Microsoft to double cloud data centre spend to US$15bn

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Microsoft to double cloud data centre spend to US$15bn

Microsoft is set to spend US$15 billion on cloud computing data centres this year, up from US$8 billion last year, building new facilities on average at a rate of one per week.

That was just a few of the mind boggling statistics that Microsoft East Region Vice President Karen Del Vescovo shared Tuesday US time with 150 IT leaders at cloud computing superstar solution provider GreenPages' 20th annual Cloudscape Summit at Portsmouth, USA.

Microsoft chief financial officer Amy Hood will effectively "write a US$15 billion cheque" for the cloud data centres that Microsoft will build this year, said Del Vescovo.

"Not many CFOs get to do that," she said. "That is pretty impressive. She is well aligned with (Microsoft CEO) Satya (Nadella) on how we are going to continue to build this vision out."

Microsoft now has more global data regions than any other provider with 34 data centres around the globe, more than double Amazon Web Services and Google combined, said Del Vescovo. "We are continuing to build out data centres, maintaining this hyper-scale capacity as we move forward," she said.

There are now 1.6 million SQL databases running on Azure; 2 trillion messages per month processed by Azure Internet of Things platform; 777 trillion storage transactions per day, with over 500 million users now in Azure active directory, said Del Vescovo.

Microsoft is adding on average over 120,000 Azure subscribers per month, up from just 60,000 per month, said Del Vescovo, with 40 percent of Microsoft's sales now coming from startups and ISVs, said Del Vescovo.

"You should feel some sense of anxiety if you are not already getting there because everybody else is rushing to really disrupt your industry," she told IT leaders.

Over 85 percent of the Fortune 500 use Microsoft cloud products with more than 60 percent of them using more than three cloud products from the company, said Del Vescovo.

Microsoft is now a leader in 17 of the Gartner Data Center magic quadrants compared with six for, three for Amazon Web Services, and one for Google, said Del Vescovo.

Del Vescovo praised Nadella, who took the helm at the company in February 2014, for driving a cultural change that has powered Microsoft's cloud computing growth.

Nadella has done a "masterful job" of driving a cultural transformation eliminating silos and business groups that created a lot of competition internally, said Del Vescovo.

"He has really broken that down so that we can optimise all the resources across the organisation and really bring solutions to life regardless of what business group they come from," she said.

This article originally appeared at

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