Microsoft Corporation engages in the development, manufacture, license, and support of software products for various computing devices.
The company’s software products include operating systems for servers, personal computers, and intelligent devices; server applications for distributed computing environments; information worker productivity applications; business solution applications; computing applications, and software development tools.
The company provides consulting and product support services. The company sells the Xbox 360 video game console and games, PC games, and peripherals. Online offerings and information are delivered through its Windows Live, Office Live, and MSN portals and channels. The company does business throughout the world and has offices in approximately 100 countries.
Divisions
The company operates its business in three divisions – Platforms and Services, Microsoft Business, and Entertainment and Devices. The company’s Platforms and Services division comprises client, server and tools, and online services business.
PLATFORMS AND SERVICES DIVISION
Client
The company’s client segment consists of premium edition operating systems, including Windows XP Professional, Media Center Edition, Tablet PC Edition, and other standard Windows operating systems, including Windows XP Home. Premium offerings are Windows operating systems sold at a premium above Windows XP Home.
The company’s client segment has overall responsibility for the technical architecture, engineering, and product delivery of its Windows product family, and is responsible for its relationships with personal computer manufacturers, including multinational and regional original equipment manufacturers (OEMs). The client segment includes sales and marketing expenses for the Windows client operating system and product development efforts for the Windows platform. The next generation of the Windows operating system, Windows Vista, is under development. Windows Vista includes advances in security, digital media, user interfaces, and other areas that improve the user and developer experience.
Products and Services: The company’s client segment offers Windows XP Professional and Home; Media Center Edition; Tablet PC Edition; and other standard Windows operating systems.
Server and Tools
Server and Tools segment develops and markets Windows Server products, including Windows Server operating systems. Windows Server products are integrated server infrastructure software that is designed to support end-to-end software applications and tools built on the Windows Server 2003 operating system. Windows Server products include the server platform, operations, security, applications and collaboration software. The segment also builds software development lifecycle tools for software architects, developers, testers and project managers.
The company offers various consulting services and provides product support services. The segment also provides training and certification to developers and information technology professionals about its Server and PC platform products. Server and Tools also includes the Enterprise Partner Group, which is responsible for sales, partner management and partner programs for medium and major organizations; and the Public Sector sales and marketing organization.
Server and Tools segment consists of server software licenses and client access licenses (CAL) for Windows Server, Microsoft SQL Server, Exchange Server and other server products. It also includes developer tools, training, certification, Microsoft Press, Premier and Professional product support services, and Microsoft Consulting Services. Server and Tools focuses on licensing products, applications, tools, content and services.
Products and Services: The company’s server and tools segment offers various products, including Windows Server operating system; Microsoft SQL Server; Microsoft Consulting Services; product support services; Visual Studio; System Center products, Forefront security family of products; and Biz Talk.
Online Services Business
The company’s online services business includes the former MSN segment and Windows Live. Its products include MSN Search, MapPoint, MSN Internet Access, MSN Premium Web Services, MSN Mobile Services, and Windows Live.
MSN: MSN provides personal communications services, such as e-mail and instant messaging, and online information offerings, such as MSN Search, MapPoint, and the MSN portals and channels around the world. MSN also provides various online paid offerings. MSN manages many of its own properties, including health, autos, and shopping. MSN also creates alliances with third parties for many channels, including CareerBuilder.com, Expedia.com, Foxsports.com, Match.com, and MSNBC.com.
MSN includes personal communications services, such as e-mail and instant messaging, and online information offerings, such as MSN Search, and the MSN portals and channels around the world. MSN also provides various online paid services in addition to MSN Internet Access and MSN Premium Web Services. In 2006, the company launched MSN adCenter – its internally developed advertising platform – in certain international markets and throughout the U.S. where it serves 100% of paid search traffic on its online properties. In 2006, the company announced Windows Live, a set of Internet services and software designed to improve the users’ connected experience and it released Windows Live Messenger to consumers in 58 countries.
Products and Services - The company’s MSN segment offers MSN Search; MapPoint; MSN Internet Access; MSN Premium Web Services (consisting of MSN Internet Software Subscription, MSN Hotmail Plus, MSN Bill Pay, and MSN Radio Plus); Windows Live; and MSN Mobile Services.
