>"By Kati Hvidtfeldt, Principal Program Manager, Microsoft Dynamics NAV, and former US Microsoft Dynamics ERP Cloud Lead
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>The cloud is more important than ever before. Despite initial resistance, the cloud business in Microsoft Dynamics ERP has grown exponentially. From non-existence we’ve moved to strong performance, with more than 120 active US partners and 60% CAGR on revenue over the four years since we started. "
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>Is 60% annual growth exponential?
>I guess it is if the exponent is less than one.
>If that's the case, isn't all growth exponential?

"Exponential growth" is often used as "very fast", but technically, it refers to any curve that can be fit to a function of the type A * exp(Bt) for constants A and B, or equivalently, A * C^t for constants A and C. In less technical terms, if the ratio between two consecutive time periods is always the same (or at least similar). 60% growth means a increase by a factor 1.6. If that continues every year for several years, you do indeed get an impressive size (after a few years of course). An "exponential curve" can also go down, if the base ("C" in the second model equation above) is less than one. For example, the amount of material left in a radioactive decay.