Microsoft Acknowledged as a Key HR Software Provider by APPS RUN THE WORLD in the HCM Top 500 Market Report

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Microsoft Strengths, Domain Expertise, and Key Differentiators

Microsoft's strategic investments in OpenAI have significantly contributed to its growth, facilitating the seamless integration of AI tools into its cloud-based services. Azure, in particular, has demonstrated remarkable growth, surpassing its closest competitors in Q2 2024, with a 30% increase compared to Amazon Web Services' (AWS) 13% growth and Google Cloud's 26% growth. This highlights Azure's early dominance in the generative AI market, with its growth expected to remain robust, supported by AI-driven innovations. Microsoft's strong performance in the cloud and AI segments positions it favorably for long-term investors.

Despite a slowdown in Microsoft's productivity and business processes division in fiscal 2023 due to tightened software spending, the division has rebounded with double-digit growth fueled by increased adoption of Office 365, LinkedIn, and Dynamics. Notably, Dynamics has outpaced its competitor Salesforce in the customer relationship management (CRM) market, achieving a 21% year-over-year growth in product and cloud services revenue in the second quarter.

In March 2023, Microsoft announced the introduction of Microsoft 365 Copilot, bringing next-generation AI capabilities to its workplace productivity tools. By combining large language models (LLMs) with business data and Microsoft 365 apps, Copilot enhances creativity, productivity, and skills. This innovative tool empowers users to maintain control over their work, enabling them to decide what to keep, modify, or discard. Integrated seamlessly into everyday apps like Word, Excel, PowerPoint, Outlook, and Teams, Microsoft 365 Copilot enhances collaboration and productivity, allowing users to focus more on essential tasks and less on administrative work.

Microsoft Recent Developments

For the third year in a row, Microsoft surpassed Salesforce to become the No. 1 Cloud applications vendor. After buying LinkedIn in 2016 for $26 billion to increase its Cloud applications recurring revenues and leapfrogging Salesforce, Microsoft is in the process of acquiring Nuance for $16 billion. The proposed deal will add about $100 million in Cloud subscription revenues, enriching its collaboration product portfolio with natural language processing and interactive voice response applications from Nuance. Today, Nuance banks on its Cloud hosting business to help hospitals and physicians incorporate voice recognition apps for transcription and IVR, a potential bonanza for Microsoft in the post pandemic era as telemedicine becomes mainstream. Meanwhile, Microsoft has extended its lead in the Cloud apps market by aggressively migrating its existing customers and signing new ones to its array of Cloud applications from Office 365 to Dynamics 365, aided by growing use of LinkedIn among recruiters and marketers for its HCM and CRM capabilities. The all-encompassing packaging of Microsoft has also helped the vendor expand into the Cloud collaboration apps market with over 145 million daily active users running Teams now bundled into Microsoft 365 apps.

Microsoft Mergers and acquisitions (M&A) Activities

The acquisition of Activision Blizzard, previously announced, was finalized in October 2023 at a total cost of $75.4 billion. Microsoft integrated Activision Blizzard into its Microsoft Gaming business unit alongside Xbox Game Studios and ZeniMax Media. This acquisition granted Microsoft ownership of renowned franchises from Activision, Blizzard Entertainment, and King, including Call of Duty, Crash Bandicoot, Spyro, Warcraft, StarCraft, Diablo, Overwatch, and Candy Crush. As of 2023, this transaction stands as the largest video game acquisition in history by transaction value.

In June 2022, Microsoft acquired Xandr from AT&T. Xandr operates as a data-enabled technology platform, offering tools that facilitate connections between marketers and media owners through data-led advertising solutions across its network. With Xandr, Microsoft aims to enhance the delivery of digital advertising solutions for the open web by leveraging its audience insights, technology capabilities, and expansive global advertising customer base alongside Xandr's robust, data-driven advertising platforms.

In March 2022, Microsoft successfully concluded its acquisition of Nuance Communications for $16 billion. This strategic move is anticipated to contribute approximately $100 million in Cloud subscription revenues, enhancing Microsoft's collaboration product portfolio with Nuance's natural language processing and interactive voice response applications. In October 2021, Microsoft acquired Ally.io to enhance employee experience and engagement within its expanding Human Capital Management (HCM) applications. This acquisition aligns with the development of Viva, an extension of Microsoft 365 designed to amplify enterprise collaboration, which was officially launched in November 2021. Additionally, Microsoft expanded its capabilities in video editing with the acquisition of Clipchamp in September 2021.

