morepaul allen in sydney, is coming up next. ♪ emily: this is "bloomberg technology," i am emily changt topped estimates. adjusted sales rose 9%, demand azure cloud services nearly doubling. the efforts to turn the company into a cloud computing juggernaut are paying off. the microsoft earnings call is underway right now. offer is your take on the high-end results when it comes to the cloud. >> a very strong results from microsoft. it is tough to find any holes in it at this point. the key would be the call to learn what the future estimates 2018, especially on the expensive side. there has been an area of discussion among investors that as we look at next year, what can be seen. emily: data centers are really expensive. >> microsoft did not worry about legacy products and invested heavily into the cloud business. their gross margins were around 80%. now they are hovering around 60% or so. a large portion is their product portfolio to the cloud. in your infancy you need to invest more. those are not as profitable. as time goes along, the growth margins should improve, which is what we