Cloud drives Microsoft revenue to grow 6% to $22 bn in Q3 FY 2015

Microsoft today said its revenue in Q3 FY 2015 rose 6 percent to $21.73 billion, while net income dropped 5 percent to $6.59 billion.
Satya Nadella, chief executive officer at Microsoft, said: “Next week at Build we’re excited to share more about how we’re empowering every individual and organization on the planet to achieve more with the next generation of our platforms.”
Devices and Consumer revenue grew 8 percent to $9 billion.
Microsoft said Office 365 Consumer subscribers increased 35 percent sequentially to over 12.4 million.
Windows OEM Pro revenue declined 19 percent, as Pro mix returned to pre-Windows XP end-of-support levels and the business PC market declined.
Windows OEM non-Pro revenue fell 26 percent, primarily due to channel inventory drawdown and ongoing mix shift to opening price point devices.

Microsoft CEO Satya NadellaSearch advertising revenue grew 21 percent, with Bing U.S. market share at 20.1 percent, up 150 basis points over prior year.
Xbox Live usage grew over 30 percent, driven by increased users and deeper user engagement.
Surface tablet revenue rose 44 percent to $713 million — driven by Surface Pro 3.
Phone Hardware revenue was $1.4 billion. Microsoft sold 8.6 million Lumia units during the quarter.
Commercial revenue grew 5 percent to $12.8 billion.
Commercial cloud revenue grew 106 percent — driven by Office 365, Azure and Dynamics CRM Online.
Microsoft said server products and services revenue grew 12 percent, with premium versions of Windows Server, System Center Server and SQL Server together growing 25 percent.
Office Commercial products and services revenue declined 2 percent; transactional revenue was impacted by the continued transition to Office 365 and declines in business PC sales following the XP refresh cycle.
Windows volume licensing revenue declined 2 percent, with transactional revenue declining following the XP refresh cycle partially offset by annuity revenue growth.
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