Microsoft Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Microsoft applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Microsoft and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Microsoft Dynamics 365, Microsoft Dynamics AX, Microsoft Dynamics CRM Online, Microsoft Dynamics NAV, Microsoft Dynamics SL, Office 365, Linkedin customers.

Microsoft Key Cloud and HCM Applications

Microsoft Dynamics 365, Microsoft Dynamics AX, Microsoft Dynamics CRM Online, Microsoft Dynamics NAV, Microsoft Dynamics SL, Office 365, Linkedin

Microsoft HCM and Cloud HCM Applications Revenues, $M:

Type/Year20222023YoY Growth, %
Total Revenues, $M Subscribe Subscribe Subscribe
HCM Applications Revenues, $M Subscribe Subscribe Subscribe

* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.

Microsoft Revenue Breakdown by Type:

TypeLicenseServicesHardwareS&MSaaSPaaSIaaSOtherTotal
% of Total Revenues Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe 100%
Revenues, $M Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe Subscribe

Microsoft Total and HCM Applications Revenues by Region:

Region% of Total Revenues2023 Total Revenues, $M2023 HCM Applications Revenues, $M
Americas Subscribe Subscribe Subscribe
EMEA Subscribe Subscribe Subscribe
APAC Subscribe Subscribe Subscribe
Total Subscribe Subscribe Subscribe

Microsoft Direct vs Indirect sales

RegionDirect SalesIndirect SalesTotal
Type % Subscribe Subscribe Subscribe
Revenues, $M Subscribe Subscribe Subscribe

Microsoft Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified Microsoft Customers


No. of Microsoft Customers: 250000

No. of Microsoft HCM Applications Customers: 700000

No. of Microsoft Cloud HCM Customers: x

No. of Microsoft Cloud HCM Subscribers: 120 million


Dynamics 365 Business Central boasts a customer base of over 15,000 organizations. This figure does not encompass the multitude of Dynamics NAV customers, totaling 175,000, leveraging its Software as a Service (SaaS) platform. Notably, the platform is experiencing a remarkable annual user growth rate of 200 percent.

Microsoft Dynamics 365 Finance, Supply Chain Management and Commerce has 4500 customers, while Microsoft Dynamics AX - 24000 customers, Microsoft Dynamics SL - 13500 customers, Microsoft Dynamics GP has 51000 customers.

Revenue from Office Commercial products and cloud services experienced a 10% increase, primarily propelled by a 13% growth in Office 365 Commercial. Furthermore, revenue from Dynamics products and cloud services saw a notable 16% increase, primarily attributed to a 24% growth in Dynamics 365 for the fiscal year 2023.

Furthermore, Microsoft now boasts 53,000 Azure AI customers, with over one-third joining Azure in the past 12 months, indicating continued momentum and adoption of its cloud services.

Microsoft Market Opportunities, M&A and Geo Expansions

In the second quarter of fiscal year 2024, Microsoft demonstrated strong financial performance, with a notable 33% increase in net profit, reaching $21.9 billion compared to $16.4 billion in the corresponding quarter last year. Additionally, the company's revenue experienced significant growth, climbing 18% to $62 billion from $52.7 billion in the year-ago period. The driving force behind Microsoft's performance was the substantial growth in its cloud revenue, which reached $33.7 billion, marking a 24% increase year over year. This exceptional outcome was attributed to the strong execution by Microsoft’s sales teams and partners. Important metrics derived from the income statement indicate that the Productivity and Business Processes segment generated $19.2 billion, reflecting a 13% increase, while the Intelligent Cloud segment witnessed a 20% rise to $25.9 billion. The More Personal Computing segment, strengthened by the Activision acquisition, reported $16.9 billion, marking a 19% increase.

Furthermore, Microsoft now boasts 53,000 Azure AI customers, with over one-third joining Azure in the past 12 months, indicating continued momentum and adoption of its cloud services.

