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COMPANY PROFILE
Microsoft Corporation
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PUBLICATION DATE: 25 Jul 2017
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Microsoft Corporation
TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview ........................................................................................................3
Key Facts .........................................................................................................................3
Business Description .....................................................................................................4
History ............................................................................................................................. 5
Key Employees .............................................................................................................26
Key Employee Biographies .........................................................................................28
Major Products & Services ..........................................................................................35
SWOT Analysis .............................................................................................................36
Top Competitors ...........................................................................................................44
Company View ..............................................................................................................45
Locations And Subsidiaries ........................................................................................51
Microsoft Corporation
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Microsoft Corporation
Company Overview
Company Overview
COMPANY OVERVIEW
Microsoft Corporation (Microsoft or "the company") develops, licenses, and supports a range of software
products and services. The company offers products, including operating systems; cross-device
productivity applications; server applications; business solution applications; desktop and server
management tools; software development tools; video games; and training and certification of computer
system integrators and developers. The company operates globally and has offices in more than 190
countries. It is headquartered in Redmond, Washington.
The company reported revenues of (US Dollars) US$85,320 million for the fiscal year ended June 2016
(FY2016), a decrease of 8.8% over FY2015. In FY2016, the company’s operating margin was 23.3%,
compared to an operating margin of 19.2% in FY2015. In FY2016, the company recorded a net margin of
19.7%, compared to a net margin of 13% in FY2015.
The company reported revenues of US$22,090 million for the third quarter ended March 2017, a
decrease of 8.3% over the previous quarter.
Key Facts
KEY FACTS
Head Office
Microsoft Corporation
1 Microsoft Way
REDMOND
Washington
REDMOND
Washington
USA
Phone
1 425 8828080
Fax
1 425 7067329
Web Address
www.microsoft.comen-us
Revenue / turnover (USD Mn)
85,320.0
Financial Year End
June
Employees
114,000
NASDAQ Ticker
MSFT
Microsoft Corporation
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Microsoft Corporation
Business Description
Business Description
BUSINESS DESCRIPTION
Microsoft Corporation (Microsoft or "the company") is engaged in the development and marketing of
software, services, and hardware devices. The company designs and sells hardware including personal
computers (PCs), tablets, gaming and entertainment consoles, phones, other intelligent devices, and
related accessories. In addition, Microsoft offers cloud-based solutions that provide customers with
software, services, platforms, and content; and consulting and product and solution support services. The
company operates globally and has offices in more than 190 countries.
The company operates its business through three business segments: More Personal Computing,
Productivity and Business Processes, and Intelligent Cloud.
More Personal Computing segment consists of products and services for end users, developers, and IT
professionals. The segment primarily comprises Windows, including Windows original equipment
manufacturer (OEM) licensing and other non-volume licensing of the Windows operating system, volume
licensing of the Windows operating system, patent licensing, Windows Embedded, MSN display
advertising, and Windows Phone licensing; Devices, including Microsoft Surface, phones, and PC
accessories; Gaming, including Xbox hardware; Xbox Live, comprising transactions, subscriptions, and
advertising; video games; and third-party video game royalties; and Search advertising. In FY2016, the
More Personal Computing segment reported revenues of $40,460 million, which accounted for 44% of the
company's total revenue.
Microsoft’s Productivity and Business Processes segment consists of products and services in its portfolio
of productivity, communication, and information services, spanning various devices and platforms. This
segment primarily comprises Office Commercial, including volume licensing and subscriptions to Office
365 commercial for products and services such as Office, Exchange, SharePoint, and Skype for
Business, and related Client Access Licenses (CALs); Office Consumer, including Office sold through
retail or through an Office 365 consumer subscription, and Office Consumer Services, including Skype,
Outlook.com, and OneDrive; and Dynamics business solutions, including Dynamics ERP products,
Dynamics CRM on-premises, and Dynamics CRM Online. In FY2016, the Productivity and Business
Processes segment reported revenues of $26,487 million, which accounted for 28.8% of the company's
total revenue.
The company’s Intelligent Cloud segment offers public, private, and hybrid server products and cloud
services for businesses. This segment primarily comprises Server products and cloud services, including
SQL Server, Windows Server, Visual Studio, System Center, and related CALs, as well as Azure; and
Enterprise Services, including premier support services and Microsoft consulting services. In FY2016, the
Intelligent Cloud segment reported revenues of $25,042 million, which accounted for 27.2% of the
company's total revenue.
Geographically, the company classifies its operations into two segments, namely the US and other
countries. In FY2016, the US segment accounted for 47.6% of the company's total revenues, followed by
other countries with 52.4%.
Microsoft Corporation
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Microsoft Corporation
History
History
HISTORY
In July, the company and Esri partnered to advance conservation through Enhanced Land Cover
Mapping Technology.
Dun & Bradstreet, a provider of commercial data, analytics and insights for business, teamed up with
Microsoft to give companies worldwide direct access to its data through Microsoft’s cloud services.
The company and BMW partnered to provide Skype for Business to 5 Series cars.
