What is going to happen with Microsoft cloud servers with the recent loss of Ray Ozzie leaving? So Motley Fool looked up all the numbers and did a lot of this article so I really have to give them credit. I still put up my own spin on the article thought! I think it’s a very fair question to put up. What will happen with Microsoft with him gone? He headed up the cloud server dept and this will surly hurt Microsoft.
| Business Segment |
Fiscal 2010 Revenue* |
Fiscal 2009 Revenue* |
Fiscal 2008 Revenue* |
| Windows & Windows Live Division |
$17,800 |
$14,690 |
$16,815 |
| Server and Tools Division |
$14,878 |
$14,276 |
$13,217 |
| Online Services |
$2,198 |
$2,110 |
$2,164 |
| Microsoft Business |
$18,909 |
$18,864 |
$18,904 |
| Entertainment and Devices |
$8,114 |
$8,035 |
$8,502 |
| Corporate and Other |
$597 |
$462 |
$818 |
| TOTAL |
$62,484 |
$58,437 |
$60,420 |
Source: Capital IQ, a division of Standard & Poor’s.
* Numbers in millions.
The only consistent growth part of this by revenue is cloud server and cloud hosting tools, which includes Windows Server and Microsoft’s cloud server program, Windows Azure.
The numbers don’t change much when you head further down the income statement:
|
Business Segment
|
Fiscal 2010 Operating Income* |
Fiscal 2009 Operating Income* |
Fiscal 2008 Operating Income* |
| Windows & Windows Live Division |
$12,089 |
$9,569 |
$11,876 |
| Server and Tools Division |
$4,990 |
$4,638 |
$3,845 |
| Online Services |
($2,436) |
($1,760) |
($619) |
| Microsoft Business |
$11,664 |
$11,454 |
$11,681 |
| Entertainment and Devices |
$589 |
($3) |
$314 |
| Corporate and Other |
($2,798) |
($3,535) |
($4,826) |
| TOTAL |
$24,098 |
$20,363 |
$22,271 |
Source: Capital IQ, a division of Standard & Poor’s.
* Numbers in millions.
What does this mean for Microsoft? Well, the cloud server division, the one that is earning the most money and potential to deliver the huge growth in the coming months for Microsoft is the group Ray Ozzie has been most closely associated with. I don’t know a ton about stocks but I would say that this is a huge blow for Microsoft and all investors.
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