Microsoft bosses praised the company's cloud business as it reported better-than-expected quarterly results last night.
The technology giant's revenue was $24.7 billion for the past three months, up on the $24.3 billion predicted by analysts.
The Windows maker's net income for the last quarter was $7.7 billion dollars.
Chief Executive Satya Nadella said: "Innovation across our cloud platforms drove strong results this quarter.
"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."
According to the results, revenue from Office 365, the cloud-based version of Office that enables users to access Word, Excel and PowerPoint anywhere, rose 13% in the past three months.
The number of subscribers to Office 365 rose to 27m as it reinforced its position as one of the firm's most popular products.
Microsoft's gaming arm Xbox also reported an increase in revenue, up 3% on the previous quarter.
Its next generation games console, the Xbox One X, is due to launch later this year.
However, the firm's main hardware product, the tablet-laptop hybrid Surface, saw a revenue drop of 3% on the last quarter.
The tech giant's chief financial officer Amy Hood said: "We delivered a strong finish to the year with 30% growth in commercial bookings this quarter.
"We will continue to invest in key areas that drive future growth for Microsoft and our customers."