If we are really in the post-PC era, then one of two things will happen. Either Microsoft will make a big success of non-PC products, or it will start delivering shocking financial results. Neither is yet true. Here are the results just announced, broken down into a simple table.
Quarter ending December 31st 2011 vs quarter ending December 31st 2010, $millions
|Client (Windows + Live)||4736||-320||2850||-64|
|Server and Tools||4772||+484||1996||+285|
|Entertainment and devices||4237||+539||528||-138|
A few observations. Server revenue (though not profit) exceeded client revenue; I am not sure if this is the first time it has done so, but it is unusual. The Office division enjoyed a remarkable quarter, and the press release mentions 10% growth in Exchange and SharePoint, and 30% growth (from a smaller base) in Lync and Dynamics CRM. Azure? Not mentioned so I presume revenue is small.
Where is Office 365? Somewhere in the Office figures I would guess; and once again, since it is not mentioned, I think we can assume it is not delivering a large amount of revenue yet. I would like to know more though.
What Microsoft calls Online is formed of Bing search and services and advertising income. Another hefty loss, but revenue is up, loss somewhat reduced, and Microsoft claims that “Bing-powered US market share, including Yahoo! properties, was approximately 27%”. Not bad.
This is the big quarter for gaming and Xbox delivered accordingly. The faltering Windows Mobile and Windows Phone 7 are somewhere lost in those Xbox numbers, and again its revenue is not mentioned in the press release.
- Microsoft financials: Office and server dominate as Windows falters
- Microsoft financials: Server and Office business still growing
- Microsoft financials: nearly a $billion lost on Surface RT but prospering in server and cloud
- Microsoft’s growth areas: Azure, Server with Hyper-V, Office 365, Windows Phone
- Microsoft financials: record revenue, signs of Windows 8 concern