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Thursday, February 16, 2012

Microsoft Is No Longer The Windows Company

Microsoft Is No Longer The Windows Company


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Thursday, February 16, 2012
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Microsoft Is No Longer The Windows Company

For the longest time, the conventional thinking was that Windows was the most important part of Microsoft's business. Turns out that's changing.

As you can see in this chart, the Business Division, which is home to Office group, has blown past the Windows division as growing percentage of the company's operating profit.

The two are symbiotic. The more people using Windows, the more people will use Office. However, the Windows business is in decline as mobile gadgets like the iPad and iPhone and Android phones become more and more popular.

Instead of denying what's happening, Microsoft needs to profit from it by offering Office for all of these new, huge platforms.

(One thing to note: The chart looks like it's seasonal, and that right before a new Windows release, it dips. It's a little misleading though because Microsoft deferred revenue for a quarter, which accelerated the drop.)  
Read »


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