Mark Moerdler: Extremely helpful. Thank you so much.
Brett Iversen: Thanks, Mark. Joe, next question, please.
Operator: Your next question comes from the line of Brent Thill with Jefferies. Please proceed.
Brent Thill: Thanks, Amy. Good to see the 12% growth. Many investors are asking, can you sustain double-digit growth, especially with a stronger AI boost coming in the next several quarters?
Amy Hood: I think looking at our — as I said, Q1 was a strong start to the year, Q2 certainly implies that. We’ve talked about stability for Azure into the second half of the year looking at and in line with what we’re seeing for Q2. And so I think we feel good about our ability to execute, but more importantly, our ability to continue to take share.
Brett Iversen: Thanks, Brent. Joe, next question, please.
Operator: The next question comes from the line of Raimo Lenschow with Barclays. Please proceed.
Raimo Lenschow: Hey. Thank you. You sound very optimistic about the opportunity in the office space with Copilot coming out now very soon. Can you speak a little bit about — what you’re seeing in the customer base that tested this already in terms of how excited they were — the special features there, and what does it mean in terms of adoption curve for that going forward once you go GA on 1st of November? Thank you.
Satya Nadella: No. Thanks. The question, Ramo, the good news is two-fold, one is the fact that, what is 40% of the Fortune 100 are already in the preview and are using the product and I think you all have also done lots of checks and the feedback is very, very positive. And, in fact, the interesting thing is, it’s not any one tool, right? Which is the feedback even sort of is very clear that it’s the all up. You just keep hitting the Copilot button across every surface, right, whether it’s in Word to create documents, in Excel to, do analysis, or PowerPoint or Outlook or Teams just like that. Clearly, the Teams meeting, which is an intelligent recap, it’s not just a dumb transcript. It’s like having a knowledge base of all your meetings that you can query and add to essentially the knowledge terms of your enterprise.
And so we are seeing broad usage across and the interesting thing is, by different functions, whether it’s in finance or in sales by roles, we are seeing productivity gains like we saw with developers and GitHub Copilot. So that’s the data. We are very excited about our Ignite conference, where we will talk a lot more about all of the use cases and what’s — where’s the value and give more prescriptive guidance on how people can deploy. But so far so good, as far as the data is and the feedback is. And of course, this is an enterprise product, I mean, at the end of the day, we are grounded on enterprise cycle times in terms of adoption and ramp, and it’s incrementally priced, so, therefore that all will apply still. But at least for something completely new to have this level of usage already and this level of excitement is something we’re very, very pleased with.
Raimo Lenschow: Thank you.
Brett Iversen: Thanks, Raimo. Joe, next question, please.
Operator: The next question comes from the line of Karl Keirstead with UBS. Please proceed.
Karl Keirstead: Okay. Great. Thanks, Amy. Congrats on the 28% constant currency Azure growth, that’s terrific. I wanted to press you a little bit on the outlook for Azure. You’re obviously guiding to a 1 to 2 point decel in December and then stable thereafter. But why would it be stable? Why wouldn’t it accelerate in the — in the second half of your fiscal year, if the AI contribution is increasing as you bring on more GPU capacity? Is this a function of perhaps continued Core ex-AI Azure spend optimization, continuing or maybe even getting slightly worse? Why couldn’t we see some upside in that Azure number? I know you’re trying to be conservative, but I’d just love to understand it? Thanks so much.
Amy Hood: Thanks, Karl. A couple of things. As I talked about Q2 and then into H2. We’ve been very consistent that the optimization trends have been consistent for us through a couple of quarters now. Customers are going to continue to do that. It’s an important part of running workloads that is not new. There obviously were some quarters where it was more accelerated, but that is a pattern that is and has been a fundamental part of having customers, both make new room for new workload adoption and continue to build new capabilities. And so I think that impact remains through the rest of the year, and my view is unchanged on that. And then of course, I think the key component has always been new workload starts. And at the scale we’re talking about, being able to have stability in our Azure business, does mean that we will have a lot of new workload starts.
And primarily we’re expecting those to come from AI workloads. But AI workloads don’t just use our AI services. They use data services and they use other things. And so that combination, I think, looking on a competitive basis, we feel good about our execution, we feel good about taking share and we feel good about consistent trends. And so I feel good about that guide and what it says about where we are on share.
Karl Keirstead: Okay. Terrific. Thanks.
Brett Iversen: Thanks, Karl. Joe, next question, please.
Operator: The next question comes from the line of Brad Sills with Bank of America. Please proceed.
Bradley Sills: Wonderful. Thanks so much. Very impressive to see the Office 365 commercial seat growth hanging in here in that double digit range. It’s very impressive just given the scale of that business. We think of Office as having such a dominant market position. Curious, how you think about the — where that seat is coming from and how many more of those seats are out there to go get?
