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foxtail on 23 January 2014
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DirtyP2002 said:
iceboy151 said:
Where is the bulk of the profit coming from? I'm very ignorant on this matter.


Three main cash cows used to be Server & Tools (SQL, Azure, .NET framework), Office and Windows.
Now the whole organisation has been changed so these products are in different divisions now, but they are still the most profitable ones.

The EDD (Xbox, Surface, WinPhone) was posting healthy profits as well, just not as big as the ones I mentioned. Bing used to be the only not-profitable business, but it started to move in the right direction.

"Windows", "Server & Tools" and "Office" sofware divisions are still going to be the big 3 for MS, though with the new labels for divisions it seems to make it  less transparent and harder to read individual results for each.  Anyways, below are the 2013 fiscal year results where you can see those 3 divsions making the bulk of the operating income.

Operating income fy2013 by division (In millions)

$   9,504       - Windows Division

$   8,164        - Server and Tools 

$ -(1,281)      - Online Services Division

$ 16,194       - Microsoft Business Division (the Office division)

$       848      - Entertainment and Devices Division

$ -(6,665)    - Corporate-Level Activity

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$   26,764     - total Operating income fy2013

 

Windows Division 

Windows Division develops and markets operating systems for computing devices, related software and online services, Surface RT and Pro devices, and PC accessories. This collection of software, hardware, and services is designed to empower individuals, companies, and organizations and to simplify everyday tasks through seamless operations across the user's hardware and software. 

Server and Tools

Server and Tools develops and markets technology and related services that enable information technology professionals and their systems to be more productive and efficient. Server and Tools product and service offerings include Windows Server, Microsoft SQL Server, Windows Azure, Visual Studio, System Center products, Windows Embedded device platforms, and Enterprise Services. 

Online Services Division

Online Services Division ("OSD") develops and markets information and content designed to help people simplify tasks and make more informed decisions online, and help advertisers connect with audiences. OSD offerings include Bing, Bing Ads, and MSN. Bing and MSN generate revenue through the sale of search and display advertising, accounting for nearly all of OSD's revenue.

Microsoft Business Division

Microsoft Business Division ("MBD") develops and markets software and online services designed to increase personal, team, and organization productivity. MBD offerings include the Microsoft Office system ("Office," comprising mainly the core Office product set, Office 365, SharePoint, Exchange, and Lync), which generates over 90% of MBD revenue, and Microsoft Dynamics business solutions.

Entertainment and Devices Division

Entertainment and Devices Division ("EDD") develops and markets products and services designed to entertain and connect people. EDD offerings include the Xbox entertainment platform (which includes the Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox 360 video games, Xbox LIVE, and Xbox 360 accessories), Skype, and Windows Phone, including related patent licensing revenue.

Corporate-Level Activity

Certain corporate-level activity is not allocated to our segments, including costs of: broad-based sales and marketing; product support services; human resources; legal; finance; information technology; corporate development and procurement activities; research and development; costs of operating our retail stores; and legal settlements and contingencies.