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Chart: How Microsoft views its business today — and what’s really going on
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Chart: How Microsoft views its business today — and what’s really going on

chartKevin Turner, Microsoft’s chief working officer, made the opening remarks on the firm’s Monetary Analyst Assembly in Bellevue, Wash., this afternoon — giving a broad overview of the corporate’s business.

“Whereas this business faces some headwinds within the PC market … now we have an unimaginable transition that’s underneath approach,” he mentioned.

One of many early factors Turner made was that the corporate has a extra “balanced and numerous” business than folks may anticipate — as evidenced by the truth that Home windows truly isn’t the corporate’s largest line of income. The truth is, it’s third, as demonstrated by this slide above, proven by Turner throughout his remarks.

That is notable, but it surely truly isn’t new. The Microsoft Business (Workplace) Division surpassed the Windows Division in revenue in 2011, and the Server & Instruments Division moved into the No. 2 slot in 2012.

What the slide doesn’t present is that working revenue within the Home windows Division actually fell last fiscal year, to $9.5 billion, from $11.5 billion the yr earlier than. That is the elemental transition going down in Microsoft’s business, as the corporate shifts from the terribly excessive revenue margins of a pure-play software program enterprise to the decrease margins of a “gadgets and companies” firm — making and promoting its personal Floor tablets, on this case.

Put one other approach: Not solely is Home windows turning into a smaller proportion of Microsoft’s income, however Home windows’ income are declining, as properly, not solely as a proportion of the income but in addition in uncooked numbers.

Turner went on to focus on momentum throughout a variety of areas, together with on-line companies resembling Skype and subscription merchandise resembling Workplace 365. His full deck is available here.

The webcast crashed towards the top of Turner’s discuss, as a result of an influence outage on the venue, and the corporate says it’s taking a break to revive the feed.

Keep tuned for extra from the occasion when it continues, however don’t anticipate any information on the CEO entrance: CFO Amy Hood made it clear on the outset that the corporate wouldn’t be making any bulletins today about Steve Ballmer’s successor.

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