Microsoft reports weak results despite turnaround effort
On Monday, IBM reported its 16th consecutive quarter of revenue decline, as commercial customers abandon the once-standard model of buying programs to install on their own computers, and instead use more software online.
A day later, Intel said it's cutting 12,000 jobs as fewer people buy PCs that run on Intel processors, opting instead for mobile devices such as smartphones and tablets.
While sales of personal computers have been sliding for the past four years, Nadella has been working to make Microsoft less dependent on revenue from its flagship Windows operating system, used mostly on PCs.
In particular, Microsoft saw only a 3 percent increase in revenue from its "Intelligent Cloud" business, where the company has invested heavily to help business customers run their operations on Microsoft's servers.
The company hopes to make money by charging users for extra features, and for related services like Skype messaging and online file storage.
[...] because Microsoft delivers regular updates over the Internet, analysts say that should help the company sell extra features, particularly to business users.