Google and Microsoft are both benefiting from solid growth in enterprise cloud services. Both companies released earnings reports this week that highlighted significant momentum in G Suite, Office Suite, respectively, and more sophisticated cloud platforms for business.\n\u201cWe crossed a major milestone with more than 100 million monthly active users of Office 365 commercial,\u201d Microsoft CEO Satya Nadella said during a conference call. \u201cOffice 365 commercial seats grew 35 percent year-over-year and revenue is up 45 percent.\u201d Microsoft also reported a 15 percent year-over-year gain in revenue from Office 365 and other consumer products. The company ended the quarter with 26.2 million Office 365 consumer subscribers.\nAlphabet, the parent company of Google, declined to disclose revenue from Google Cloud, but CFO Ruth Porat described the business as a major growth engine and \u201cone of the fastest-growing businesses across Alphabet,\u201d during the earnings call.\nGoogle Cloud growing faster than ad business\nGoogle CEO Sundar Pichai said Google Cloud also represented the largest growth in headcount and capital expense during the quarter. \u201cPeople sense our commitment to the area. They understand the pace at which we are investing, they see that we are committed to machine learning and [artificial intelligence] at a deep level,\u201d he said during the call. \u201cI think there is a very strong recognition that we have pivoted to being a deep enterprise company, and our conversations are very strategic. We are engaging at the highest levels within companies\u2026 I can see a qualitative lead and momentum there.\u201d\n[ Related: G Suite vs. Office 365 cloud collaboration battle heats up ]\nGoogle Cloud revenue is grouped with hardware, Google Play and \u201cother\u201d businesses, so it\u2019s not clear how much Google\u2019s cloud business contributed to the segment\u2019s $3.1 billion in sales during the quarter. Revenue from the \u201cother\u201d segment grew faster than Google\u2019s ad business ( jumping 19 percent year-over-year ) but it still pales in comparison to the $21.4 billion Google banked on ads during the quarter.\nGoogle Cloud\u2019s reorganization under senior vice president Diane Greene has also impacted how Google pursues opportunities in enterprise. \u201cThe heavy lifting, I would say, is around how we meet enterprises in the market,\u201d Pichai said. \u201cWe have reorganized so we have one face to the customers\u201d with specialists who can help IT professionals solve difficult tech challenges or implement machine learning to improve efficiency and business outcomes, he said. \u201cWhen a customer signs up for Google Cloud, they get more than [Google Cloud Platform] and G Suite. They have access to the ads and analytics teams, YouTube teams, and resources within our organization.\u201d\nMicrosoft benefits from hybrid deployments\nMeanwhile, Microsoft continued to leverage its massive installed base of Office users and the shift to transform businesses around cloud-based infrastructure. \u201cWe do have a huge on-premises base,\u201d Nadella told investors. \u201cThere is still a need for those on-premises products. That will continue, but our focus is on transitioning to the cloud. And you\u2019ve seen us do this successfully with Office 365.\u201d\nRevenue from Microsoft\u2019s Intelligent Cloud segment, which includes Azure, increased 11 percent year-over-year to $6.8 billion. The Productivity and Business Processes segment, which includes Office, Dynamics and LinkedIn, climbed 22 percent from a year prior to $7.96 billion. Microsoft\u2019s entire commercial cloud portfolio, which also includes Azure, Office 365, Dynamics as well as other cloud-based services tailored for enterprises, reported a 52 percent year-over-year increase in its annualized revenue run rate to $15.2 billion.\n[ Related: Trying to make sense of Google\u2019s messaging mess ]\nGoogle is also capitalizing on the digital transformation trend, albeit at a much smaller scale than Microsoft \u201cIncreasingly, we are being asked to partner for mission-critical projects and full migrations, moving data from on-premises data centers to the cloud,\u201d Pichai said. \u201cWe are seeing a meaningful shift, and this momentum is resulting in a fast-growing business.\u201d\nCloud-based infrastructure, or infrastructure as a service (IaaS), is one of the fastest growing segments in the global cloud market, and is projected to grow 36.8 percent to $34.6 billion in 2017, according to research firm Gartner. Cloud application services, or Software as a Service (SaaS), is projected to jump 20.1 percent to $46.3 billion this year.