This chart shows just how badly Microsoft’s Windows Phone business is doing

That measure, which includes Azure plus other businesses like Office 365, is up 15% from the US$8.2bil (RM33.97bil) revenue it estimated last quarter.

Microsoft has disclosed its financial results for the previous quarter, showing that the firm’s shift to cloud-based services is starting to pay off. Revenue from more traditional productivity tools was less impressive, however, and the personal computing platforms showed a slight dip.

Microsoft says Windows revenue from PC manufacturers is down 5% – beating the overall decline in the shrinking PC market, but still noteworthy.

Second-quarter adjusted revenue fell 2% year over year (up 3% in constant currency) to $25.7 billion, in line with our estimate, as Azure delivered triple-digit revenue gains.

Yesterday, Microsoft Corporation (NASDAQ:MSFT) reported its earnings for the last three months of 2015, i.e. its second fiscal quarter of 2016. Same goes for Office 365, which falls under the umbrella productivity category that drew $6.7 billion in revenue (a 2% decrease).

“Businesses are also piloting Windows 10, which will drive deployments beyond 200m active devices”.

Microsoft continued to see growth with is Surface products, as the segment is up 29% year-over-year. Windows Phone revenue fell 49 percent.

Amazon and its fast-growing Amazon Web Services business is a formidable opponent in cloud computing, though.

Otherwise, Nadella says he’s focused on offsetting the shrinking market by continuing Windows 10 itself more enterprise friendly with new security and compliance features, which will encourage more of the crucial business market to take the plunge and upgrade.

On the Windows side, revenue for the More Personal Computing division was down five percent, or two percent in constant currency, according to Microsoft. The number of consumer Office 365 subscribers, meanwhile, increased to 20.6 million.

According to thebroadband, Microsoft has told analysts to expect a similar drop in revenue in the coming quarter.

The goal is to get people using Microsoft’s latest products, no matter what kind of device they prefer, said Frank Gillett, a tech analyst with Forrester Research.

There was also good news for the company’s hugely popular games console, Xbox, with membership of its online platform Xbox Live rising by 30% to more than 48 million.

Microsoft’s idea to bring some of its best apps to iPhone, iPad and Android is paying off. In Thursday’s earnings call, CEO Satya Nadella revealed that mobile versions of Skype, Outlook, Word, Excel and Powerpoint have been downloaded millions of times.