Office 365, Bing advertisements, Surface tablets (they say they doubled their revenue from Surface in the last year), Xbox 360, Xbox Live, Xbox One, Microsoft human input devices (mice and keyboards), Windows upgrades (consumer and OEM), Skydrive, support and licensing, SQL Server, Windows Server in general, Skype, Exchange... the list goes on.
Certainly. Azure is way behind AWS in the startup scene, but Microsoft is pushing Azure into the enterprise, with good features such as service bus and VPN to connect internal networks with cloud services. The list of Azure services is growing rapidly.
Microsoft is also bundling Azure hosting with enterprise agreements, which effectively gives enterprises a substantial free tier.