Last time MS tried not to cannibalize their own market, they failed to show up for the Internet in the 1990s Netscape/Google era. If they are cannibalizing their own market now, it means they have learned how to stay afloat as times change.
That's important, especially if you assume that Cloud is where future growth lies, and on-prem installed software/hardware is not.
In all this, "Revenue" is a silly word, since in the Cloud world, you've got comingled hardware rentals and software licensing, which have very different profit margins.