Windows Live: In 2006, the company introduced Windows Live and Office Live, which provides small businesses with Internet-based business services hosted by Microsoft. The company rolled out new search services, including beta releases of Windows Live Search and Windows Live Academic Search. The company introduced new and enhanced services for computer safety and computer maintenance (Windows Live SafetyCenter and Windows Live OneCare), communications (Windows Live Mail and Windows Live Messenger), and entertainment (Xbox Live). The company also created Live Labs, an applied research program that targets Internet products and services.
MICROSOFT BUSINESS DIVISION
Microsoft Business Division includes the former Information Worker and Microsoft Business Solutions segments, and the Exchange Server business.
Microsoft Business Solutions
Microsoft Business Solutions provides business management software solutions targeted to businesses of varying sizes. The main products consist of enterprise resource planning (ERP) solutions, customer relationship management (CRM) software, retail solutions, Microsoft Partner Program (MSPP), and related services. Microsoft Business Solutions also includes the Small and Mid-market Solutions and Partners (SMS&P), which focuses on sales to customers and partners in the small and mid-market customer segments.
Microsoft Business Solutions are responsible for Microsoft Dynamics brand business applications for small and mid-size businesses, major organizations and divisions of global enterprises. It offers financial management, customer relationship management, supply chain management, and analytics applications. The solutions are delivered through a worldwide network of channel partners and independent software vendors that provide services, additional related software, and local support.
Products and Services: The company’s Microsoft business solutions segment offers Microsoft Dynamics AX; Microsoft Dynamics CRM; Microsoft Dynamics GP; Microsoft Dynamics NAV; Microsoft Dynamics SL; Microsoft Dynamics Retail Management System; Microsoft Partner Program; and Microsoft Office Small Business Accounting.
Information Worker
Information Worker segment consists of the Microsoft Office system of programs, services, and software solutions designed to increase personal, team, and organization productivity. The company expands its product offerings in other information worker areas, such as enterprise content management, collaboration, unified messaging, and business intelligence.
Information Worker primarily consists of the Microsoft Office system of programs, servers, solutions, and services designed to increase personal, team, and organization productivity. Information Worker includes Microsoft Office, Microsoft Project, Microsoft Visio, SharePoint Portal Server CAL, and other information worker products including Office Communications Server and OneNote.
Products and Services: The company’s information worker segment offers Microsoft Office; Microsoft Project; Microsoft Visio; SharePoint Portal Server client access licenses; Microsoft LiveMeeting; OneNote; and Office Communication Server.
ENTERTAINMENT AND DEVICES DIVISION
Entertainment and devices division includes the former Home and Entertainment and Mobile and Embedded Devices segments.
Mobile and Embedded Devices
Mobile and Embedded Devices segment develops and markets products that extend the Windows platform to mobile devices such as PDAs and phones, and to embedded devices. The mobile and embedded devices segment is also responsible for managing its company-wide sales and customer relations with device manufacturers and other communication-sector customers, which includes network service providers and media and entertainment companies. Windows Embedded is a suite of operating systems, tools, and technologies that are specifically designed for embedded devices.
Mobile and Embedded Devices includes Windows Mobile software, Windows Embedded operating systems, and Windows Automotive. These products extend the advantages of the Windows platform to mobile devices, such as PDAs, phones, and various embedded devices. The business is also responsible for managing sales and customer relationships for Microsoft overall with device manufacturers and communication sector customers. The communication sector includes network service providers, such as wireless, wireline and cable operators; and media and entertainment companies.
Products: The company’s mobile and embedded devices segment offers Windows Mobile software platform; Windows Embedded device operating system; and Windows Automotive.
Home and Entertainment
Home and Entertainment is responsible for development, production, and marketing for the Xbox video game system, including consoles and accessories, third-party games, games published under the Microsoft brand, and Xbox Live operations, research, and sales and support. In addition to Xbox, the company offers various types of entertainment products, including PC software games, online games, and other devices.
