Microsoft’s big task: Replicating Windows-Office success in cloud

Gigaom

Microsoft turned in pretty good second quarter results on Monday, but its stock still took a hit after hours and into Tuesday. At time of posting, Microsoft shares were off 8.6 percent to $42.97 from Monday’s close of $47.01.

Why? After the earnings call, [company]Microsoft[/company] watchers seemed to remember that the company cash cows remain good old-fashioned Office and Windows, sales of which aren’t setting the world on fire. Sales in the company’s Commercial Division, which includes those products, missed expectations, logging “just” $10.68 billion for the quarter compared to the $10.94 billion that FactSet analysts had expected, according to Marketwatch.

Another data point: Revenue for Windows OEM versions of the operating system — which get pre-loaded on new PCs  — fell 13 percent year over year. And Windows Volume licensing revenue grew just 3 percent, as CRN pointed out.

Monday’s call was characterized as the end of the honeymoon for Microsoft CEO Satya Nadella…

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