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Microsoft changes reporting structure

Simon Quicke

Microsoft has outlined how its reporting structure will change as part of its major reorganisation efforts and  talked up its sales in the enterprise arena and flexed its muscles against rivals Google and VMware.

In the past the software vendor has shared revenues and income numbers for five divisions: Windows, business which includes Office, servers and tools, online services and entertainment and devices. But that will change as a result of the reorganisation that has been running over the past few months.

The vendor will still report on five business segments but the list will change with hardware, licensing and other coming under a broad devices and consumer umbrella that will include Surface and Xbox. The remaining couple will fall under a commercial heading and include licensing and other which will include Windows and Office sales as well as the cloud Azure efforts and Office 365.

"The reorganization that we did was more than just let's move some people around. It really was a fundamental shift from running a set of separate business units where we tried to make connection points to running a company that is essentially one integrated entity," said Steve Ballmer, CEO of Microsoft.

In a webcast with analysts last night the vendor's COO Kevin Turner said the user base for Office 365 had grown by 350% in the last fiscal year and it had won back hundreds of customers that had been using Google's alternative. There was also time for the vendor to take a swipe at VMware with the claim that its Hyper-V platform was growing at three times the speed of its rival's vSphere.

The firm also gave a breakdown of its revenue sources with enterprise contributing 55%, consumer and online services 20%, 19% from OEM licenses and 6% from SMEs.


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