Commercial Other revenue increased $453 million or 31%, due to higher Cloud Services revenue and Enterprise Services revenue. Cloud Services revenue grew $367 million or 101%, due mainly to higher revenue from Commercial Office 365. Enterprise Services revenue grew $85 million or 8%, due mainly to growth in Premier Support Services and Microsoft Consulting Services.
Commercial Other gross margin increased $211 million or 80%, due to higher revenue, offset in part by a $242 million or 20% increase in cost of revenue. The increase in cost of revenue was due mainly to higher datacenter expenses, reflecting support of online infrastructure.