Microsoft Corporation

Microsoft Corporation is an American multinational technology company with headquarters

in Redmond, Washington. It develops, manufactures, licenses, supports, and sells computer
software, consumer electronics, personal computers, and related services. Its best known
software products are the Microsoft Windows line of operating systems, the Microsoft
Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products
are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal
computers. In 2016, it was the world's largest software maker by revenue
(currently Alphabet/Google has more revenue).] The word "Microsoft" is a portmanteau of
"microcomputer" and "software". Microsoft is ranked No. 30 in the 2018 Fortune 500 rankings of
the largest United States corporations by total revenue.
Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975, to develop and
sell BASIC interpreters for the Altair 8800. It rose to dominate the personal computer operating
system market with MS-DOS in the mid-1980s, followed by Microsoft Windows. The company's
1986 initial public offering (IPO), and subsequent rise in its share price, created three billionaires
and an estimated 12,000 millionaires among Microsoft employees. Since the 1990s, it has
increasingly diversified from the operating system market and has made a number of corporate
acquisitions, their largest being the acquisition of LinkedIn for $26.2 billion in December
2016, followed by their acquisition of Skype Technologies for $8.5 billion in May 2011.
Revenue: $33.7 billion 12% Operating income: $12.4 billion 20% Net Income: $13.2 billion
GAAP and $10.6 billion non-GAAP 49% and 21% respectively EPS: $1.71

PRODUCT PERAMETER
Microsoft is an unusual company for the sheer number of product lines that bring in more
than a billion dollars. While the company doesn't break out revenues for all of its product
lines, Communications Director Frank Shaw famously revealed Microsoft's billion-dollar
businesses to the TechFlash news blog last year. Under those businesses, of course, are
Microsoft's most important product lines.

1. Windows Microsoft's bread and butter is Windows and despite some who predict its
demise, the OS is doing quite well. Microsoft revealed that it has sold 400 million copies of
its latest version, Windows 7. Still, Microsoft faces challenges. PC growth is slowing and
with the most drastic overhaul ever of Windows planned for Windows 8, it remains to be
seen how the market responds to the product's new tile- and touch-focused UI.

2. Office Anyone who knows anything about Microsoft is aware how

important its Office franchise is to the company. Microsoft has shipped 100
million copies of Office 2010 since the product's release in mid-2010.
Despite a long history of stellar growth, consumer licensing of Office
dropped 8 percent last year but businesses helped drive Office revenues up 27 percent during
the company's 2011 fiscal year.

3. Exchange While a growing number of customers are offloading their e-mail systems to the
cloud, only a small sliver of large enterprises are making the wholesale shift. Exchange
remains the most widely adopted enterprise e-mail platform.
4. SharePoint While it has its share of detractors, SharePoint is a billion-plus-dollar business
for Microsoft because it lets enterprises share information generated from Office and other
sources.

5. SQL Server The database is a key pillar of the Microsoft Server & Tools
Business. SQL Server revenues increased 20 percent in fiscal year 2011. On
tap for this year is SQL Server 2012, code-named "Denali," which will push
the envelope in terms of support for business intelligence features and
support for big data.

6. Windows Server As long as Microsoft is selling lots of SQL Server, Exchange Server,
SharePoint and Dynamics, customers need Windows Server. Besides that, of course,
Windows Server provides enterprises with their core authentication services through Active
Directory and virtualization via Hyper-V, as well as providing the infrastructure for products
such as IIS and Windows Storage Server.

7. Visual Studio The latest release, Visual Studio 2010, has enabled
thousands of developers to target Microsoft's latest platforms, including
Windows 7, Windows Azure, and Windows Phone 7, as well as the
forthcoming Windows 8. "Visual Studio 11" is now in the works.
8. Xbox At last count, Microsoft reported 35 million members of its Xbox
Live community. In fiscal year 2011, Microsoft sold 13.7 million Xbox
consoles, compared with 10.3 million in 2010. Revenues for the company's
Entertainment and Devices Division hit $2.7 billion, a 48 percent year-
over-year increase.

9. Bing It will be a long time, if ever, before Microsoft's search engine can unseat Google as
the default search engine of choice. But thanks to Microsoft's partnership with Yahoo!, Bing
has grabbed a 14 percent share of the search market, up 31 percent over FY 2010. Still, Bing
and the rest of Microsoft's advertising and online business continue to lose money to the tune
of $2.5 billion, based on revenues of the same amount.

10. Dynamics Microsoft's portfolio of ERP and CRM software and services
is believed to generate more than $1 billion in revenue. While Microsoft is
in the process of updating the entire portfolio with cloud and social
networking features, the company faces a barrage of rivals in this cutthroat market.

