Microsoft Corp

MSFT

Microsoft Corp

@v_ffr3nchfry
• 10 months ago

How Do They Make Money?

How Do They Make Money?

Microsoft is a technology company that sells hardware (Xbox, and Surface devices) and software (the Windows operating system, Microsoft 365/Dynamics 365/Power platform suite of apps, Azure cloud, Copilot, SharePoint, Edge internet browser, LinkedIn, Bing search engine, Visual Studio, and Microsoft store). Azure offers IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and SaaS (Software as a Service) and though Azure and Copilot are their primary AI initiatives, they plan to incorporate AI into all their offerings.

Financial performance using three segments:

Productivity and Business Processes

(Competition: Apple, Cisco Systems, Google, Meta, Proofpoint, Slack, Symantec, Zoom, and numerous web-based and mobile application competitors as well as local application developers)

Our Productivity and Business Processes segment consists of products and services in our portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:

  • Office Commercial (Office 365 subscriptions, the Office 365 portion of Microsoft 365 Commercial subscriptions, and Office licensed on-premises), comprising Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Copilot for Microsoft 365.

  • Office Consumer, including Microsoft 365 Consumer and Copilot Pro subscriptions, Office licensed on-premises, and other Office services.

  • LinkedIn, including Talent Solutions, Marketing Solutions, Premium Subscriptions, and Sales Solutions.

  • Dynamics business solutions, including Dynamics 365, comprising a set of intelligent, cloud-based applications across ERP, CRM, Power Apps, and Power Automate; and on-premises ERP and CRM applications.

Intelligent Cloud

(Competition: Amazon, Broadcom, Google, IBM, Oracle, and open source offerings)

Our Intelligent Cloud segment consists of our public, private, and hybrid server products and cloud services that can power modern businesses and developers. This segment primarily comprises:

  • Server products and cloud services, including Azure and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (“CALs”); and Nuance and GitHub.

  • Enterprise and partner services, including Enterprise Support Services, Industry Solutions, Nuance professional services, Microsoft Partner Network, and Learning Experience.

More Personal Computing

(Competition: mainly Apple and Google, and Microsoft Defender for Endpoint competes with CrowdStrike on endpoint security solutions)

Our More Personal Computing segment consists of products and services that put customers at the center of the experience with our technology. This segment primarily comprises:

  • Windows, including Windows OEM licensing and other non-volume licensing of the Windows operating system; Windows Commercial, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; and Windows Internet of Things.

  • Devices, including Surface, HoloLens, and PC accessories.

  • Gaming, including Xbox hardware and Xbox content and services, comprising first-party content (such as Activision Blizzard) and third-party content, including games and in-game content; Xbox Game Pass and other subscriptions; Xbox Cloud Gaming; advertising; third-party disc royalties; and other cloud services.

  • Search and news advertising, comprising Bing (including Copilot), Microsoft News, Microsoft Edge, and third-party affiliates.