Microsoft's Q1 FY21 Earnings – Takeaways for Enterprises

Insights for IT Negotiations

Microsoft had a strong start to its Fiscal 2021 and overcame the devastating impact the pandemic has had on many business including many of Microsoft’s customers. Microsoft was able to beat expectations across the board, relying heavily on its commercial cloud offerings (e.g., Microsoft 365, Teams, Azure, Power Platform, Dynamics 365, LinkedIn, etc.). Commercial Cloud revenue ($15.2B) was up 31% in Q1 and now represents 41% of total company revenue ($37.2B). Microsoft is clearly focused on pushing more enterprise customers to the all-in cloud bundle Microsoft 365, moving customers to the most robust E5 edition, getting more Azure use, ramping Power Platform adoption, and selling more Dynamics 365 solutions while taking market share from Salesforce. They have been and will continue to rely on the aggressive sales pitch that “Microsoft offers the most complete and highest value solutions for enterprises”. In this podcast, Microsoft Practice Leader, Adam Mansfield, discusses what enterprises should expect from Microsoft's sales executives who have clearly defined goals. He also shares how customers could potentially take advantage of key insights from the earnings call in their upcoming negotiations and renewals. Host: Adam Mansfield: https://bit.ly/3rPGp8r Microsoft Commercial Advisory Services: https://bit.ly/2V78ADX