Faster adoption and higher satisfaction than ever… That’s Windows 11

Windows 11 officially launched on October 25th 2021 and ever since that day, Microsoft have been working hard ensure it’s shipped by default with all new modern PCs as well as of course through the free upgrade on supported Windows 10 devices.

Whilst there are still some niggles and bugs reported by users such as task bar functionality and the controversial move of the start menu (which can me moved back to the left if preferred), feedback continues to make a difference and Microsoft are still hard at work on features and updates which will be part of the first major update later this year (currently being tested by #WindowsInsiders as usual).

Microsoft announced, as part of their FY22 Q2 earnings call, a new Windows  blog post which highlights the scale and growth of the Windows market, user satisfaction and adoption.

The blog post cited a number of stats including the rapid adoption rate of Windows 11 stating that “Windows 11 also has the highest quality scores and product satisfaction of any version of Windows we’ve ever shipped.”

The PC is more important than ever

According to Microsoft, people are spending 40% more time on their Windows 11 PC when compared to how people used Windows 10. Whilst Microsoft don’t provide substantial details around how the data is collected, its likely as a result of the huge amount of telemetry data that Microsoft have across their product use. Of course Windows 11 has only really “existed” during these COVID-19 times, which is likely to be part of the reason people are spending more time on their devices than pre pandemic.

Over 1.4 Billion Windows devices

In the earnings call, Microsoft said they exceeded expectations for device shipments in Q2 and also exceeded their personal computing segment. Microsoft shared figures for Windows 11, Windows 10, Microsoft Teams, and their other services in a call to investors.

The big stat that was called out was that the total number of devices running Windows now stands at over 1.4 billion devices.

More Personal Computing earnings (Q2 FY2022)

Windows OEM licensing was up by a massive 25% this quarter driven by continued growth in the PC market, despite the on going global chip shortage.

Related to the above, Microsoft Surface revenue also grew by 8%, driven by unprecedented demand for Surface Laptop and Surface Pro 8.

Other OEMs like HP, Lenovo and Dell, Lenovo have also recently published record growth numbers which also help drive that a Windows 11 number upwards.

Microsoft beats revenue expectations, reporting 22% growth in Q1 2022

Microsoft Q1 2022 revenue grew almost 22% year over year, which is the fastest growth since 2018 with revenue growth of 21% over the previous quarter.

  • Intelligent Cloud – which includes Azure, GitHub, Windows etc, was up 31% year over year and delivered $16.96 billion in revenue.
  • Productivity and Business Processes – which includes Dynamics, LinkedIn and Office, was up 22% and delivered $15.04 billion in revenue (within this segment Dynamics itself grew 48%).
  • Personal Computing business, including Windows, devices, gaming and search advertising, was up 12% with$13.31 billion in revenue.

This quarter has seen Microsoft introduce new Surface devices and announce acquisitions of several cyber security start ups including CloudKnox and RiskIQ. They also have taken on Amazon cloud executive Charlie Bell to work on cybersecurity and committed to spend even more security research and development with $20 billion announced over the next 5 years.

Image (C) CNBC

Price rises for Office 365 are coming too… as earlier this quarter, Microsoft annouced that Office 365 commercial licenses were increasing by 10% across all but their E5 suite. This doesn’t affect edu, nfr or consumer.

You can read the full press release here

Microsoft beats FY21 Q3 revenue expectations on back of strong cloud and PC sales

Another blinding quarter for Microsoft as they report on their 2021 Q3 Fiscal.

Revenue: $41.7 billion vs $41.05 billion expected

Earnings per share: $2.03 vs $1.78 expected

The biggest winners as above were its Azure Cloud business (Intelligent Cloud) and strong revenue off the back of strong PC sales.

Azure leads the Growth

Unsurprisingly, Microsoft’s biggest growth, and the areas that has pushed its market capitalisation needle to almost $2 trillion, is its Azure cloud division. For the last quarter, Microsoft saw $15.12 billion in revenue from the segment, a 23% year-over-year increase. Azure growth is up 50% YoY.

Intelligent Cloud: $15.12b vs $14.9b expected

Productivity and Business Process: $13.6b vs $13.2b expected. Increase of 15%

More Personal Computing: $13.04 billion versus $12.6 billion expected

Over a year into the COVID-19 pandemic, the digital adoption curves aren’t slowing down, they’re accelerating, and it’s just the beginning,” said Microsoft CEO Satya Nadella.We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform“.

The other stars of the show

In addition to Azure, Microsoft saw:

  • 19% growth in Personal Computing growth of more than 10% year on year growth of Windows 10 revenue.
  • 35% increase in Xbox and Gaming Revenue
  • Microsoft 365 Consumer subscribers increased to 50.2 million
  • LinkedIn revenue increased 25%
  • Dynamics products and cloud services revenue increased 26% driven by Dynamics 365 revenue growth of 45%
  • Surface revenue increased 12% (up by $1.5 billion). Surface continues to grow at a steady and modest pace despite chip shortages and increased competition.

And Teams?

Well of course this is all part of Offixe 365 but… Some great numbers here too.. Microsoft seem to have consistent teams Daily active usage of 145million daily active users… 100% growth on this time last year as nicely announced by Jeff Teper