Microsoft: 55 percent of company is enterprise-based

Microsoft rarely gives out information on the structure of its company, but today, as part of its financial analyst day, Chief Operating Officer Kevin Turner gave a glimpse of how big each of its divisions are and how much revenue it gets from its customers.

Turner announced that 55 percent of Microsoft's revenue comes from its enterprise customers, compared to 20 percent from its consumer businesses and 19 percent from its OEMs. Only six percent of Microsoft's revenues comes from small and mid-size businesses.

In terms of each division, Turner said that 32 percent of its revenue comes from its Office division, with Servers and Tools coming in second with 26 percent. The Windows division is a close third with 25 percent. 13 percent of Microsoft's money is from its Entertainment and Devices division, which includes the Xbox business. Just four percent of its revenue comes from the company's Bing and online divisions.

The U.S. and Canada still dominate Microsoft's market share, with 44 percent of the company's money coming from just those two countries, with the rest of the world bringing in the other 56 percent.

Source: Microsoft | Image via Microsoft

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Interesting data. 55% of their revenue is from enterprise operations; yet Microsoft continues to alienate them with Windows-8 and its obsession with a touch-centric UI. Talk about pandering to 20% of the revenue base. What ever happened to giving users a choice?? An excellent example of arrogance at work or shooting oneself in the foot.

"Only six percent of Microsoft's revenues comes from small and mid-size businesses." This is a very misleading statement since most small and medium businesses purchases computers and programs from OEM's, System Builder partners, online from sites like NewEgg, or retail stores. Microsoft is still making money on each sale, just not all of the money.

I would think the OEM license would be included in that. I haven't built one in a while but I think it was around $100. SMBs just don't spend a lot of money on IT as their needs are pretty simply and off the shelf.

This makes Microsoft's strong push to consumer first all that much more risky...

The next President & CEO has their work cut out for them that's for sure.

So, will 8 and 8.1 of windows appeal to enterprise?

we shall see. since we were just told in this article that 55% of it's business is geared toward enterprise.

chrisj1968 said,
So, will 8 and 8.1 of windows appeal to enterprise?

we shall see. since we were just told in this article that 55% of it's business is geared toward enterprise.

By Enterprise they mean quite a lot more services and software than Windows 8 - mostly things like Windows Server for which a single license can range from over 3x (Essentials) to over 30x (Datacenter) the price of a single Windows 8 license. Also there's SQL Server which can run up to over 60x times a single Windows 8 license for the Enterprise edition ($8K+). On top of that most companies run tens, hundreds or even thousands of servers. Granted a lot of these big guys get severely discounted prices but you get the idea... Not to mention the killing they're making off Azure - just the company I work for pays them $1000+ each month and we are still in the testing phase of our software we are developing - when we go full speed we expect over $5K-$10K monthly bill in the beginning. Then there's MSDN where a yearly subscription can run up over $12K... and that's not all... So when you do the math Windows licenses barely matter in that world

Edited by Obry, Sep 20 2013, 12:26am :

They are a large and diverse company, this only reinforces that idea.

It really does show how much a CEO has to deal with at MS. I guess that's why the next CEO pick is so important.

This also shows that the new CEO has to make sure he puts in the best and brightest to head up each division so that those people that directly work in each area can make the most of it and not get slowed down by corporate red tape or in fighting.

MS has a lot of important projects going forward, so they need to step up.