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DYNAMICS REVS RISE 3 PERCENT Featured

DynamicsDynamics revenue for the second quarter ended December 31 rose by 3 percent over the prior year, Microsoft said in its earnings report this week. The company, which does not breakout revenue numbers for the software line, said that was primarily because of the year-over-year doubling of the sale of seats for Dynamics CRM Online The totals were depressed by about 8 percent by the impact of currency changes.

Dynamics results are buried in the Productivity and Business Segment, which reported revenue of $6.69 billion for the most recently ended period, off 2 percent from $6.82 billion a year ago. What that tells us is what we've known for a while—that ERP revenue increase cannot be that great if adding in the hot CRM business numbers yields single-digit revenue growth overall. Revenue for the company's Intelligent Cloud business hit $6.34 billion, up 5 percent from slightly more than $6 million in last year's corresponding period. Intelligent Cloud comprises server products and cloud services, including Windows Server, Microsoft SQL Server and Azure, and Enterprise Services, primarily Premier Support Services and Microsoft Consulting Services. The segments are new reporting segments and this shows the impact of Microsoft turning away from having Dynamics operate as a separate business line.

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