Revenue is not margin
Don't forget they are talking revenue here, not margin.
The margin on 'shrink-wrap' on premise was over 90%, in this cloud business they be lucky to make 3% if they're not losing money already.
They're up against Amazon, notorious for their loss leaders and wafer thin margins.
Even if they make their 'revenue' targets, MS will never again make the profits that they were used to. And rightly so, no more monopoly rents.
As their mobile endeavours show, they cannot compete on a level playing field. Trying to stay relevant is the game now.
It's great to watch.