, online, and Microsoft retail stores. OEMs: The company distributes software through OEMs that pre-install its software on new devices and servers they sell. The major component of the OEM business is the Windows operating system pre-installed on computing devices. OEMs also sell hardware pre-installed with other Microsoft products, including server and embedded operating systems and applications such as the company’s Microsoft Office suite. In addition to these products, the company markets its services through OEMs and service bundles, such as Windows with Bing or Windows with Office 365 subscription. The company has distribution agreements covering one or more of its products with all of the multinational OEMs, including Acer, ASUST, Dell, Fujitsu, Hewlett-Packard, Lenovo, Samsung, Toshiba, and with many regional and local OEMs. The second category of OEMs consists of lower-volume PC manufacturers (also called system builders), which source their Microsoft software for pre-installation and local redistribution primarily through the Microsoft distributor channel rather than through a direct agreement or relationship with Microsoft. Distributors and Resellers Many organizations that license the company’s products and services through Enterprise Agreements transact directly with it, with sales support from solution integrators, independent software vendors, Web agencies, and developers that advise organizations on licensing its products and services (Enterprise Agreement Software Advisors, or ESAs). Organizations also license the company’s products and services indirectly, primarily through licensing solution partners (LSPs), distributors, value-added resellers (VARs), OEMs, system builder channels, and retailers. Its distributors include Ingram Micro and Tech Data, and some of its major resellers include CDW, Dell, Insight Enterprises, and Software House International. The company’s Dynamics software offerings are also licensed to enterprises through a global network of channel partners providing vertical solutions and specialized services. It distributes its retail packaged products primarily through independent non-exclusive distributors, authorized replicators, resellers, and retail outlets. Individual consumers obtain these products primarily through retail outlets, including Microsoft retail stores. The company distributes its devices through third-party retailers and Microsoft retail stores. Its phones are also distributed through global wireless communications carriers. The company has a network of field sales representatives and field support personnel that solicit orders from distributors and resellers, and provides product training and sales support. Online The company provides commercial cloud-based solutions, such as Office 365, Azure, and Dynamics CRM Online. It also provides online content services to consumers through Bing, MSN portals and channels, Office 365, Xbox Live, Outlook.com, OneDrive, Skype, and Windows Store. Other services delivered online include the company’s online advertising platform with offerings for advertisers and publishers, as well as Microsoft Developer Network subscription content and updates, periodic product updates, and online technical and practice readiness resources to support its partners in developing and selling its products and solutions. The company sells many of the cloud-based services through its enterprise agreements and has also enabled new sales programs to reach small and medium-sized businesses. These programs include direct sales, direct sales supported by a large network of partner advisors, and resale of services through operator channels, such as telephone, cell, and cable providers. It also sells its products through its Microsoft retail stores and online marketplaces. Customers The company’s customers include individual consumers, small- and medium-sized organizations, large global enterprises, public sector institutions, Internet service providers, application developers, and OEMs. History Microsoft Corporation was founded in 1975.
microsoft corp (MSFT:NASDAQ GS)
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