Microsoft's bet on the cloud appears to be paying off

Conventional wisdom could make you think Microsoft is in trouble. The Washington giant built its empire on the back of the PC industry, but the past decade has seen that business dwindle, while smartphones and tablets eat at its place. And while Android and the iPhone boomed, Microsoft whiffed.

In recent years, though, Microsoft CEO Satya Nadella has helped make the company over, moving the company away from the shrinking segments it once relied on, and more toward the potentially lucrative profits of the cloud.

The company released its latest quarterly earnings report on Thursday, and right now, it looks like the shift is paying off. Its stock just hit an all-time high, and as this chart from Statista shows, its cloud businesses are showing the most strength. While Windows Phone dies a slow death, and Windows itself is stagnant, revenue from the company’s Azure — which businesses use to host sites and apps — and Office 365 platforms are way up.

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