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DYNAMICS TO GET MORE INVESTMENT? Featured

Dynamics revenue grew 12 percent for the second quarter ended December 31, up 15 percent in constant currency. But Microsoft’s highly guarded comments about the product line during this week’s earnings webcast suggested Dynamics will get more attention in the second half as Dynamics 365 revenue was up 42 percent, 45 percent in constant currency for the most recently ended period.

The company does not break out Dynamics revenue. CFO Amy Hood talked about Dynamics generating penetration by more Microsoft products. “You add a seat and then you add workloads,” she commented in response to an analysts’ comments. Hood also seems to suggest there were be more detail about Dynamics in the future in terms of attachment of other products “So, I think that's a frame that I'll start to talk a little bit more about as we learn more about Dynamics 365 and its momentum,” Hood said. “This is another place I will call out where I do think we'll sort of focus and continue to make some investments in H2, based on the momentum we have seen in H1.”  So despite the maybe-sort-of tone, it does suggest more investment, more attention." Dynamics revenue falls under the category of  Productivity and Business Processes, which had revenue of  $11.8 billion , an increase of 17 per cent from  $10.1 billion in last year’s corresponding period.

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