The home and entertainment segment also leads the development efforts of its Consumer Productivity Experience Group (CPxG), which includes Microsoft’s line of consumer software and hardware products, such as the Encarta line of learning products and services, application software for Macintosh computers, and Microsoft PC hardware products, such as mice and keyboards.
In addition, the segment carries out all retail sales and marketing for Microsoft Office and the Windows operating systems (for which it receives an inter-segment commission), Xbox, PC games, and CPxG products. It also engages in the development, sales, and deployment of Microsoft’s TV platform products for the interactive television industry, including MSTV Foundation Edition and Internet Protocol TV products. The company’s Xbox business is transitioning to a new console, the Xbox 360, which launched in 2006.
Products and Services: The company’s home and entertainment segment offers Xbox 360; Xbox; Xbox Live; CPxG (consumer software and hardware products); and IPTV.
Significant Events
In June 2007, Indiagames Ltd. has formed a partnership with Microsoft Entertainment and Devices Division for its gaming and digital entertainment system, the Xbox 360. Both Indiagames and Microsoft have existing gaming communities in the form of Tadka Live and Xbox live respectively.
The company and Analog Devices, Inc. announced that they are further expanding options for embedded developers through the porting of the Microsoft .NET Micro Framework to Analog Devices' Blackfin processors.
Telekom Slovenije d.d. and the company have signed a long-term partnership agreement on strategic cooperation. The agreement covers the transfer of know-how and information services, value-added services, productivity and information management, infrastructure and IT services, and business-technical cooperation.
In May 2007, CRE8 Limited announced that it has signed a worldwide agreement with Microsoft Corp. to jointly develop mobile solutions.
In May 2007, the company and SAP AG announced a joint offering that would simplify and accelerate customer adoption of Microsoft SQL Server 2005 and optimize it for SAP Business Suite. SAP and Microsoft have also agreed to set up a joint lab in Walldorf, Germany to further optimize SAP Business Suite on SQL Server 2005.
Glu Mobile, Inc. has entered into an agreement with Microsoft Corp. to develop and publish a mobile adaptation of 'Age of Empires III'. Through the agreement, Glu has secured worldwide rights to develop and publish a mobile game based on 'Age of Empires III'.
In February 2007, the company announced the formation of the Microsoft Business Process Alliance, which extends the benefits of business process management (BPM) to various companies and offers improved functionality to existing Microsoft customers. The Business Process Alliance is a group of ten software vendors focused on making BPM solutions accessible and helping companies take advantage of BPM tools based on the Microsoft platform. Through this alliance, a range of customers would benefit from a set of tools for automating and optimising business processes. The initial members of the BPA are AmberPoint, Inc., Ascentn, IDS Scheer AG, Fair Isaac Corp., Global360, Inc., InRule Technology, Inc., Metastorm, Inc., PNMsoft, RuleBurst Limited and SourceCode Technology Holdings. Microsoft also announced enhancements to its Windows Workflow Foundation technology in the .NET Framework 3.0, adding support for the upcoming BPEL 2.0 standard and further providing capabilities and tools for developers and independent software vendors building BPEL-enabled work-flow applications.
The company has formed a joint venture in Beijing with Tata Consultancy Services Limited and three mainland partners. The new venture would set up a yuan-denominated forwards trading system for the China Foreign Exchange Trade System, a central bank-held platform for interest rate and foreign exchange products.
WizKids LLC has an agreement with Bungie Studios and Microsoft Corp. to develop a collectable miniatures game (CMG) called Halo ActionClix. The Halo ActionClix CMG brings the incredible content of the Halo universe to the tabletop through the Clix miniatures game engine.
Tyler Technologies, Inc. has entered into a strategic alliance with Microsoft Corp. to develop core public sector functionality for Microsoft Dynamics AX to address the accounting needs of public sector organizations worldwide. The co-development would enhance the functionality of Microsoft Dynamics AX, providing both Tyler and Microsoft with a public sector accounting platform to support their existing and prospective clients into the future.
Silicon Graphics, Inc. and Microsoft Corp. have entered into an agreement to offer Microsoft Windows Compute Cluster Server 2003 on SGI Altix XE cluster systems based on quad-core and dual-core Intel Xeon processors. The OEM agreement targets the media data management; industrial design, such as automotive and aerospace; healthcare; and government and academic markets.
