Microsoft is also in the midst of a major corporate reorganization orchestrated by Ballmer and announced in July that it seeks to unify the company and make its different teams work more cohesively and collaboratively. That "One Microsoft" effort is supposed to make the company more agile and innovative.
As part of the restructuring, Microsoft dissolved its five business units -- the Business Division, which housed Office; Server & Tools, which included SQL Server and System Center; the Windows Division; Online Services, which included Bing; and Entertainment and Devices, whose main product was the Xbox console.
It replaced them with four engineering groups organized by function, around operating systems, applications, cloud computing and devices, and by centralized groups for marketing, business development, strategy and research, finance, human resources, legal and operations.
"I'm really pleased with our results this quarter. It was a great start to the fiscal year," Hood said.