Microsoft 365 Generated Over $20 Billion in Revenues Last Year

Posted on July 28, 2020 by Paul Thurrott in Microsoft 365 with 0 Comments

According to a new report, Microsoft 365 generated over $20 billion in revenues during Microsoft’s last fiscal year.

No, this news didn’t come from Microsoft: The software giant hides the revenues that Microsoft 365 generates, as it does for many of its customer solutions. But it does come from a reliable report from Mary Jo Foley, who cites multiple sources.

Ms. Foley says that Microsoft disclosed the Microsoft 365 revenues during a private Ready session with employees and partners. At $20 billion, Microsoft 365 contributed almost 14 percent of Microsoft’s $143 billion in total revenues from FY2020, which ended on June 30.

The growth is just as impressive: In FY2019, Microsoft 365 generated $13.2 billion in revenues, so the business grew over 65 percent by revenues in just one year.

The E5 SKU, Microsoft’s most expensive Microsoft 365 offering, was apparently the most lucrative as well, despite accounting for only five percent of total Office 365/Microsoft 365 seats overall: It generated $7.5 billion in revenues in FY20, up from $4.2 billion in the previous fiscal year. As Foley notes, Microsoft 365 E5 costs a whopping $57 per month per user, compared to $33 per month per user for E3 and just $10 per month per user for F1 (for firstline workers).

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