Microsoft Corp. launched three computer programmes and systems in Egypt. The three programmes include the Windows Vista operation system, Microsoft Office System 2007 and electronic Exchange server 2007.
Amoi Electronics Co., Ltd. has a joint venture with Texas Instruments, Inc. and Microsoft Corp. to offer cheap Windows-based smart phones to the mainland's mass market.
Tata Consultancy Services Limited has entered into a joint venture with Microsoft Corp. and three Chinese state-owned companies for a new software development centre based in Beijing. TCS would hold 65% of the venture while three Chinese partners, Uniware and two software parks, would hold 25%. Microsoft would hold the remaining 10%. The new company, which would target the domestic Chinese market, would specialize in providing software services for the banking and financial sector, as well as for manufacturing and telecoms.
Samsung Electronics Co., Ltd. has entered into a strategic alliance with Microsoft Corp. to launch the mobile phone in Asia and Europe to use high-speed HSDPA wireless technology. It is also a smartphone that supports Web applications like podcasts and RSS Feeder. The companies can connect with Wi-Fi and Bluetooth 2.0, was designed for work and play. It has two digital cameras and can be used for 3G video calls.
Microsoft Corp. and Sprint Nextel Corp. have entered into a strategic alliance through which the companies would develop and offer a range of new service offerings for Sprint's business and consumer customers. The first consumer offering in this collaboration enables Sprint customers to use Windows Live Search for mobile on their wireless phones to search location-based content from the Internet, such as nearby stores and restaurants, as well as Sprint's catalog of ring tones, games, screen savers and related services.
Microsoft Corp. and Bharti Airtel, Ltd. have entered into a strategic partnership that would offer a range of software and services for small and medium businesses (SMBs) in the country. The partnership would offer to Indian SMBs Microsoft Solutions for Hosted Messaging and Collaboration. The new professional messaging and collaboration service would enable small businesses access secure enterprise grade e-mail secure instant messaging and Intranet portals.
Quorum Information Technologies, Inc. has entered into a business relationship with Microsoft to promote Quorum's DMS, XSELLERATOR.
Microsoft Corp. and Novell, Inc. have entered into business and technical collaboration agreements on Windows and Linux interoperability and support.
Vignette Corporation has formed a strategic relationship with Microsoft to offer media solutions on the Microsoft Corp. platform. Vignette Next-Generation Web solutions enables multimedia content to be created, managed and delivered to any Internet-enabled device including Windows-based PCs, Windows Mobile powered devices, set-top boxes and the Xbox 360 console.
Hewlett-Packard Co. (HP) has formed a strategic alliance with Microsoft Corp. at the Microsoft Technology Center (MTC) in Dubai, providing businesses with the opportunity to sample and test Microsoft solutions on HP products.
I2 Technologies, Inc. has formed a strategic alliance with Microsoft Corp. to jointly develop i2 Intelligence, a supply chain analytics solution, on the Microsoft technology platform. As a part of this alliance, i2 and Microsoft would jointly develop i2's supply chain management solutions on the Microsoft.NET Framework, integrating with the Microsoft Office System and a range of other Microsoft technologies, including 32-bit and 64-bit versions of Microsoft Windows Server 2003, Microsoft SQL Server and Microsoft Office SharePoint Server.
Ingenio, Inc. has entered into an agreement with Microsoft Corp. that enables Ingenio Pay Per Call listings on Windows Live Search for mobile. When mobile users search for local business information, such as restaurants, travel and hotel information or other local services, relevant Ingenio Pay Per Call advertisers appear within these results. Windows Live Search offers personal search services that enables consumers find what they are looking for on the Web, their desktop, their mobile device or in their local geographic area, such as instant answers, documents, pictures, multimedia content, local information and maps.
Significant Events
In March 2007, the company and Carnegie Mellon University announced the creation of the Microsoft Carnegie Mellon Center for Computational Thinking. The Microsoft Carnegie Mellon Center for Computational Thinking would support research in core computer science areas using an approach called problem-oriented explorations by Carnegie Mellon's ALADDIN Center. In addition, the center would develop and disseminate courses and curricula suitable for graduate and undergraduate students, as well as K-12 classes.
