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DYNAMICS REVS RISE 4 PERCENT Featured

Satya Nadella, Microsoft Microsoft this week said that Dynamics revenue for the third quarter ended March 31 was 4-percent higher than in last year's corresponding period. This represents an improvement in fiscal 2016 as for the nine months, Dynamics revenue rose 3 percent and during the week's earnings webcast, CEO Satya Nadella said Dynamics AX revenue grew by double digits. The company does not report dollar totals and you have to speculate on the ERP results.

The increase was due primarily to higher revenue from Dynamics CRM Online with the addition of seats double the prior year's total with 80 percent of additions in the cloud. Revenue also got whacked by about 5 percent by currency. Dynamics comes under the company's Productivity and Business Processes segment, which had $6.52 billion in revenue for the most recently ended quarter, up 1 percent over the prior year. Other contributors to the segment are the Office Consumer and Office Commercial lines. Remembering that the LinkedIn page of former Dynamics chief Kirill Tatarinov said he grew the Dynamics business to $2 billion annually, we can do some guessing on the amount per quarter. Now the P&BP total for the recent quarter was $65 million higher than a year earlier. Microsoft reported Office Consumer revenue increased by $23 million and Office Commercial revenue by $20 million, which seems to leave an increase of $22 million for Dynamics as the company did not say there were any other revenue sources in this unit. One interesting note was that the cost of revenue increased $307 million or 32 percent "primarily due to the increasing cloud mix of revenue and higher datacenter costs to deliver cloud services", according to the company's form 10-Q.

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