Microsoft posted a robust end to its fiscal 2020, including strong revenues from its Azure cloud business. However, the pace of that cloud growth continues to slow, which has some keeping a closer eye on that trend.

Azure continues to be a significant driver for Microsoft. Its Intelligent Cloud business, which includes Azure public cloud, Windows Server, SQL Server, and GitHub, posted a 17% year-over-year increase in revenues to $13.4 billion for the quarter. That accounted for more than 35% of Microsoft’s $38 billion in total revenues for fiscal Q4.

Focusing in a bit tighter, Microsoft reported that Azure revenues increased 47% year over year. However, that rate of growth was less than the 61% increase posted for fiscal Q3, which is the stat that drew analyst concerns.

“While I am not yet concerned with the declining Azure numbers as the revenue base is growing, it's something to keep our eyes on,” wrote Patrick Moorhead, president of Moor Insights and Strategy, in a comment on Microsoft’s latest results.

BMO Capital Markets Analyst Keith Bachman also expressed some concern on the Azure growth rate, which he noted was “at the low end of investor expectations.” But, he added that “we look at the current challenges as more transitory and we think [Microsoft] is very well positioned for the long term.”

Microsoft’s management played up the continued growth of its cloud business. CFO Amy Hood told investment analysts on its earnings call that Microsoft closed a record number of multi-million-dollar commercial cloud deals during the quarter, including “material growth in the number of $10-million-plus Azure contracts.”

And CEO Satya Nadella highlighted recent Microsoft updates to its cloud platform and acquisitions that further bolster its cloud stack.

Those updates include the preview launch of its Azure Arc-enabled Kubernetes system that allows users to manage Kubernetes clusters across different infrastructure environments. The platform is Microsoft’s entry into the increasingly competitive hybrid-cloud management space, which includes Amazon Web Services’ (AWS) Outposts and Google’s Anthos.

While its acquisition strategy has included data modeling firm ADRM Software, IoT security startup CyberX, and virtualized network software provider Metaswitch Networks.

“So, each layer is architected such that it reinforces the other and we see increasing adoption including, all of these layers,” Nadella said.

The real test for Microsoft’s cloud results will become clearer in the coming days as its hyperscale rivals Amazon Web Services (AWS) and Google announce their latest results.

In the meantime, investors were lukewarm to Microsoft’s latest results with the company’s stock trading down nearly 2% early Thursday. That was down significantly more than the broader market.

Microsoft did note highs and lows tied to the ongoing COVID-19 pandemic. The company reported increased demand for its cloud services tied to more people working remotely. But its transactional licensing business slowed and its LinkedIn social media platform was hit by the slowing job market and reduced advertising.

Looking further ahead, Microsoft said it expects its Intelligent Cloud business to post between $12.55 billion in $12.8 billion in revenues for its first fiscal quarter of 2021. Hood noted that for its Azure business, this will be driven by continued growth in its consumption-based services.