Videsh Sanchar Nigam, Ltd. has entered into a collaboration with MICROSOFT to launch ReadyAccess Business Messaging and Collaboration services for small and medium enterprise (SME) segment.
The company has formed an alliance with Paladyne Systems LLC to service the hedge fund industry with the PALADYNE product line powered by the Microsoft software development platform. Paladyne would have access to the technology offerings and related support services within Microsoft to enhance its product offering to the hedge fund marketplace.
The company has signed a strategic cooperation agreement with Shanghai Baosight Software Co. Ltd. The companies would collaborate in solutions development, technology, software outsourcing and training.
The company and has signed an agreement with Alibaba.com Corporation to cooperate in e-commerce and information technology services for medium and small enterprises. Under the terms of the deal, the two companies would co-develop online services for e-commerce, enterprise management, office automation systems and enterprise communication, which will be launched through Alibaba's online software platform.
Sales, Marketing, and Distribution
The company’s geographic sales and marketing organizations are the North American Region; the Latin American Region; the Europe, Middle East, and Africa Region (EMEA); Japan; the Asia-Pacific Region; and Greater China.
The company distributes its products primarily through the following channels - OEM; distributors and resellers; and online. Some of the company’s distributors include Ingram Micro and Tech Data, and some of its major resellers include CDW, Dell, Insight Enterprises, Software House International, and Software Spectrum. The company distributes its finished goods products primarily through independent non-exclusive distributors, authorized replicators, resellers, and retail outlets. Individual consumers obtain its products primarily through retail outlets, including Best Buy, Target, and Wal-Mart.
Customers
The Company’s customers include individual consumers, small and medium-sized organizations, enterprises, governmental institutions, educational institutions, Internet Service Providers, application developers, and OEMs.
The company has OEM agreements covering one or more of its products with major PC OEMs, including Acer, Dell, Fujitsu, Fujitsu Siemens Computers, Gateway, Hewlett-Packard, Lenovo, NEC, Samsung, Sony, and Toshiba.
Competition
Client: The company’s competitors include Apple Computer, Hewlett-Packard, IBM, Sun Microsystems, and Mozilla. Its competitors for the Windows Media Player include Apple Computer and Real Networks.
Server and Tools: The company competes with integrated computer manufacturers, such as Hewlett-Packard, IBM, and Sun Microsystems. Commercial software developers that provide competing server applications for PC-based distributed client/server environments include CA, IBM, and Oracle. The company’s System Center competes with BMC, CA, and IBM in the Management of IT infrastructures, while Forefront Security competes with McAfee, Symantec, and Trend Micro. The company’s products for software developers compete against offerings from Adobe, BEA Systems, Borland, IBM, Oracle, and Sun Microsystems.
Information Worker: Competitors to the Microsoft Office system include many software application vendors, such as Apple, Corel, Google, IBM, Novell, Oracle, Red Hat, Sun Microsystems, and local application developers in Europe and Asia. The company also competes with WebEx, and various business intelligence vendors, such as Business Objects, Cognos, and Hyperion.
Microsoft Business Solutions: The company competes with vendors concentrated on small and mid-market business solutions, such as Intuit and Sage. The company also competes with primary vendors, including Oracle and SAP.
MSN: MSN competes with AOL, Google, Yahoo!, and various Web sites and portals. MSN also competes for narrowband Internet access users with AOL, Earthlink, and other ISPs for dial-up Internet access in the United States.
Mobile and Embedded Devices: Windows Mobile software faces competition from Nokia, Openwave Systems, Palm, QUALCOMM, Research In Motion, and Symbian. The company’s other key competitors include IBM, Wind River, and versions of embeddable Linux from commercial Linux vendors, such as Metrowerks and MontaVista Software. The telematics market is also fragmented, with competitive offerings from IBM and automotive suppliers building on various real-time operating system platforms from commercial Linux vendors, QNX Software Systems, Wind River, and others.
Home and Entertainment: The company’s Xbox hardware business competes with console platforms from Nintendo and Sony.
History
Microsoft Corporation was founded in 1975.
