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Microsoft's cloud business is booming

Microsoft's latest operating system, Windows 10, failed to spark a quick revival in sales for the American software giant in the quarter ending on September 30, but the company still reported impressive results thanks to the performance in some segments its CEO calls key for the company's future.

According to an AP report (opens in new tab), some of Microsoft's segments reported a decline in sales, including licensing payments from PC makers, which were down 6 per cent. According to the report, this is a sign that the July launch of Microsoft's Windows 10 operating system failed to jumpstart the sales.

The recent decision to pare back its struggling Nokia division meant Microsoft made less money from selling mobile phones, as well.

However, the company’s cloud business is booming, which is a great sign knowing that CEO Satya Nadella sees it as the future of business. That included a 70 per cent increase in revenue from commercial cloud computing, as well as a “hefty” increase in the number of people paying for the Xbox Live online gaming service and for Office 365.

Bing has also shown profit for the first time, as its advertising revenue grew to more than $1 billion (£650m) in the quarter.

Microsoft said it had $20.4 billion (£13.24bn) in revenue for the quarter ending September 30, down 12 per cent from a year earlier. Net income rose 1.7 per cent to $4.6 billion (£2.98bn).

It seems as Microsoft is heading towards where it wants to be, and was awarded for its good job by the investors, which drove the company's stock price up more than 8 per cent in late trading Thursday.

Sead Fadilpašić
Sead Fadilpašić

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.