As COVID-19 has shifted people to work from home the demand for Microsoft cloud services and Teams software has increased.
Microsoft's profits were 30% higher than expected due to the increase in demand for cloud services and the sale of lucrative software such as Dynamics 365.
However, they have suggested that profit margins will come under more strain early next year as they invest more into expanding its cloud business. They are also predicting to experience falling demand for high-margin sales of Windows operating systems in computers.
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