Microsoft Business Operation Model

Its pretty interesting if you observe the Microsoft business operation model. As you know product companies business operation model is different from Service companies.

I am familiar with business structure of Service companies. Here is my research on one of the worlds best technology product based company Microsoft.

Their business is mainly divided into 5 core groups.

1. Client: This is about windows operating system. If I am not wrong, this one along with MS office is 50% of Microsoft revenue. Its dominant in Client OS market till date. Chrome OS, Mac OS , Linux might be some of its competitors.

2. Server and Tools: This is one of such businesses in Microsoft which is growing in double digit from last couple of years. This business includes Windows server OS, SQL Server, Visual Studio and other server related tools. Any one working in Dotnet would dream of going into this business in Microsoft. Bob Muliga is the head of this unit. Needless to say I dreamed and failed.

3. Online Services Business: This business unit is all about online things like MSN, Bing. This is under severe competition in market from Google and Yahoo. This Business yet to make its mark in the industry.

4. Microsoft Business Division: This is about MS Office , one of the most successful product from Microsoft. Its having little competition from IBM. Microsoft is the single largest dominant vendor in this field.

5. Entertainment Division: This is is all about Xbox, Zune and other gaming devices. This is having competition from Apple Ipod and PlayStation products.

Apart from this some interesting facts are Microsoft spends 15% of its revenue in R&D. Its having 60+ billion dollar business turnover and this year they spent nearly 9 billion dollars in R&D. They have R&D facilities in Redmond, India, UK and one other place (not sure which one).

Microsoft has head count of 93,000 employees all over the globe. Only 56,000 in US, rest around the world.

Most fascinating fact about Microsoft is, they are dependent on their product rather than their employees. On the other hand Services companies depend on employees for revenue. For example TCS might be having some where around 6 billion dollar business with 1,40,000+ employees. Microsoft has 60+ billion dollar business with 93,000 employees.

As a hardcore fan of Microsoft I did this little research, some facts might not be update and accurate. Author is not responsible or can not be quoted  :-0

Happy Reading !!!

Comments

sandy said…
Good one surya ..Its really a useful info...the employee and product comparison was gr8

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