In our consumer business, PC market demand further deteriorated in September, which impacted our Windows OEM and Surface businesses. And reductions in customer advertising spend, which also weakened later in the quarter, impacted search and news advertising and LinkedIn Marketing Solutions. As you heard from Satya, in our commercial business, we saw strong overall demand for our Microsoft cloud offerings with a growth of 31% in constant currency as well as share gains across many businesses. Commercial bookings declined 3% and increased 16% in constant currency on a flat expiry base.
The remaining portion, which we recognized beyond the next 12 months, increased 38% year over year, and our annuity mix increased one point year over year to 96%. FX impacted company results in line with expectations. With the stronger US dollar, FX decreased total company revenue by five points, and at the segment level, FX decreased productivity and business processes and intelligent cloud revenue growth by six points and more personal computing revenue growth by three points. Additionally, FX decreased COGS and operating expense growth by three points.
Azure and other cloud services revenue grew 35% and 42% in constant currency, about one point lower than expected, driven by the continued moderation in Azure consumption growth, as we help customers optimize current workloads while they prioritize new workloads. In our per-user business, the enterprise mobility and security installed base grew 18% to over 232 million seats, with continued impact from the new deal moderation noted earlier. In our on-premises server business, revenue was flat, and increased 4% in constant currency, slightly ahead of expectations, driven by hybrid demand, including better-than-expected annuity purchasing ahead of the SQL Server 2022 launch. Enterprise services revenue grew 5% and 10% in constant currency, driven by enterprise support services.
My commentary, for both the full year and next quarter, does not include any impact from AC division, which we still expect to close by the end of the fiscal year. First, FX. With the stronger US dollar and based on current rates, we now expect FX to decrease total revenue growth by approximately five points and to decrease total COGS and operating expense growth by approximately three points. Within the segments, we anticipate roughly seven points of negative FX impact on revenue growth in productivity and business processes, six points in Intelligent cloud and three points in more personal computing.
In capital expenditures, we expect a sequential increase on a dollar basis with normal quarterly spend variability in the timing of our cloud infrastructure build-out. Next, to segment guidance. In productivity and business processes, we expect revenue to grow between 11% and 13% in constant currency or USD16.6 billion to USD 16.9 billion. In Office Commercial, revenue growth will again be driven by Office 365, with seat growth across customer segments and ARPU growth from E5.
With the high margins in our Windows OEM business and the cyclical nature of the PC market, we take a long-term approach to investing in our core strategic growth areas and maintain these investment levels regardless of PC market conditions. Therefore, with our first quarter results and lower expected OEM revenue for the remainder of the year as well as over $800 million of greater-than-expected energy cost, we now expect operating margins in US dollars to be down roughly a point year over year. On a constant currency basis, excluding the incremental impact of the lower Windows OEM revenue and the favorable impact of the latest accounting change, we continue to expect FY 2023 operating margins to be roughly flat year over year. In closing, in this environment, it is more critical than ever to continue to invest in our strategic growth markets such as cloud, security, Teams, Dynamics 365, and LinkedIn where we have opportunities to continue to gain share as we provide problem-solving innovations to our customers.
They are still coming from governments or financial institutions, manufacturing, logistics, some of the more traditional industries that are taking up what we traditionally call wholesale colocation. But the bulk of that segment, because of the growth and the size dominated by hyperscale, cloud players, we decided to just do a rename to call it hyperscale colocation market instead of wholesale. So that was the thinking behind that.
And so we continue to see the flat markets, like you mentioned, still continue to exhibit really strong growth. So we've seen really a lot of expansions coming online, increased pipeline for new builds in markets like London, Paris and Amsterdam, which I'm working on a report as of now, and Frankfurt as well, has seen a lot of M&A and expansion activity, and also big signings. So I think Iron Mountain signed a 27-megawatt lease with a hyperscale cloud in 2020.
First, private equity tends to avoid the most hyped tech segments, investing instead in enterprise software companies that are more resilient in a downturn. Second, these companies have strong revenue growth and solid fundamentals because their customers are rapidly digitizing to stay competitive. Third, the sector has low levels of capital impairment because enterprise software is mission critical and the solutions are hard to dislodge once installed. Finally, the number of opportunities is growing. A wave of innovation around cloud and mobile technology has expanded the pipeline of PE-ready targets as companies mature out of the venture and growth stages of development. 2b1af7f3a8