Microsoft’s 55% Of Revenue Comes From Enterprise

Microsoft Customer Segments

At FAM held yesterday, Microsoft revealed some new stats regarding its revenue. While tech press is arguing whether Microsoft is a consumer company or an enterprise company, the actual number speaks for itself. Microsoft revealed that 55% of its revenue comes from the Enterprise, 19% from OEMs and 20% from consumer and services. Also they have 5 diverse business groups each contributing revenue significantly except Bing & Online.

too often for you by customer segment. But if you look at our business and the makeup of the company today, well over 55 percent of the business is enterprise, and additionally, there’s some OEM business there that belongs in enterprise, but that’s how we count it, and market it.

19 percent is OEM. 20 percent is consumer and online. And a fair piece of the OEM is also consumer and online. And 6 percent is our small and midsize business. And then when you look at that full picture, as a segment, it’s really telling of where we’ve got a lot of strength, and it’s complemented with our consumer presence. And I’ll talk more about that in a moment.

On the product side, again, the Office Division is the biggest division in the company at 35 percent of our overall total. Server and Tools is second at 26 percent. Windows is third now at 25 percent. Entertainment and Devices is 13 percent. Bing and Online at 4 percent. So you can see the shape and transition of our business on this particular chart that Windows is now the third-largest business in the company.

When you also look geographically, 44 percent of our revenue, ladies and gentlemen, comes from the U.S. and Canada, and 56 percent comes from the rest of the world.  I show you and illustrate these pie charts so that you can see we’re a very balanced and diverse business. Not only from a customer segment standpoint, but from a geographic and the theaters of operations where we operate, and also our products and services.

  • Yuan Taizong

    This is true, most people, even those not on Windows use Microsoft Office as their productivity software suite of choice, it’s simply the best, as for these graphs, it’s understandable that Microsoft wants to make Microsoft Office Mobile more powerful too, most people are slowly, but certainly moving into the Mobile devices ecosystems, and if Microsoft Office Mobile could dominate there, it would be as big a cash-cow as its desktop counterpart, and Microsoft Office 365 has made enourmous profits since its launch.

  • Bugbog

    A definite in the Middle company! Abandoning the consumer facing segment would be enormously erroneous!

    • nohone

      No, no, no, no! They need to sell off all their consumer products, focus only on Windows and Office and never think of entering the consumer market again, allowing Google and Apple to take over every other market. They need to do to themselves what the DOJ tried, but failed to do. Paul Thurrott told me so, and he is never wrong.

  • DKJr

    IMHO, I see Bing & Online continuing to grow probably fastest of the whole lot especially if they continue innovating and participating in some clever M&A activity. It’s a segment with huge potential as Google has proven & immense growth opportunities. I also believe it could be a core of future business to grow in the consumer space as it serves as a consumer lock-in strategy that may ensure consumers stay within the wider ecosystem. Supported by BYOD, once consumers are locked into ecosystem, enterprise adjacencies could also grow – basically a win-win strategy.
    However, all this depends on how fast they can get consumers and enterprise to adopt their new OSes, W8.* and WP8.* that can help quickly grow user base.