Microsoft aims for $20bn cloud run rate in FY18

Satya Nadella claims Office 365 and Azure will be partly behind the rocketing growth

Microsoft is aiming for its annual run rate in the cloud to smash the $20bn (£13bn) mark by FY18.

Microsoft's chief executive Satya Nadella set the lofty goal at the vendor's Financial Analysts Meeting yesterday.

"We have an ambition to get to $20bn of annualised run rate in the cloud in FY18," he said. "That's our target, and that's what we're going to pursue with the strategy I just laid out. And this, by the way, is about the combination of what we have today in Office 365, Dynamics, EMS, Azure."

According to Microsoft's Q3 results released last week, the annualised run rate of its commercial cloud – home to some of the products listed above – rose 106 per cent annually (111 per cent in constant currency) to $6.3bn.

Nadella said his "mobile-first, cloud-first" strategy will get Microsoft to its goal.

"Our strategy today is to be a productivity and a platform company in this mobile-first, cloud-first world," he said.

"That's the strategy we're executing on. We have a focus. Our focus, our core, is about being the best when it comes to productivity and platform in this mobile-first, cloud-first world. That is what we want to excel in, that's what's going to drive our growth, that's where we want to make sure we serve our customers, partners, the best."