THIS INFORMATION IS OUTDATED. Click here to see the updated 2012 report.
Since my previous article on this topic has received a lot of attention, I figured I should update the numbers for 2010.
Before I post these numbers (which are publicly available via Microsoft’s 10K filing), let me clearly state that I do not compile this information in order to advocate a pro- or anti-Microsoft agenda. My primary purpose in compiling this information is to help individuals discuss Microsoft with some level of objectivity.
So without further ado, here’s a simplified version of “where does Microsoft make its money (2010).”
Total Revenue and Operating Income (June 2009 – 2010)
Total Revenue: $62,484,000,000
Operating Income: $24,098,000,000
For those who don’t know, Operating Income = Operating Revenue – Operating Expenses. In other words, “Operating Income” is the profit made from normal business operations. (A more formal definition is available from Investopedia: “Operating income would not include items such as investments in other firms, taxes or interest expenses. In addition, nonrecurring items such as cash paid for a lawsuit settlement are often not included. Operating income is required to calculate operating margin, which describes a company’s operating efficiency.”)
Revenue and Operating Income by Division (June 2009 – 2010)
Microsoft’s products are divided into five divisions: Windows & Windows Live (formerly “Client”), Server and Tools, Online Services, Microsoft Business, and Entertainment and Devices. The types of products and services provided by each segment are summarized below:
Windows and Windows Live – Windows operating system: Windows 7, including Home Basic, Home Premium, Professional, Ultimate, Enterprise, and Starter Edition; Windows Vista, including Home Basic, Home Premium, Ultimate, Business, Enterprise and Starter Edition; and Windows XP Home. Windows Live suite of applications and web services.
Server and Tools – Windows Server operating system; Windows Azure; Microsoft SQL Server; SQL Azure; Visual Studio; Silverlight; System Center products; Biz Talk Server; Microsoft Consulting Services; Premier product support services; and other products and services.
Online Services Business – Bing; Microsoft adCenter; MSN; and Atlas online tools for advertisers and publishers.
Microsoft Business Division – Microsoft Office; Microsoft SharePoint; and Microsoft Dynamics ERP and CRM, as well as Microsoft Office Web Apps, which are the online companions to Microsoft Word, Excel, PowerPoint and OneNote.
Entertainment and Devices Division – Xbox 360 console and games; Xbox LIVE; Windows Phone; Windows Embedded device operating system; Zune; Mediaroom; and numerous consumer software and hardware products (such as Mac Office, mice, and keyboards); and Windows Automotive.
Microsoft’s previous fiscal year (June 2009-2010) was a particularly interesting one, with major headlines including the Windows 7 launch, Office 2010 launch, a redesigned XBox 360, Windows Phone 7, a new search and advertising agreement with Yahoo!, and the first full year of Bing-branded services. Some of these announcements came late in the fiscal year, which can indicate significant development cost without corresponding sales (keep that in mind).
The 2009-2010 Revenue and Operating Income for each division, in USD, is as follows:
Windows and Windows Live
Revenue: $18,491,000,000
Operating Income: $12,977,000,000
Server and Tools (Windows Server, Windows Azure, Visual Studio, Silverlight)
Revenue: $14,866,000,000
Operating Income: $5,491,000,000
Online Services (Bing, MSN, Hotmail)
Revenue: $2,199,000,000
Operating income: $-2,355,000,000
Business (Office, SharePoint, Dynamics ERP/CRM)
Revenue: $18,642,000,000
Operating income: $11,776,000,000
Entertainment and Devices (XBox 360/LIVE, Zune, Windows Phone, hardware)
Revenue: $8,058,000,000
Operating income: $679,000,000
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Surprise surprise its Windows and Office.
By abdussamad | February 21, 2011, 5:42 am |where would office live meeting fall into?
By john | April 9, 2011, 2:04 am |Microsoft Business Division, since live meeting is branded with the “Office” moniker.
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By 从永中科技破产看办公软件的商业模式 | 到处串门的 | April 21, 2011, 4:57 am |[...] for both Google and Microsoft are other services or product lines. Microsoft gets less than 5% of its revenues from cloud services, a vast majority contributed by on premise product lines like Windows OS, [...]
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By A call to BPOS and Google Apps customers – SYS | NotifySync in Canada | June 1, 2011, 4:56 am |So here’s how to ruin Microsoft,
o upgrade to Linux 0$ (i suggest Xubuntu)
o Wine 0$ takes some casual gamers
o LibreOffice 0$
By uu62 | July 4, 2011, 4:26 pm |[...] 讲到微软Office，可以先看一下2010年微软的财报数据（所有数据来自微软官方网站，由tennerhelland整理总结）。2009-2010年，微软各部门营收情况如下（下面的有效营收指减去支出之后的营业额）： [...]
By John.G的网络世界 » 从永中科技破产看办公软件的商业模式 | September 19, 2011, 8:34 am |[...] sounds of IGN's article Microsoft is just past breaking even, but according to this article: http://www.tannerhelland.com/2962/where-does-microsoft-make-its-money-2010/ Microsoft makes enough money from everything else that it more than makes up for any losses. [...]
By The fall of Console Gaming? - aceunknown: Blog - IGN | March 16, 2012, 1:45 am |[...] Microsoft Office. As you can see from the chart, Windows & Office sales accounts for 60% of Microsoft’s revenue. But have you ever wondered how Google makes [...]
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