Dynamics 365 is now more than half Microsoft's $3B business apps revenue

August 26 2020

For all the excitement around the Power Platform, Dynamics applications still dominate Microsoft's business applications balance sheet. And the company now says the Dynamics 365 suite of (primarily) cloud-based application now dominate Dynamic revenue, making up the majority as compared to the revenue generated by the older on-premises products.

Mike Spencer

Speaking at the BMO Technology Summit Conference Call on August 25 (transcript and video), Microsoft investor relations GM Mike Spencer took analyst questions about the company's recent performance and outlook, covering topics like Windows and Microsoft 365, Teams, business applications, Azure, and gaming.

The analyst asking the questions, Keith Bachman of BMO Capital Markets, characterized business applications as 3 percent of Microsoft's revenue. Given Microsoft's 2020 revenue of $143B, that would position Dynamics at about $4.3B annually. But Spencer responded that Dynamics revenue is now above $3B annually:

About Jason Gumpert

As the editor of MSDynamicsWorld.com, Jason oversees all editorial content on the site and at our events, as well as providing site management and strategy. He can be reached at jgumpert@msdynamicsworld.com.

Prior to co-founding MSDynamicsWorld.com, Jason was a Principal Software Consultant at Parametric Technology Corporation (PTC), where he implemented solutions, trained customers, managed software development, and spent some time in the pre-sales engineering organization. He has also held consulting positions at CSC Consulting and Monitor Group.

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