Microsoft rides high on cloud services

Microsoft revealed a 5% rise in annual revenue from cloud services as the software giant continues to mitigate its reliance on earnings from personal computing software.

The company bagged $6.3bn (£4.45bn) from cloud and mobile applications for the three months to 31 December 2015. However, total revenue slipped 10.1% to $23.8bn as a stronger dollar and falling PC sales took their toll.

Revenue from personal computing, which includes its MS Windows business, fell 5% in the quarter to $12.7bn. Headline profits for the period came in 15% lower on annualised basis to $5bn.

The company's performance was in line with market expectations. Microsoft chief executive Satya Nadella said: "The enterprise cloud opportunity is massive - larger than any market we have ever participated in."

Nadella added that Microsoft's combined cloud business, which includes other divisions such as Office 365, was on track for $9.4bn in annual revenue; higher than its previous forecast of $8.2bn.