Posted: Mar. 22, 2004

Although multiyear licensing agreements make up the smallest portion of Microsoft's total revenues, these agreements are very important in the Information Worker and Server and Tools segments. This chart shows revenues from the calendar year ending in Dec. 2003, broken down into three delivery categories: annuity, which consists of revenues earned through multiyear license agreements billed annually, such as Enterprise Agreements and Software Assurance coverage; OEM, which includes software bundled with PCs and mobile devices; and one-time licenses, which includes all other sources of revenue. The column on the left shows the breakdown within Microsoft's total revenues. The following three columns show the breakdown within the Client, Information Worker, and Server and Tools business units, respectively.