Robert Galbraith/ReutersSatya Nadella, CEO of Microsoft Corp.
Microsoft has filed a document with the SEC giving more details on its new financial structure, which it announced yesterday.
The company is moving from five business segments to three.
Basically, the new Productivity and Business Processes segment corresponds with Office; Intelligent Cloud corresponds with Windows Server and other infrastructure products; and More Personal Productivity corresponds with Windows. Other businesses that used to be reported on a standalone basis, like online services and the Xbox, have now been lumped into those three big categories.
Here's how the three business segments fared in terms of revenue and operating profit (loss) for the last two fiscal years. The "Corporate and Other" segment includes broad-based expenses that can't be put into a single business unit, like legal judgments and general and administrative costs — and the $7.6 billion write-down from the Nokia acquisition, which happened at the end of its last fiscal year.
(In millions)
Year Ended June 30, 2015 2014Revenue
Productivity and Business Processes
26,431 26,972Intelligent Cloud
23,715 21,732More Personal Computing
42,953 38,407Corporate and Other
481 (278 )Total revenue
93,580 86,833(In millions)
Year Ended June 30, 2015 2014Operating income (loss)
Productivity and Business Processes
13,087 13,940Intelligent Cloud
9,871 8,443More Personal Computing
5,179 6,150Corporate and Other
(9,976) (774 )Total operating income (loss)
18,161 27,759You can really see how all of Microsoft's current growth is being driven by its enterprise business — Windows Server, SQL Server, the Azure cloud, and so on. Revenue and profits from the Office business declined between its fiscal 2014 and 2015 years, and profits from the Windows business dropped quite steeply.
In detail, here's the breakdown of the new segments:
Productivity and Business Processes
Our Productivity and Business Processes segment consists of products and services in our portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:
Intelligent Cloud
Our Intelligent Cloud segment consists of our public, private, and hybrid server products and services that can power modern business. This segment primarily comprises:
More Personal Computing Our More Personal Computing segment consists of products and services geared towards harmonizing the interests of end users, developers, and IT professionals across screens of all sizes. This segment primarily comprises:
Source: Here's how much money Microsoft's three new businesses are making
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