San Francisco, Jan 31 (IANS): Riding on stupendous growth in its commercial Cloud services, Microsoft logged a revenue of $32.5 billion -- up 12 per cent from a year ago -- and a net income of $8.4 billion for the quarter ending on December 31.

The commercial Cloud business registered $9 billion in sales for the quarter, for a $36 billion annual run rate.

"Our strong commercial Cloud results reflect our deep and growing partnerships with leading companies in every industry including retail, financial services, and healthcare," said Microsoft CEO Satya Nadella.

"We are delivering differentiated value across the cloud and edge as we work to earn customer trust every day."

The revenue from Surface laptops increased 39 per cent. The company released Surface Pro 6 and Surface Laptop 2 during the quarter, along with Surface Studio 2 and Surface Headphones.

Revenue in personal computing was $13 billion and Surface is now almost a $2 billion business for Microsoft.

"Our solid execution delivered another strong quarter, with commercial cloud revenue growing 48 per cent year-over-year to $9 billion," said Amy Hood, Executive Vice President and Chief Financial Officer of Microsoft.

The revenue in productivity and business Processes was $10.1 billion and increased 13 per cent.

"Office Commercial products and cloud services revenue increased 11 per cent, driven by Office 365 Commercial revenue growth of 34 per cent," said the company.

Office 365 consumer subscriber base has now hit 33.3 million.

Gaming revenue increased 8 per cent, with Xbox software and services revenue growth of 31 per cent.

LinkedIn revenue increased 29 per cent while Dynamics products and Cloud services revenue increased 17 per cent, driven by Dynamics 365 revenue growth of 51 per cent.