Windows 10: Microsoft's recent history with consumer products and services


  1. Posts : 28,495
    64-bit Windows 10 Pro build 17650
       26 Feb 2018 #1

    Microsoft's recent history with consumer products and services


    In the Satya Nadella era, Microsoft is all business.

    Well, almost all business. Microsoft's gaming division seems pretty healthy these days. Anchored by the Xbox console and some popular game titles, that division brought in nearly $4 billion in revenue in the quarter that ended on December 31, 2017. That's about 13.5 percent of the company's overall revenue that can be attributed directly to customers in search of fun.

    But the Xbox factor is the exception, not the rule. In recent years. Microsoft has aggressively reengineered its business, focusing on enterprise customers and (with the noteworthy exception of the gaming division) moving away from consumer products.

    To get a better idea of where Microsoft is allocating its resources in the Satya Nadella era, I took a close look at the company's most recent quarterly report, released in late January 2018 and covering the final calendar quarter of 2017 (that's Q2 of Microsoft's fiscal year 2018).

    In that quarter, Microsoft reported $28.9 billion in total revenue. Of that amount, about $19 billion (more than 65 percent of the total) came from large corporations and government agencies purchasing on-premises desktop and server software licenses, cloud services, and enterprise consulting services.

    After accounting for the gaming and enterprise segments, that leaves another $6 billion and change coming from other lines of business. Most of that revenue, it turns out, comes from sales of business-related products and services through the consumer channel. Very little of it is tied to consumer products, designed for entertainment rather than productivity.

    This chart shows a breakdown by product category. The tall blue columns represent revenue from business products and services, while orange represents revenue from consumer products...

    Click image for larger version. 

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    Read more: Microsoft's steady retreat from consumer products is nearly complete | ZDNet
      My ComputersSystem Spec


  2. Posts : 3,242
    3-Win-7Prox64 2-Win10Prox64
       27 Feb 2018 #1

    Hi,
    Nearly 2 billion in search advertising is not a drop in the bucket it's in users faces lol
      My ComputersSystem Spec


  3. Posts : 475
    Windows Vista Ultimate x64 Edition
       27 Feb 2018 #2

    I wonder if just possibly, that will mean less telemetry gathering and what now, since now Microsoft's focus is no longer private consumers. Will they perhaps try to reinvigorate Windows Phone, or some other Windows RT variant?

    I think they realize they are late to the game by trying to compete with the likes of Google or Apple.
      My ComputerSystem Spec

  4.    27 Feb 2018 #3

    Jody Thornton said:
    I wonder if just possibly, that will mean less telemetry gathering and what now, since now Microsoft's focus is no longer private consumers. Will they perhaps try to reinvigorate Windows Phone, or some other Windows RT variant?
    It sounds like the company has had enough of getting its fingers burnt with tangibles. The *only* successful Microsoft hardware product I can think of is the 30-yr-old Microsoft Mouse and, after divesting itself of Nokia, I think any resurgence of Windows Phone is unlikely. The developers have been re-purposed and - as we all know - *we* consumers now appear to be the QA team.

    With the failure of the Store (both in revenue and developer support), it also appears MS is caught in a cleft stick. With an eye on Apple's cash mountain, MS appears desperate to force consumers into a similar 'walled garden' approach (including the continuation of trying to lock down Windows slowly but surely to stop us 'tweaking') yet without the required 3rd-party developer support that's fundamental to success.
      My ComputerSystem Spec

  5.    01 Mar 2018 #4

    Jody Thornton said: View Post
    I wonder if just possibly, that will mean less telemetry gathering and what now, since now Microsoft's focus is no longer private consumers. Will they perhaps try to reinvigorate Windows Phone, or some other Windows RT variant?

    I think they realize they are late to the game by trying to compete with the likes of Google or Apple.
    Late or not to compete with others, MS is not going to drop telemetry gathering. They may never reach the likes of Apple, Google, etc., but MS will not say no for $7-8B per year additional revenue*. Especially, when the infrastructure is already in place for this revenue source, the consumers more or less already accepted telemetry, and if anything, it'll continue to grow. Not to mention that MS still has the option of in OS/Apps ads that could boost this revenue source greatly.

    This is just a business decision that influenced by the executive board, Wall Street, stock holders, etc., without much regard to the consumers. And it's not specific to MS, any other business would make the same decision, if given the chance...

    *-The report quotes quarterly earning, roughly $1.8B for three month period. The average daily revenue from this source is about $20M per day.
      My ComputerSystem Spec


 

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