The reason people are suspicious of O365 numbers is that they included both SaaS and traditional licencing in one convenient package.
Make no mistake, that's not a bad thing for Microsoft because they aren't losing customers to cloud and are slowly forcing customers to migrate.
But the need to include O365 on MS cloud revenue does say something about the state of the cloud market if three of the big 5 all play this trick and the only other player that doesn't uses AWS for hosting a significant amount of its infrastructure.
TL;DR: MS use O365 in cloud revenue to mask the fact AWS won the cloud race by a significant margin. Proof in a few more years when O365 and Azure are stagnant or decreasing.
Biting the hand that feeds IT
