Microsoft says (what else?) that its cloud biz is growing

Gigaom

Adoption of Microsoft’s cloud software is growing like gangbusters, at least according to Microsoft execs on the company’s second quarter earnings call. Seats of the key cloud products — Office 365, Windows Azure and Dynamics CRM — all rose 100 percent year over year, said CFO Amy Hood.

What’s less clear is how much of that growth comes from new customers versus users who are moving over from traditional Office and CRM products to their new SaaS incarnations. Of course, given the huge installed base of Office and Windows, it’s pretty hard to find these “net new users.” Microsoft is in the tough position of having to cannibalize its own Office and CRM user base before those users are wooed away to rival SaaS options like Google Apps or Salesforce.com.

Microsoft said revenue from those cloud products doubled year over year, although the total number is murky since the company…

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