11. System Center Believe it or not, the Microsoft System Center product line also brings in
more than $1 billion in annual revenue. Used to manage both hardware and software running
in enterprise datacenters, Microsoft just gave the management suite a major refresh. Due out
in the first half of this year is System Center 2012, which will add new capabilities to
operations and applications management.

12. Skype The newest addition to the Microsoft portfolio, Skype grossed $860 million in
2010, according to its IPO filing, before the company was snapped up. Between the unified
communications business of Lync and Skype, Microsoft says it intends to increase the
availability of real-time voice and video communications to consumers and enterprises.

13. Windows Azure This is the only product line on the list that probably isn't even close to
generating a billion dollars in revenue. Nevertheless, the Windows Azure platform is clearly
an important product line as Microsoft customers and partners transition their systems and
apps to the cloud. Its success or failure will have huge implications for Microsof

DELIEVRY PERAMETER
Distributors and Resellers
Many organizations that license our products and services through enterprise agreements transact
directly with us, with sales support from solution integrators, independent software vendors, web
agencies, and developers that advise organizations on licensing our products and services ("Enterprise
Software Advisors"). Organizations also license our products and services indirectly, primarily through
large account resellers ("LARs"), distributors, value-added resellers ("VARs"), OEMs, system builder
channels, and retailers. Although each type of reselling partner reaches organizations of all sizes, LARs
are primarily engaged with large organizations, distributors resell primarily to VARs, and VARs typically
reach small-sized and medium-sized organizations. Enterprise Software Advisors typically are also
authorized as LARs and operate as resellers for our other licensing programs, such as the Select Plus
and Open licensing programs discussed under "Licensing Options" below. Some of our distributors
include Ingram Micro and Tech Data, and some of our largest resellers include CDW, Dell, Insight
Enterprises, and Software House International.

Our Microsoft Dynamics software offerings are licensed to enterprises through a global network of
channel partners providing vertical solutions and specialized services. We distribute our retail
packaged products primarily through independent non-exclusive distributors, authorized replicators,
resellers, and retail outlets. Individual consumers obtain these products primarily through retail
outlets, such as Wal-Mart, Dixons, and Microsoft Stores. We distribute our hardware products,
including Surface, Xbox, and PC accessories, through third-party retailers and Microsoft Stores. We
have a network of field sales representatives and field support personnel that solicits orders from
distributors and resellers, and provides product training and sales support.

Online
Although client-based software will continue to be an important part of our business, increasingly we
are delivering additional value to customers through cloud-based services. We provide online content
and services to consumers through Bing, MSN portals and channels, Microsoft Office Web Apps,
Office 365, Windows Phone Marketplace, Xbox LIVE, Outlook.com, Skype, and Windows Store. We also
provide to business users commercial cloud-based services such as Exchange Online, Microsoft
Dynamics CRM Online, Windows Azure, Windows Intune, and Office 365 consisting of online versions
of Office, Exchange, SharePoint, Lync, and Yammer. Other services delivered online include our online
advertising platform with offerings for advertisers and publishers, as well as Microsoft Developer
Networks subscription content and updates, periodic product updates, and online technical and
practice readiness resources to support our partners in developing and selling our products and
solutions. As we increasingly deliver online services, we sell many of these cloud-based services
through our enterprise agreements and have also enabled new sales programs to reach small and
medium-sized businesses. These new programs include direct sales, direct sales supported by a large
network of partner advisors, and resales of services through operator channels, such as telephone, cell,
and cable providers. We also sell our products through our online store, microsoftstore.com.
Volume parameter
In all, sales of Microsoft Surface devices grew about 39 percent, “ahead of expectations,” to
$1.86 billion, Microsoft chief financial officer Amy Hood said during an analyst call covering
Microsoft’s second fiscal quarter of 2019. Overall, Microsoft made $8.4 billion on revenue of
$32.5 billion, up 12 percent overall.

In all, sales of Microsoft Surface devices grew about 39 percent, “ahead of

expectations,” to $1.86 billion, Microsoft chief financial officer Amy Hood said during
an analyst call covering Microsoft’s second fiscal quarter of 2019. Overall, Microsoft
made $8.4 billion on revenue of $32.5 billion, up 12 percent overall.

Profitability
Profits: Net profits of $10.6 billion for the quarter, $1.37 per share, sailed past
analyst expectations of $1.21 per share.
For all of 2019, Microsoft raked in $36.8 billion in net profits, up 22 percent over the
prior year.
In a statement, Microsoft CEO Satya Nadella saluted the record year and gave credit
to the company’s efforts to build strong partnerships across industries.
“It was a record fiscal year for Microsoft, a result of our deep partnerships with
leading companies in every industry,” he said. “Every day we work alongside our
customers to help them build their own digital capability – innovating with them,
creating new businesses with them, and earning their trust. This commitment to our
customers’ success is resulting in larger, multi-year commercial cloud agreements
and growing momentum across every layer of our technology stack.”