"The primary driver continues to be Microsoft Cloud. When Satya Nadella became CEO in 2014, the Commercial Cloud businesses – primarily Azure and Office 365 Commercial - generated less than $5 billion in annualized (run rate) revenues. A year later, in April 2015, management set a goal of $20 billion in run rate Commercial Cloud revenues by YE FY18. As shown below, they exceeded that target by a wide margin, with Q4 FY18 run rate revenues of ~$28 billion – and they’ve kept marching forward ever since. As of Q1 FY24, run rate revenues for Microsoft Cloud are now at ~$127 billion – larger than Microsoft’s total annual revenues just five years ago (~$126 billion in FY19). Put differently, this was a ~$61 billion business in Q1 FY21 – and it more than doubled in size over the next three years. Naturally, this astounding growth had led to mix shift: Microsoft Cloud accounted for the majority (56%) of their Q1 FY24 revenues, up from ~30% in Q1 FY19."