Microsoft Online Services Hemorrhaging Cash, Microsoft Committed

While Microsoft’s revenue and profits have been fantastic these past fiscal quarters thanks mostly to Windows 7, their Online Services section has been burning through cash. This time Online Services reported a $560 million loss, with the same quarter from last year having a $477 million loss. Basically, Microsoft is willing to pump out the cash in order to stay competitive against Google and other cloud-giants.

Some signs in Microsoft’s online world are positive. In an Oct. 28 earnings call, executives reported a 13 percent increase in online advertising, and Bing continues to claim market share in the search arena.

Comments