Speaking to analysts, Microsoft's India-born CEO Satya Nadella said the firm will invest on productivity, while consolidating overlapping efforts and running all businesses in an "economically" sound way.
"Looking forward in fiscal year 2015, we are increasing our investment in R&D and sales for our digital work and life businesses even as we cut total operating expenses. We have a rich roadmap going forward," Nadella said.
Two examples of such innovations are Delve and Skype Translator, he added.
Skype Translator will allow translation of voice conversation in "near real-time", while Delve is a new breed of intelligent and social work experiences.
"...consolidate overlapping efforts. This means one operating system that covers all screen sizes and consolidated dual use productivity services that cross life and work. We will streamline the next version of Windows from three operating systems into one single converged operating system for screens of all sizes," he said.
Nadella added that the firm will unify its stores, commerce and developer platforms to drive a more coherent user experience and a broader developer opportunity.
"We also see great opportunity in simplifying and managing the user experiences spanning multi-devices ecosystems with our identity management, device management and data security," he said.
Also, to evolve the Windows business model, the company will offer Windows licenses free for companies building a device less than nine inches.
"Now, Windows licenses are USD 0 (zero) for any OEM building a device less than nine inches. We also added a low cost Windows offering with Bing integration for OEM," he said.
This new offering combined with lower hardware spec means OEMs will bring a fantastic line up of value based notebooks and tablets to the markets this holiday, he added.