Revenue of Microsoft broken down by segment 2012-2023

In its 2023 financial year, Microsoft generated 69 billion U.S. dollars from its productivity and business processes segment and a further 88 billion through its intelligent cloud segment. Thanks in part to the rapid growth in these two areas, 2023 proved to be the company’s most successful year ever in terms of annual revenue, with the total figure reaching over 211 billion dollars.

Microsoft Corporation

Since its foundation in 1975, Microsoft has grown into one of the most successful tech firms in the world and has experienced years of continued success. In order to ensure that this growth persists, the company has added tens of thousands of employees over the past decade and invested billions into research and development. Some of Microsoft’s major business ventures include its Windows operating system, various lines of consumer electronics, software packages such as Microsoft Office, as well as newer offerings such as cloud computing capabilities.

Intelligent cloud segment

As Microsoft's fastest-growing business, intelligent cloud replaced the more personal computing segment in FY2020 to become the company's largest business segment. The intelligent cloud segment contains Microsoft's public, private, and hybrid server products and cloud services, such as Azure, SQL Server, etc. Together with Amazon Web Services (AWS) and Google Cloud Platform (GCP), Azure is one of the most popular cloud infrastructure as a service (IaaS) offerings. The intelligent cloud segment, however, does not reflect the totality of Microsoft's cloud business, as Office 365 - the company's popular cloud collaboration solution - is grouped under the productivity and business processes segment. The software giant has established a firm footing in the fast-growing cloud market.