The Productivity and Business Processes will include Office and Office 365 as well as its Dynamics and Dynamics CRM (customer relationship management) online software.
Advertisement
Intelligent Cloud will gather results from Microsoft’s server products including Windows Server, SQL, System Center, Azure and Enterprise Services. The More Personal Computing segment comprises results from Windows operating system licensing, devices including Microsoft Surface and phones, gaming such as Xbox consoles, and search. A CC will be held tomorrow at 12PM ET (webcast) to discuss the change.
Previously, the company’s cloud businesses were included in Microsoft’s commercial segment, which also included Office and Windows business software as well as server products and services.
Microsoft will announce its next set of financial results reflecting the new structure on 22 October and it will be interesting to see if they provide a more cohesive picture on Nadella’s progress.
Microsoft today announced new operating segments for its quarterly financial reporting.
As part of Microsoft’s drive to become a “devices and services company”, in 2013 Ballmer introduced a reporting structure that divided the vendor into six key revenue streams under the banner of two core technology areas. The company intends to help investors to easily come to terms with the proposed changes, by also posting revenue and gross margin figures for the (FY2015) operating segments, though this facility is only provided for the first quarter’s results.
Advertisement
In FY15 Microsoft saw its operating profit decline by more than a third year on year to $18.16m (€16.19m), despite sales rising 7.8 per cent to $93.58m.
