Microsoft Revenue by Reportable Business Segments
Microsoft Revenue by Reportable Business Segments 2014-18
The following table shows Microsoft's revenue by each reportable segment from 2014 to 2018.
Sums are in million dollars.
(All sums in $millions)
|INTELLIGENT CLOUD REVENUE (MN $)||$32,219||$27,440||$25,042||$23,715||$21,735|
|Productivity & Business Processes||$35,865||$29,870||$25,792||$26,430||$26,976|
|Corporate & Other||-338|
Microsoft's business is divided into three major reportable segments including Productivity and Business Processes, Intelligent Cloud and More Personal Computing. More personal computing is the largest reportable business segment followed by Productivity and Business Processes and Intelligent Cloud based upon revenue. More personal computing generated revenue equal to 42,276 Million dollars in 2018 followed by Productivity and Business Processes which generated revenue equal to 35,865 Million dollars. Intelligent cloud segment of Microsoft's business generated revenue equal to 32,219 Million dollars.
“Microsoft is a technology company whose mission is to empower every person and every organization on the planet to achieve more (Annual Report, 2018)”.
It generates revenue by licensing and supporting a large array of software products; offering a wide range of cloud-based and other services to individuals and business enterprises; designing, manufacturing, and selling devices; and through relevant online advertising to a global audience. Most significant among Microsoft’s expenses are those related to employee compensation; designing, manufacturing, marketing, and sales of products and services; datacenter costs that support its cloud-based services; and income taxes.
The most significant product categories which generate the highest part of the company’s revenue are Office products and cloud services, Server products and cloud services, Windows, Gaming, Search advertising, enterprise services, Devices, Linked In and Others. On December 8, 2016, Microsoft completed the acquisition of LinkedIn Corporation for $27.0 billion.
Annual reports (form 10k) Microsoft