Businessweek

Microsoft Corporation develops, licenses, and supports a range of software products and services for various computing devices worldwide. The company’s products include operating systems for personal computers (PCs), servers, phones, and other intelligent devices; server applications for distributed computing environments; productivity applications; business solution applications; desktop and server management tools; software development tools; video games; and online advertising. The company also designs and sells hardware, including the Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox 360 accessories, and Microsoft PC hardware products. The company provides consulting and product and solution support services, and it trains and certifies computer system integrators and developers. The company also offers cloud-based solutions that provide customers with software, services and content over the Internet by way of shared computing resources located in centralized data centers. The company also conducts research and develops advanced technologies for future software and hardware products and services. Operating Segments The company operates its business in five segments: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. WINDOWS & WINDOWS LIVE DIVISION This division develops and markets personal computer (PC) operating systems, related software and online services, and PC hardware products. This collection of software, hardware, and services is designed to empower individuals, companies, and organizations and simplify everyday tasks through operations across the user’s hardware and software, and Web browsing. The Windows operating system software is purchased by original equipment manufacturers (OEMs), which they pre-install on equipment they sell. Principal Products and Services: The company offers Windows 7 operating system; Windows Live suite of applications and Web services; and PC hardware products. Competition: The Windows operating system faces competition from various commercial software products and from alternative platforms and devices, mainly from Apple and Google. Windows Live software and services compete with similar software and service products from Apple, Google, and Yahoo!. SERVER AND TOOLS This division develops and markets server software, software developer tools, services, and solutions that are designed to make information technology professionals and developers and their systems productive. Server software is integrated server infrastructure and middleware designed to support software applications built on the Windows Server operating system. This includes the server platform, database, business intelligence, storage, management and operations, virtualization, service-oriented architecture platform, security and identity software. This division also builds standalone and software development lifecycle tools for software architects, developers, testers, and project managers. Server offerings can be run on-site, in a partner-hosted environment, or in a Microsoft-hosted environment. The company’s cloud-based services comprise a scalable operating system with computing, storage, management, and database capabilities, from which customers can run enterprise workloads and Web applications. These services also include a platform that helps developers connect applications and services in the cloud or on premise. The Server and Tools division offers a range of enterprise consulting and product support services (Enterprise Services) that assist customers in developing, deploying, and managing Microsoft server and desktop solutions. In addition, Windows Embedded extends the power of Windows and the cloud to intelligent systems by delivering specialized operating systems, tools, and services. Server and Tools also provides training and certification to developers and information technology professionals for its Server and Tools, Microsoft Business Division, and Windows & Windows Live Division products and services. Principal Products and Services: The company