doesn’t Microsoft just break out IaaS public cloud revenue?

Our Azure revenue grew 116 percent in the most recent quarter, which is up 121 percent in constant currency year-over-year. If you think about the Microsoft Cloud, which combines infrastructure, PaaS and SaaS offerings like Office 365, Azure and Dynamics, those components are growing super healthy. From an accounting perspective, we haven’t broken out the specific revenue for IaaS and I’ll defer to our business and finance folks that manage those components, but I’ll tell you the thing I do, especially in engineering, is look at what the demand is and it’s crazy off the hook. I’m building out stuff as fast as I possibly can. We deploy more servers in a day now than we did in an entire year in 2011 and that just continues to compound. I’ve got the team cranking 24/7/365 just to keep up with the demand.

How would you classify the most common workloads that are hosted in Azure now? Are the majority still test and development?

I’d say that in this public cloud space in general, the journey that many will start off on is from a SaaS layer they’re going to use Office 365. Then when you get into Azure, then it’s very common to start off with your websites that you’re trying to make public for B2C engagement. DevTest is certainly another big one. There’s also a lot of work around hybrid scenarios, even starting off with simple things like doing backup, disaster recovery and being able to failover from your own data center into our data center. Those all make sense for a lot of companies.

What we’ve started to see mature in many markets is they’re now looking at all their mission-critical workloads. Recently we’ve done more things like SAP deployments, which are basically the anchor store of your IT mall. These types of big enterprise apps are now starting to move into the cloud as well because you can get the same cloud advantages as some of those lower tier apps that have made the move.

 

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