Microsoft (MSFT) is revising the way it reports its quarterly financial results to focus more on its cloud computing operating unit.
The Seattle-based company updated and revised its revenue guidance for its three business segments, providing greater emphasis and insight into its cloud infrastructure business.
Microsoft is stripping out its Office product and software subscriptions from its Intelligent Cloud unit that features the Azure cloud computing business segment.
The company is also removing the Power BI data analytics tool and the Enterprise Mobility and Security group of products from its Azure and other cloud services unit.
Removing these items will provide a greater focus and insight into how the Azure cloud computing segment is performing, said Microsoft in a news release.
Azure is an increasingly important metric watched by analysts and investors as cloud computing is one of the fastest growing areas of Microsoft’s business.
Microsoft Azure is now the second largest cloud computing platform behind only
Amazon Web Services (AMZN).
Under the new reporting structure, Microsoft said that it expects 33% revenue growth for Azure this year.
The stock of Microsoft has gained 32% in the last 12 months to trade at $424.14 U.S. per share.
