Here's a Look at How Microsoft Makes Its Money in the Post-PC Era

Hint: it's in the cloud

Microsoft had to absorb a $7.5 billion loss because its plan to buy Nokia and then grab a bigger share of mobile devices mostly failed. The Redmond, Wash.-based company has a 3 percent share in the smartphone market, and its Surface device has only seen modest sales, $888 million last quarter.

As Microsoft's earnings showed on Tuesday, it has struggled to stay relevant in the consumer space that has gone almost fully mobile. The brand has lost much of that personal computing domination, even though its is still a force, especially with Windows 10 about to come online and available to maybe a billion people.

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