Once you get beyond Azure you have things such as CRM online, you have Enterprise Mobility Suite and of course the Office 365 lineup and when you think about our capital and the core infrastructure, we don’t have different infrastructure for these different services. It’s one common infrastructure and one common data center footprint between all 365, Azure, CRM, Xbox Live, everything. That’s why utilization of that entire infrastructure is how we think about even total return on invested capital for our cloud business.
Chris: Thanks Phil. We’ll move on to the next question please.
Operator: Thank you. Our next question is from Heather Bellini with Goldman Sachs. Please proceed.
Heather: Great, thanks for taking the question. I just wanted to follow up Amy, your commercial other business continues to have fantastic growth and I’m just wondering when you juxtapose that with the growth in the commercial licensing business, I heard you in terms of the headwinds that you face but when you think about it more than one quarter out and you think about the revenue transition as you guys continue to build market share in the cloud, how do we think about the trends in the commercial licensing business in the next year or so?
Amy: I think in general, let me start by saying all up. In our commercial business we have done a very good job of continuing to outpace IT spend on an overall basis and continuing to push customers to our annuity business whether they are on premise or the cloud. That is our strategic goal as well as our impacts in both segments. Let me talk about some unique commercial licensing and how to think about it but I won’t give specific guidance. I will talk about how to think about the impact in particular from XP. Our transactional revenue will have a headwind from XP. That doesn’t and shouldn’t’ be interpreted as customers not continuing to be committed or not continuing to move to annuity over the longer term which is exactly the question that you’re asking. While we have a comparability issue that will show itself, mot directly as weakness in commercial licensing and most specifically as weakness in office transactional licensing which will be a headwind, the overall goal of continuing to have more customers every quarter move to the cloud or whether or not they move, adding cloud services even if they have on prem because they believe in a hybrid model is actually the structural sort of guide post we have of a mutli-year journey.
Chris: Thanks Heather. Operator we will move to the next question please.
Operator: Thank you. Our next question comes from Raimo Lenschow with Barclays. Please proceed.
Raimo : Thanks for taking my questions, two quick questions. I wanted to follow up on Phil Winslow’s question earlier on Azure and the use cases there. I mean in theory you have a huge opportunity given your install based on the server side. Can you talk a little about what you think the SMB customer base doing there? Are people trying out bursting or where is that huge customer base in terms of adoption on Azure?
Satya: One of the other elements that I actually did not talk about in response to Phil’s question is the hybrid offering. One of the products that’s doing very, very well for us is the store simple product which is essentially a storage product that cloud tiers virtualization storage from on premise to the cloud. We also have built now into the Windows servers backup and disaster recovery and the same thing with SQL server so that’s the first thing that we’re seeing is increased usage of our servers with a cloud component. Bursting is something for sure, a lot of people do but that’s more on the high end because in the SMB segment the real movement there is more to Office 365. In fact, one of the things in Office 365 is that we’re getting people to effectively use servers which just happens to be in cloud who never bought servers form us ever before because they didn’t have Exchange, they didn’t have Linked, they didn’t have any of the core capabilities of Office 365 so those are the 2 trends we’re seeing.
