Microsoft divides its business into the following seven areas:

Client includes the company’s desktop OSs.

Information Worker includes Office and other business productivity software and services.

Server and Tools includes all Windows server OSs and most server applications (including SQL Server and Exchange Server), server Client Access Licenses, development tools, and corporate services such as consulting and support.

Home and Entertainment includes Xbox, consumer hardware and software, and interactive TV platforms.

MSN includes all MSN sites and services and MapPoint.

Business Solutions includes business management software, such as Great Plains, Navision, and MSCRM; sales and marketing initiatives for small and mid-size businesses; and the Microsoft Partner Program.

Mobile and Embedded Devices includes Windows CE and the platforms based on it, plus other embedded OSs.

This chart shows revenue and operating income or loss for each business segment for Q1’06 and the same quarter a year ago. The last column shows the percentage change in revenues between Q1’06 and the same quarter a year ago. The row Other Expenses counts expenses that cannot be attributed to any single business segment, including legal expenditures and broad-based marketing and administrative expenses.

Microsoft reports financial results in five business segments.

Windows and Windows Live includes desktop OSs and Windows Live software and services.

Business includes Office, Exchange, SharePoint, Dynamics, and other software and online services for businesses.

Server & Tools includes server platform software, such as Windows Server and SQL Server, System Center management software, developer tools, and support and consulting services.

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

Online includes Bing, MSN, and products for advertisers and publishers.

This chart shows revenue and operating income or loss for each business segment for the first quarter of Microsoft’s 2010 fiscal year (Q1’10) and the same quarter a year ago. Last year’s figures have changed from previous reports because Microsoft has changed the composition of its reporting segments. In particular, Windows Live has moved from Online to the new Windows & Windows Live (formerly Client) segment, and services for mobile devices have moved from Online to Entertainment & Devices. The last column shows the percentage change in revenue between Q1’10 and the same quarter a year ago.