Software giant, Microsoft has reported a 28 percent increase in revenues from the sale of its Windows OS in the third quarter compared to the same quarter last year.

The Windows 7 has been successful in the market attracting a lot of users. Windows 7 has emerged as the fastest selling Os in history as it already runs on about 10 per cent of all computers around the world.

The revenues for the firm increased 6 percent to $14.5 billion in the quarter while profits jumped 35 percent.

The company is however struggling in the upcoming mobile computing market which is dominated by Research in Motion's BlackBerry phones for enterprise customers and Apple's iPhone and Google Android-based devices for general users.

Microsoft has not been able to compete with rivals and Mobile 6. x platform is in the sate of decline. Microsoft recently scrapped its social media-oriented Kin device which already a late entrant into the market.

The company looks optimistic about its Windows Phone 7 software however it will be few months before users are able to buy any device.

Microsoft has remained strong in the PC software segment and is positioned to remain so despite competition from open source software vendors like Linux. Google is upping the competition with its mobile operating systems--Android or the upcoming Chrome OS.

Now the company is focusing on Bing search, Xbox Live, and budding cloud services as the areas of future growth.