Re: Microsoft's revenue structure

2024-05-16 Thread Akira Urushibata
> What's your takeaway here?

For many years the Microsoft's core product were operating systems:
MS/DOS and Windows.  It is remarkable that revenue from operation
systems has dropped to a mere 10% 


> It'd be illegal for a publicly-traded company to meddle with financial 
> results and they'd risk lawsuits from investors ...

Computer software is a relatively new industry and accounting rules and
conventions have not kept up with reality.  What is illegal and what is
not is a murky matter.

People who buy isolated Microsoft software products are a minority.
Most people buy personal computers with software pre-installed.  How
much does Microsoft earn with each PC sale?  We don't know.  Of the
portion that goes to Microsoft, how much is for the OS and how much is
for applications?  Possibly the PC price tag includes a one-time fee
for Bing search engine features which are accessible only from Windows
computers.


> I think you're confusing revenue with market share.

Revenue and market share are different.  But they are related.

If you have a monopoly you can charge dear for your product and enjoy
high profits.  You can also dictate various terms to your advantage.
You can ignore demands for customization and tell customers who need
it to find and hire some party which will offer such service.

The server market and game market are competitive.  They are not as
lucrative as the OS market was when it was dominated by Microsoft.


Thank you for the reply.  I hope the above helps clarify some points.

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Re: Microsoft's revenue structure

2024-05-15 Thread Marc Sunet

What's your takeaway here? Is this mostly an exercise out of curiosity?

> The Techrights site frequently posts articles which say that 
Microsoft's accounts should not be trusted.


It'd be illegal for a publicly-traded company to meddle with financial 
results and they'd risk lawsuits from investors, so I'm not sure where 
this claim comes from. Here's 2024 Q1 earnings:


https://www.microsoft.com/en-us/Investor/earnings/FY-2024-Q1/press-release-webcast

> Server products and cloud services is the product category generating 
the most revenue.  I personally do not often encounter Microsoft 
servers, especially web servers and email servers, so such a large 
presence comes as a surprise.


They missed the phone shift and cloud/Azure is where they put their 
money at. Likely to keep trending upwards with the OpenAI hype as of 
late. IIS is also fairly popular in corporate networks, but that's 
probably a drop in the ocean for them now.


> Maybe Microsoft has woken up to the fact that with the limited market 
share they hold today, they don't get to alter standards at will.


I don't think they have. I think you're confusing revenue with market 
share. Windows/desktop is a drop in the bucket for the company in terms 
of revenue, and the garbage that is Windows 11 shows for it. But they 
still hold >90% strong of desktop/laptop market share due to their 
partnerships with OEMs.


Which reminds me, how is it still legal for an OEM to ship a "default" 
OS in a computer without giving the customer any choice, esp. with 
BIOSes that now often don't let you boot a third-party OS unless you 
enable the option explicitly (and those that they let you boot I think 
need a secure boot key signed by Microsoft, lol)? Has this been an 
avenue of research for the FSF or some other organization lately?


Marc

On 2/24/24 18:35, Akira Urushibata wrote:

I decided to take took a look at Microsoft's revenue structure.  In
the past Windows was the leading product, and by far, but it is not so
today.  In 2023 Windows accounted for only 10% of total revenue.  In
the most recent quarter, revenue from games has surpassed revenue from
Windows.

Server products and cloud services is the product category generating
the most revenue.  I personally do not often encounter Microsoft
servers, especially web servers and email servers, so such a large
presence comes as a surprise.

When Windows ruled dominant, we often encountered Microsoft products
with certain enhancements that did not respect established protocols
and standards.  We often heard that the software faithful to the
standards was somehow broken.  Nowadays I hear few tales of problems
of this sort.  Maybe Microsoft has woken up to the fact that with the
limited market share they hold today, they don't get to alter
standards at will.

Maybe some list subscribers feel that now systemd has become a
source of concern.

Microsoft Revenue Breakdown - FourWeekMBA
https://fourweekmba.com/microsoft-revenue-breakdown/

Server Products & Cloud Services 79.97 37.7%
Office Products & Cloud Services 48.73 23.0%
Windows  21.50 10.1%
Gaming   15.46  7.2%
Linkedin 15.14  7.1%
Search Advertising   12.20  5.7%
Enterprise services   7.72  3.6%
Devices   5.52  2.6%
Other 5.60  2.6%

The Techrights site frequently posts articles which say that
Microsoft's accounts should not be trusted.  The above figures are
from a site for students of business administration.  I believe they
are based on reports from Microsoft.

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Microsoft's revenue structure

2024-02-26 Thread Akira Urushibata
I decided to take took a look at Microsoft's revenue structure.  In
the past Windows was the leading product, and by far, but it is not so
today.  In 2023 Windows accounted for only 10% of total revenue.  In
the most recent quarter, revenue from games has surpassed revenue from
Windows.

Server products and cloud services is the product category generating
the most revenue.  I personally do not often encounter Microsoft
servers, especially web servers and email servers, so such a large
presence comes as a surprise.

When Windows ruled dominant, we often encountered Microsoft products
with certain enhancements that did not respect established protocols
and standards.  We often heard that the software faithful to the
standards was somehow broken.  Nowadays I hear few tales of problems
of this sort.  Maybe Microsoft has woken up to the fact that with the
limited market share they hold today, they don't get to alter
standards at will.

Maybe some list subscribers feel that now systemd has become a
source of concern.

Microsoft Revenue Breakdown - FourWeekMBA 
https://fourweekmba.com/microsoft-revenue-breakdown/

   Server Products & Cloud Services 79.97 37.7%
   Office Products & Cloud Services 48.73 23.0%
   Windows  21.50 10.1%
   Gaming   15.46  7.2%
   Linkedin 15.14  7.1%
   Search Advertising   12.20  5.7%
   Enterprise services   7.72  3.6%
   Devices   5.52  2.6%
   Other 5.60  2.6%

The Techrights site frequently posts articles which say that
Microsoft's accounts should not be trusted.  The above figures are
from a site for students of business administration.  I believe they
are based on reports from Microsoft.

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