The 'popularity' of Microsoft's Azure cloud - and Office 365 - have helped Microsoft to offset declining sales of Surface tablets in its freshly reported fourth quarter for the three months to the end of June 2017.
Microsoft posted revenues of $23.3bn (around £17.9bn) a 13 per cent increase over last year, and it doubled its net income to $6.5bn.
Microsoft's cloud division was credited for the bumper quarter, with the company's Intelligent Cloud posting revenues of $7.4bn, an 11 per cent increase year-on-year. Within Intelligent Cloud, Microsoft boasted that server products and cloud services revenue increased 15 per cent, driven by Azure revenue growth of 97 per cent.
"Innovation across our cloud platforms drove strong results this quarter," said Microsoft CEO Satya Nadella.
He continued: "Customers are looking to Microsoft and our thriving partner ecosystem to accelerate their own digital transformations and to unlock new opportunity in this era of intelligent cloud and intelligent edge."
The company also boasted of a 43 per cent increase in Office commercial revenue thanks to soaring Office 365 subscriptions, while the firm's Productivity and Business Processes group saw revenue grow by 21 per cent to $8.45bn, with LinkedIn contributing more than $1bn in revenue for the first time.
Gaming revenue was also up 3 per cent in the fourth quarter, which Microsoft has credited to sales of Xbox software and services that offset lower hardware revenue.
Elsewhere, thing's were more challenging. Microsoft's Surface revenue slumped two per cent to $948m in the fourth quarter, which the company attributed to "product lifecycle transitions".
However, this is an improvement on the last quarter when Surface revenues dived by 26 per cent, and Microsoft has pointed out that its new Surface Laptop and Surface Pro have only been available since mid-June.
Unsurprisingly, Microsoft's largely-defunct Windows Phone division didn't do much to prop up its fourth quarter earnings. In a note during its earnings report, Microsoft described the business as "immaterial", noting that it had declined to $361m in revenue from a year ago.
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