Office continues to be bright spot for Microsoft in FY16 Q3, bumping subscriber numbers up to 22.2 million

Microsoft is transitioning to a “cloud-first, mobile-first” company from its previous emphasis on Windows, and productivity solutions are a big part of where the company is headed. Their Productivity and Business Processes division is a testament to the importance of productivity solutions, and once again this division is a financial strength.

The division includes all of the Office and enterprise solutions, such as Dynamics, and it did fairly well overall in FY16 Q3:

Revenue in Productivity and Business Processes grew 1% (up 6% in constant currency) to $6.5 billion, with the following business highlights:

  • Office commercial products and cloud services revenue grew 7% in constant currency driven by Office 365 revenue growth of 63% in constant currency
  • Office consumer products and cloud services revenue grew 6% in constant currency with Office 365 consumer subscribers increasing to 22.2 million
  • Dynamics products and cloud services revenue grew 9% in constant currency with Dynamics CRM Online seat adds more than doubling year-over-year

This performance bodes well for the company’s efforts in transforming itself. Being cross-platform to leverage the strength of iOS and Android in the mobile market is a big part of Microsoft’s strategy, and so we’re likely to see just as much emphasis on it going forward.

Stay tuned for more coverage of Microsoft’s financials.

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