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Microsoft Results: Cloudy With A Chance Of Meatballs

Microsoft posted its results for the quarter ended September 30th, with both revenue and income up year on year. The company credited improved cloud services performance for the improvement, although there are some questions raised about that particular claim.

Both the increase in revenue and profit seem to come entirely from an improvement in the deferred earnings from Windows 10. That $600m improvement in revenue and $540m improvement in income are reflected in the $674m revenue and $328m income (non-GAAP) figures.

So what has the rest of the business actually been doing? How do these numbers reflect the questions Steve Ballmer has raised about measuring the true impact of cloud services on the business?

Despite seeing falling revenue, the More Personal Computing still made up around 45% of all Microsoft's revenue. That division includes Xbox, Phone, Surface and Windows amongst others. 

Microsoft's move to the cloud seems to be progressing well, but as revenues fall from its traditional business lines it still remains to be seen whether it can maintain revenue and profitability through its transition.