Microsoft’s cloud computing platform is generating more than $10.4 million in revenue a year from its subscription-based service, documents show.
Microsoft Chief Financial Officer Robert O’Reilly told investors on Wednesday that the $10 billion in revenue Microsoft earned from Windows 10 Cloud Service in fiscal 2017, which ended Sept. 30, was “incredibly strong” and represents a net increase of $3.9 billion in the company’s net revenue.
Microsoft’s revenue for the first quarter of fiscal 2018 totaled $21.1 billion, a 22 percent increase from the same period in fiscal 2016.
Microsoft reported that revenue grew by 18 percent to $22.6 billion.
O’Reilly said the revenue increase came from the introduction of Windows 10, Microsoft’s next major version of its Windows operating system.
Microsoft launched Windows 10 as a free upgrade in October 2016.
Microsoft has been working on Windows 10 since late last year.
Microsoft had previously launched Windows 7, but it was unable to meet its financial goals.
Microsoft said in a statement that its revenue from Windows Cloud Service grew 17 percent to a record $21 billion in fiscal 2018.
Microsoft will continue to invest in Windows 10 and other software and services, including Office, Bing, and Xbox.
O’,Reilly said that Microsoft’s revenue increase is the result of the introduction and continued adoption of Windows and the adoption of Microsoft Azure as a cloud platform.
Microsoft’s Azure cloud service has been available since early 2016 and is used by some of the biggest companies in the world, including Google, Apple, Amazon, Microsoft, Netflix, and Facebook.