Microsoft Corporation, a technology company, develops, licenses, and supports a range of software products, services, and devices. The company’s products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games; and training and certification of computer system integrators and developers. It also designs, manufactures, and sells devices, including PCs, tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories that integrate with its cloud-based offerings. The company offers a range of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and it provides solution support and consulting services. The company also delivers relevant online advertising to a global audience. Strategy The company’s strategy is to build best-in-class platforms and productivity services for a mobile-first, cloud-first world. Segments The company’s segments include Productivity and Business Processes; Intelligent Cloud; and More Personal Computing. Productivity and Business Processes This segment consists of products and services in the company’s portfolio of productivity, communication, and information services, spanning various devices and platforms. This segment primarily consists of office commercial, office consumer, and dynamics business. Office Commercial, including volume licensing and subscriptions to Office 365 commercial for products and services such as Office, Exchange, SharePoint, and Skype for Business, and related Client Access Licenses (CALs). Office Consumer, including Office sold through retail or through an Office 365 consumer subscription, and Office Consumer Services, including Skype, Outlook.com, and OneDrive. Dynamics business solutions, including Dynamics ERP products, Dynamics CRM (customer relationship management) on-premises, and Dynamics CRM online. Office Commercial Office Commercial is designed to increase personal, team, and organizational productivity through a range of products and services. Office Commercial revenue is mainly affected by a combination of the demand from commercial customers for volume licensing and Software Assurance and the number of information workers in an enterprise, as well as the continued shift to Office 365. Office 365 is the company’s cloud-based service that provides access to Office plus other productivity services. CALs provide access rights to certain Office Commercial products and services, including Exchange, SharePoint, and Skype for Business, and revenue is reported along with the associated Office products and services. Office Consumer Office Consumer is designed to increase personal productivity through a range of products and services. Growth depends on the company’s ability to reach new users, add value to its core product set, and continue to expand its product and service offerings into new markets. Office Consumer revenue is mainly affected by the combination of customers that buy Office with their new devices and the continued shift to Office 365. Office Consumer Services revenue is mainly affected by the demand for communication and storage through Skype, Outlook.com, and OneDrive, which is largely driven by subscriptions, advertising, and the sale of minutes. Skype is designed to connect friends, family, clients, and colleagues through various devices. Dynamics Dynamics provides business solutions for financial management, CRM, supply chain management, and analytics applications for small and mid-size businesses, large organizations, and divisions of global enterprises. Dynamics revenue is largely driven by the number of information workers licensed. Competition Competitors to Office include software and global application vendors such as Adobe Systems, Apple, Cisco Systems, Facebook, Google, IBM, Oracle, and SAP. The company’s Dynamics products compete with vendors such as Oracle and SAP in the market for large organizations and divisions of global enterprises. In the market
microsoft corp (MSFT:NASDAQ GS)
One Microsoft Way
Redmond, WA 98052
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