Microsoft on Tuesday said it expects the growth across its cloud business to temper down through 2023 as enterprises brace for economic headwinds.
The Windows-maker reported 29% growth in total cloud revenue to $21.5 billion for the second quarter of fiscal year 2023, slowing from Q1, 2023 where the company posted 31% growth for the segment. These numbers exclude the impact of currency fluctuations. Microsoft said it expects its third quarter cloud gross margin to decrease by one percentage point, driven by Azure.
Microsoft Azure and other cloud services grew 38% in constant currency terms on a year-on-year basis, slowing down by 4% from the previous sequential quarter.