Full Description

Microsoft Corporation, incorporated in 1981, is engaged in developing, manufacturing, licensing, and supporting a range of software products and services for different types of computing devices. The Company operates in five business segments: Client, Server and Tools, Online Services Business, Microsoft Business Division, and Entertainment and Devices Division. The software products and services include operating systems for servers, personal computers, and intelligent devices; server applications for distributed computing environments; information worker productivity applications; business solutions applications; computing applications; software development tools, and video games. The Company provide consulting and product and solution support services, and trains and certifies computer system integrators and developers. It also designs and sells hardware, including Xbox 360 video game console, the Zune digital music and entertainment device, and peripherals. Online offerings and information are delivered through Bing, Windows Live, Office Live, the MSN portals and channels, and the Microsoft Online Services platform, which includes offerings for businesses, such as Microsoft Dynamics CRM Online, Exchange Hosted Services, Exchange Online, and SharePoint Online.

On April 24, 2008, the Company completed the acquisition of Fast Search & Transfer ASA (FAST). In April 2008, the Company completed the acquisition of Danger, Inc. (Danger). In June 2008, the Company announced the acquisition of Navic Networks, a provider of television advertising solutions. Navic will join Microsoft's Advertiser and Publisher Solutions (APS) Group. In September 2008, the Company closed the acquisition of DATAllegro Inc. In October 2009, Publicis Groupe S.A. acquired Razorfish from Microsoft. Pursuant to the acquisition, Razorfish will be a wholly owned subsidiary of Publicis Groupe and will be a part of VivaKi, the Publicis Groupe media and digital umbrella encompassing Starcom MediaVest Group, ZenithOptimedia, Denuo, Digitas and VivaKi Nerve Center.

Client

The Client segment has the overall responsibility for technical architecture, engineering and delivery of the Windows product family and is responsible for the relationships with personal computer manufacturers, including multinational and regional original equipment manufacturers (OEMs). The Client offerings consist of premium and standard edition Windows operating systems. The Company’s products in the Client segment includes Windows Vista, including Home Basic, Home Premium, Ultimate, Business, Enterprise, and Starter Edition; Windows XP, including Professional, Home, Media Center, and Tablet PC Edition, and other Windows operating systems.

The Company competes with Apple, Canonical, Red Hat, Google, Mozilla, Opera Software Company, Hewlett-Packard and Intel in this segment.

Server and Tools

The Server and Tools segment is engaged in developing and marketing software server products, software developer tools, services, and solutions. Windows Server-based products are integrated server infrastructure and middleware software designed to support software applications built on the Windows Server operating system. Windows Server-based products include the server platform, including targeted segment solutions, database, storage, management and operations, service-oriented architecture platform, and security and identity software. The segment also builds standalone and software development lifecycle tools for software architects, developers, testers, and project managers. Server products can be run on-site, in a partner-hosted environment, or in a Microsoft-hosted environment.

The Company offers a range of consulting services and provide product support services that assist customers in developing, deploying, and managing Microsoft server and desktop solutions. It also provides training and certification to developers and information technology professionals about the Server and Tools, Microsoft Business Division, and Client platform products. The products of the Company in this segment includes Windows Server operating system; Microsoft SQL Server; Visual Studio; Silverlight; System Center products; Forefront security products; Biz Talk Server; Microsoft Consulting Services; Premier product support services, and other products and services.

The Company competes with Hewlett-Packard; IBM; Sun Microsystems; Novell; Red Hat; Oracle; CA, Inc.; Apache; Linux; MySQL; PHP; Geronimo; JBoss; Spring Framework; VMWare; McAfee; Symantec; Trend Micro; Adobe and Borland.

Online Services Business

The Online Services Business (OSB) consists of an online advertising platform with offerings for both publishers and advertisers, online information offerings, such as Bing, MSN Portals and channels, and personal communications services, such as e-mail and instant messaging. During the fiscal year ended June 30, 2009 (fiscal 2009), the Company launched new releases of its advertising platforms, including adCenter and adExpert, and launched a new release of its search engine named Bing. The Company have also updated behavioral targeting tools, launched new releases of MSN properties globally, and added applications and services to the existing Windows Live suite. The products offered by the Company in this segment includes Bing; Microsoft adCenter/adExpert; Microsoft Media Network (MMN); MSN portals, channels, and mobile services; Windows Live suite of applications and mobile services; Atlas online tools for advertisers and publishers; MSN Premium Web Services (consisting of MSN Internet Software Subscription, MSN Hotmail Plus, and MSN Software Services), and Razorfish media agency services.

The Company competes with AOL, Google and Yahoo! in this segment.

Microsoft Business Division

Microsoft Business Division (MBD) consists of the Microsoft Office system and Microsoft Dynamics business solutions. Microsoft Office system products are designed to improve personal, team, and organization productivity through a range of programs, services and software solutions. Microsoft Dynamics products provide business solutions for financial management, customer relationship management, supply chain management, and analytics applications for small and mid-size businesses, large organizations, and divisions of global enterprises. The products of the Company in this segment include Microsoft Office; Microsoft Office Project; Microsoft Office Visio; Microsoft Office SharePoint Server; FAST ESP; Microsoft Exchange Server; Microsoft Exchange Hosted Services; Microsoft Office Live Meeting; Microsoft Office Communications Server; Microsoft Office Communicator; Microsoft Tellme Service; Microsoft Dynamics ERP products, including AX, NAV, GP, SL, Retail Management System, and Point of Sale; Microsoft Dynamics CRM, and Microsoft Dynamics CRM Online.

The Company competes with Adobe, Apple, Corel, Google, IBM, Novell, Oracle, Red Hat, Zoho, IBM, Sun Microsystems, 37Signals, Adobe, AjaxWrite, gOffice, ShareOffice, SocialText, ThinkFree, Zoho, Intuit, Sage, SAP, Salesforce.com, Autonomy, Cisco and Endeca in this segment.

Entertainment and Devices Division

The Entertainment and Devices Division (EDD) is responsible for developing, producing, and marketing the Xbox video game system, including consoles and accessories, third-party games, games published under the Microsoft brand, and Xbox Live operations, as well as research, sales, and support of those products. In addition to Xbox, EDD offers the Zune digital music and entertainment device and accessories; personal computer (PC) software games; online games; Mediaroom, the Internet protocol television software; the Microsoft Surface computing platform and mobile and embedded device platforms.

EDD is also engaged in the development of consumer software and hardware products, including application software for Macintosh computers and Microsoft PC hardware products, and is responsible for all retail sales and marketing for Microsoft Office and the Windows operating systems. The products of the Company in this segment includes Xbox 360 console and games; Xbox Live; Zune; Mediaroom; numerous consumer software and hardware products (such as mice and keyboards); Windows Mobile software and services platform; Windows Embedded device operating system; Windows Automotive, and the Microsoft Surface computing platform.

The Company competes with Nintendo, Sony, Apple, Google, Nokia, Openwave Systems, Pal, QUALCOMM, Research In Motion, Symbian, IBM, Intel, Metrowerks and MontaVista Software.