Microsoft’s business is varied and complex, but what are its products and services? What acquisitions have it made? How does Microsoft use open source software to improve its products and services? Here are some interesting facts about Microsoft. Let’s start with its gaming division. The Xbox game console was launched in 2001, competing with competitors such as Sony and Nintendo. The company later released the Xbox 360 in 2005, and the Xbox One in November 2013. The Xbox Series X and S were released in November 2013, and the next versions of the console are scheduled to be available in November 2020. Microsoft’s Surface line of tablet computers includes hardware that is bundled with its Windows operating system. The Surface tablet was introduced in 2012, and several subsequent models have been introduced since. In 2008, Microsoft entered the public cloud market with Windows Azure. Windows Azure competed with other public cloud services, such as Amazon Web Services and Google Apps.
Microsoft’s business model is based on forming economic moats around core business segments. Revenue from Windows and Office software are the main drivers of the company’s overall revenue. Revenue from gaming and internet advertising is the second largest segment, at 12 per cent. It is unclear exactly how much of Microsoft’s revenue comes from these two segments, but they are still major drivers of the company. However, the business model is not entirely geared towards these two segments.
While Microsoft has traditionally been a business focused on enterprise customers, it is increasingly becoming involved in large government contracts. Microsoft’s recent deal with the US Department of Defense to provide specialized AR glasses for soldiers is an example. However, a recent complaint filed by Amazon led the Department of Defense to scrap the contract with Microsoft, opting for a multi vendor approach. As a result, Microsoft now only makes about a third of its revenues from these businesses.
The company’s products include personal computers, laptops, tablets, Xbox and Windows phones. Microsoft also sells basic software and third-party applications, such as Word, Excel and PowerPoint. Its products also include free and proprietary applications, such as Drawboard PDF. The company’s success lies in forming economic moats around its key business segments. For instance, its Office suite accounts for 69% of its total revenue, while its Windows and Xbox games contribute the remainder.
The company has failed to state its standards for quality control in the reproduction of its products. Specifically, Microsoft has failed to state acceptable levels of deviation in manufactured copies of its software units or diskette labels. The company fails to make these standards public, and as a result, the copies are illegal. Nevertheless, Microsoft’s lawsuit is a good example of the problem with copyright laws. In addition, copyright laws require that companies comply with a certain set of quality controls.
After successfully launching a cloud-based application, the company plans to continue to expand its cloud business with more acquisitions. On March 16, 2021, Microsoft acquired The Marsden Group, an industrial technology innovation firm that helped enterprise customers visualize prototypes and implement solutions. This acquisition could help Microsoft create new customer value through deep industry solutions and Microsoft’s edge products. The acquisition is expected to boost Microsoft’s revenue from cloud-based applications.
While the company must gain approval from Activision shareholders and regulators for this acquisition, it has a good deal of cash to spend on gaming. The acquisition of Activision Blizzard represents more cash than Microsoft spent on previous acquisitions in the gaming sector. As a result, Phil Spencer, the new CEO of Microsoft, is expected to use that cash to continue beefing up the Xbox gaming division. Microsoft already owns popular games such as Call of Duty, Diablo, and World Warcraft. With this acquisition, Microsoft will have a huge advantage over rivals like Sony, Tencent, and Take-Two.
Its open source projects
While many software developers have blasted Microsoft’s stance on open source, the company has done some things to promote open source. First, it has released a version of Windows Installer XML under an open source license. Microsoft also participated in LinuxTag in Germany, released the R programming language under an open source license, and launched CodePlex, a site where open source software can be shared. Since then, Microsoft has actively supported open source projects.
In addition to its involvement in open source projects, Microsoft also sponsors some of these. Glimpse, for example, is an open-source development environment for Microsoft’s Visual Studio. Microsoft also supports other open-source operating systems. In order to support such projects, the company will continue to accept contributions from outside the company. This way, it will be able to benefit from their expertise while also improving the software available for the public.