10 Illuminating Points From Microsoft's Q1 Earnings

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Microsoft's Cloud Services Foray In China

In the Q&A, Hood was asked to comment on the state of Microsoft's cloud business outside the U.S.

By way of response, Hood said it's important to note that Microsoft was the first cloud player to start up a data center in China, which it uses to deliver Office 365 and Windows Azure to customers.

Given the previous business struggles Microsoft has encountered in China, and the shaky macroeconomic conditions there, that was a bit of a risk, Hood said. But, it's one that Microsoft expects to pay off.

Microsoft's cloud foray in China "provides interesting opportunity for us to begin monetizing end markets that have been harder for us to grow, maybe with our more traditional business model," Hood said, according to Seeking Alpha's transcript of the earnings call.


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