Microsoft Risks and Challenges

The merger between Microsoft and Activision Blizzard has reverberated throughout the gaming industry since its inception. Given the magnitude of the agreement, regulatory bodies worldwide expressed concerns about its potential to stifle competition and consolidate excessive influence for Microsoft, particularly given its ownership of Xbox. Microsoft's continued acquisition of prominent game companies has further solidified its dominance in the market, amplifying discussions about potential monopolistic practices following the integration of Activision Blizzard into its portfolio.

Acquisitions and other strategic transactions entail notable challenges and risks. These include the possibility of not aligning with the company's overarching business strategy, achieving an unsatisfactory return on investment, encountering new compliance-related obligations, grappling with integration and retention issues concerning employees, business systems, and technology, diverting management attention from existing operations, and facing the potential non-completion of announced transactions.

Microsoft Ecosystem, Partners, Resellers and SI

In June 2023, Microsoft forged a strategic partnership with Moody’s Corporation to deliver advanced data, analytics, research, collaboration, and risk solutions for the financial services industry and global knowledge workers. Leveraging Moody’s robust data and analytical capabilities alongside the scale and power of Microsoft Azure OpenAI Service, this collaboration aims to create innovative offerings that enhance insights into corporate intelligence and risk assessment. Anchored by Moody’s proprietary data, analytics, and research, these solutions are empowered by Microsoft AI technologies. Furthermore, Microsoft and Moody’s will explore opportunities to deliver data to mutual customers through Microsoft Fabric, a new analytics platform designed for end-to-end data management.

Microsoft collaborates closely with its vast ecosystem of 640,000 Microsoft Partner Network partners, which includes numerous partners specializing in Office apps and business tools such as SQL Server. The distribution of Microsoft Dynamics software solutions is facilitated through a global network of resellers, managed service providers, and Independent Software Vendor (ISV) partners. These partners develop and market vertical solutions and specialized services tailored to enterprise needs.

Within this ecosystem, there are approximately 10,000 Microsoft Dynamics partners, including 2,000 Customer Relationship Management (CRM) Value-Added Resellers (VARs), 100 ISV partners, and numerous hosting partners operating in 85 countries worldwide. To support Microsoft Dynamics 365 in Southeast Asia, a network of global consultants and system integrators, including Avanade, HP Enterprise Services, Hitachi, Logica, Ciber, Infosys, and HCL, provide expertise and implementation support.

Microsoft Cloud Platform (PaaS) and Infrastructure (IaaS) Details

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Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.


Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).


For additional information on our methodologies, here's the link:

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Buyer Intent: Companies Reading this Research Report
ARTW Buyer Intent uncovers actionable customer signals, identifying software buyers actively reading this research report. Gain ongoing access to real-time prospects and uncover hidden opportunities. Companies Actively accessing this research report include:
  1. Charles Schwab, a United States based Banking and Financial Services organization with 32100 Employees
  2. UNLEASH, a United Kingdom based Media company with 70 Employees
  3. Taiwan Semiconductor, a Taiwan based Manufacturing organization with 65152 Employees
LogoCompanyIndustryEmployeesRevenueCountryEvaluated
Charles SchwabBanking and Financial Services32100$18.8BUnited States2025-01-22
SubscribeSubscribeMedia70$7MUnited Kingdom2025-01-15
SubscribeSubscribeManufacturing65152$74.8BTaiwan2024-12-27
SubscribeSubscribeProfessional Services64000$19.2BUnited States2024-11-22
SubscribeSubscribeProfessional Services27900$18.9BUnited States2024-11-20
SubscribeSubscribeConstruction and Real Estate10$1MUnited States2024-10-30
SubscribeSubscribeProfessional Services4128$1.2BUnited States2024-09-05
SubscribeSubscribeProfessional Services300$58MUnited States2024-08-28
SubscribeSubscribeProfessional Services1137$211MUnited States2024-08-01
SubscribeSubscribeLeisure and Hospitality1837$262MUnited Kingdom2024-07-24
SubscribeSubscribeProfessional Services30$5MUnited States2024-06-19
SubscribeSubscribeProfessional Services10$1MBelgium2024-06-11
SubscribeSubscribeManufacturing750$120MBelgium2024-05-28