Five Businesses: Financial Overview

Microsoft reports finances in five business segments.

Client includes desktop OSs.

Business includes Office, Exchange, SharePoint Server, Dynamics, and other business software and online services.

Server and Tools includes Windows Server, SQL Server, and the System Center and Forefront products, as well as developer tools and consulting and support services.

Entertainment and Devices includes Xbox, consumer hardware and software, and mobile and embedded hardware and software.

Online includes consumer online services, such as Bing, Windows Live, and MSN; and Microsoft’s platforms for online advertisers and publishers. (In FY’10, Windows Live will move to the Client segment, and mobile services will move to the Entertainment and Devices segment.)

Other includes income and expenses, such as legal charges, human resources expenditures, and companywide marketing efforts, that cannot be attributed to any one business segment.

This chart shows each business segment’s revenue in FY’08, estimated and actual revenues in FY’09 (which ended June 30, 2009), and operating income or loss in FY’08 and FY’09. In a change from previous Financial Analysts Meetings, Microsoft did not provide segment revenue estimates for FY’10.