PC sales are not what they used to be, and the once-almighty Windows appears to be on the decline, but Microsoft (NASDAQ: MSFT) managed to report a record fourth quarter revenue of $17.37 billion last week. At the same time, the company said it pulled in record-breaking yearly revenue of $69.94 billion. With those kinds of numbers, the software maker looks to me like it's going to be around awhile despite much naysaying from critics. Here are a few other perspectives on Microsoft's prospects.

Three-headed cash cow: ZDNet's Microsoft expert Mary Jo Foley notes that while Windows and Office sales have historically fuelled the software maker's growth, the company appears to be successfully diversifying, as its Server and Tools unit brought in $6.6 billion in operating income. "Server and Tools is where the future Microsoft cloud action is centered. And it's home to several of Microsoft's current $1 billion+ businesses," Foley writes.

SharePoint and rising shares: Office continues to perform very well even though there are many cheaper--or free--alternatives available, writes Tim Anderson on his blog. "Why is everyone buying Office 2010, when a document like the one I am typing now could be done just as well in Word 2.0 from 1991, or more plausibly the free OpenOffice?" he asks. "The answer is [that] Microsoft has successfully transitioned many of its customers to using Office with SharePoint and Exchange, making it harder to stick with old versions and selling CALs (Client Access Licences) as well as the Office suite itself.

Comparing Apples and Microsofts: Despite Microsoft's great earnings, many observers couldn't resist noting that Apple's (NASDAQ: AAPL) are even better. "It was overall a great year for Microsoft, with all divisions showing strong revenue numbers and all bar one showing significant growth," writes Peter Bright at Ars Technica. "Nonetheless, investors can't help but notice the way that Apple has enjoyed such explosive growth in both revenue and profit. Microsoft's gains have been quite modest in comparison. Apple's ability to aggressively enter and subsequently dominate the music player, phone, and now tablet markets has allowed it to enjoy revenue growth of 82 percent, year on year, and profit growth of 121.9 percent."

That's entertainment: Microsoft credited its Entertainment and Devices division for much of its recent success, having sold 13.7 million Xbox 360s over the year. It did not mention how well Windows Phone--one of the division's other products--did, however. "Kinect kept the Xbox 360 growing and helped the business break $1 billion in operating profit during the fiscal year. Its sales over the year grew 45 percent, including a 30 percent gain last quarter," writes Brier Dudley at The Seattle Times. "When asked about how the Nokia deal and upcoming "Mango" version of the phone software will affect sales [of Windows Phone], Microsoft totally dodged the question and pointed back to the Xbox growth."

Online sinkhole: For the fiscal year just completed, Microsoft's Online Services Division lost $2.56 billion, which is even more than it lost in FY 2010, notes ZDNet's Larry Dignan, who provides a timeline of the online business's losses over the last nine years. "For the second year in a row, Microsoft's online operating losses were larger than the annual revenue brought in via Bing and the gang," he writes.

- Caron