Updated: July 12, 2020 (March 22, 2004)
Analyst ReportHow Customers Buy Microsoft Products
Newly revealed information about Microsoft’s sales channels breaks down the revenue Microsoft receives from multiyear license agreements, OEM licenses, and one-time sales of licenses or services. The numbers, provided in recent presentations by Chief Financial Officer John Connors, provide new insight into how financial considerations may influence certain product planning decisions, the company’s continuing reliance on OEMs, and why quarterly earnings results don’t paint a complete picture of Microsoft’s financial health, particularly in the Information Worker and Server and Tools business units.
Three Sales Methods
In a pair of Feb. 2004 speeches to financial analysts, Connors outlined the three primary ways in which customers buy Microsoft products: through volume license agreements billed annually (“annuity” purchases), through OEMs, and as one-time purchases. He also revealed how much revenue can be attributed to each sales method in Microsoft’s three most important business segments:
Atlas Members have full access
Get access to this and thousands of other unbiased analyses, roadmaps, decision kits, infographics, reference guides, and more, all included with membership. Comprehensive access to the most in-depth and unbiased expertise for Microsoft enterprise decision-making is waiting.
Membership OptionsAlready have an account? Login Now
Not a member but want to see the full content? Contact us.