Microsoft’s Windows Division Generated Less Revenue Than Its Servers Division (MSFT)


Here’s an incredible chart from Microsoft’s last earnings report that didn’t get the sort of attention it deserves. The Server and Tools division generated more revenue than the Windows division in the last fiscal year.

The Windows division is still much more profitable, earning $11.5 billion compared versus $7.4 billion for Servers & Tools. And one of the reasons Windows generated less revenue than Server & Tools is that Windows 7 is at the end of its run.

However, this chart is illustrative of a two big trends for Microsoft. First, while Vanity Fair wants to call it a lost decade for Microsoft, it clearly wasn’t all lost since it built a third huge new business division. Second, while people worry about the future of Windows, and whether or not it gets disrupted by iOS and Android, the truth of the matter is that Microsoft is more than just Windows.

chart of the day, microsoft's revenue by segment, july 2012

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Tuesday, July 31st, 2012 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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