The company partnered with EY on a new analytics solution to help organizations enhance workforce
productivity and well-being.
The company and Vivli partnered with BlueMetal on a New Global Clinical Trial Data Platform to advance
scientific discoveries for Human Health.
The company launched an iPhone app which can narrate the world for blind people.
The company launched new email marketing and invoicing tools for small businesses.
Xplore Technologies partnered with Microsoft Azure Certified for Internet of Things.
Colt collaborates the company's Azure to On Demand Platform.
The company partnered with Excellon Software to launch exact GSP solution.
The company launched Surface Laptop to expand the Surface lineup.
The company introduced its Dictate AI-Enabled Add-on for Office.
The company and Absolute, the self-healing endpoint security company, collaborated for Microsoft Azure
Information Protection to enhance data protection.
The company partnered with 20 BankChain for the Microsoft Azure as exclusive Cloud partner.
Microsoft entered into an agreement to acquire Cloudyn, a software company.
The company signed an agreement to acquire Hexadite, a provider of technology to automate responses
to cyber attacks.
Microsoft entered into a strategic alliance with NetApp for accelerating digital transformation in hybrid
cloud.
Microsoft entered into a partnership with Adveo to utilize Microsoft's cloud computing platform, Microsoft
Azure to transform the office supplies business for workspace solutions.
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The company and Rhipe collaborated with the vendor as a globally managed licensing partner.
The company introduced a new Mixer Create live streaming app on iOS and Android.
Microsoft India entered into an agreement with Telecom Sector Skill Council, to develop skill through
Project Sangam.
Mid-Atlantic Broadband Communities and Microsoft introduced a network to provide broadband internet
access at home for students in Southern Virginia.
The company planned to introduce a new Surface Pro device.
VOSS Solutions, a Microsoft certified partner, introduced five new solutions for Microsoft UC.
The company planned to establish Azure data centres in South Africa.
Microsoft entered into partnership with United Nations for developing technology to better predict, analyze
and respond for critical human rights situations.
Microsoft India entered into partnership with UNO Minda for developing connected vehicle technologies.
The company introduced IoT Central today, a new IoT service for enterprises.
In March, the company's Power BI team honored with New Technology Integration Award at 2017 Esri
Partner Conference.
In February, the company introduced Xbox Game Pass, a subscription service with 100 Xbox One and
Xbox 360 games.
In February, the company planned to introduce Skype with Aadhaar authentication for allowing access to
bank accounts with webcam.
In February, the company introduced its Azure cloud platform at Seoul and Busan data centers in South
Korea.
In February, the company planned to expand into healthcare industry with artificial intelligence and cloud
services.
In February, Microsoft Italy introduced its new headquarters Microsoft House at Porta Volta, Milan, Italy.
In February, the company planned for moving its Michigan Microsoft Technology Center to downtown
Detroit, Michigan, the US.
In May, the company acquired Israeli cyber security startup, Hexadite.
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In February, Microsoft entered into an agreement with Liquid Telecom, to provide business-in-a-box
services across Africa.
In February, the company initiated a facility to fight against cyber crime in Latin America with new
Cybersecurity center in Mexico.
In April, the company announced to introduce a new surface Laptop ahead of Surface Pro 5, which
competes with Google's Chromebook.
In June, the company planned to introduce new data control privacy dashboard.
In June, the company planned to release Xbox One S, a slimmest gaming console at E3 Expo.
In May, the company introduced Microsoft Surface Pro 5 with Intel Kaby Lake processors.
In February, Microsoft entered into an agreement with Flipkart, to provide online shopping service in
India.
In March, Microsoft entered into partnership with Publicis Groupe for creating a new class of AI
capabilities to help clients for succeeding in market transformations.
In May, Vonage entered into an agreement with Microsoft, to introduce a connector to Microsoft workflow
automation suite.
In May, Microsoft and Samsung planned to introduce call capable smart speaker.
In May, Batelco joined Microsoft for introducing Microsoft Surface devices.
In May, Downer entered into partnership with Microsoft for developing cloud based services.
In May, Mobily entered into an agreement with Microsoft Arabia to provide cloud services and productivity
tools for Small Medium Enterprises in Saudi Arabia.
In May, the company planned to introduce Dubai font.
In February, the company plans to launch HoloLens v3, the consumer-ready version of HoloLensmixed
reality headset from Microsoft.
In May, the company and the Office of the UN High Commissioner for Human Rights entered into a fiveyear partnership for works of the UN Human Rights Office for a grant of US$5 million from Microsoft.
the company entered into a partnership with Yokogawa Electric Corporation, FogHorn Systems, Inc.,
Bayshore Networks, Inc., and Telit IoT Platforms, LLC, to integrate industrial IoT architecture.
In February, the company entered into a partnership with Yokogawa Electric Corporation, FogHorn
Systems, Inc., Bayshore Networks, Inc., and Telit IoT Platforms, LLC, to integrate industrial IoT
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architecture.
Microsoft and Flipkart entered into a strategic partnership, whereby Flipkart will incorporate Microsoft
Azure as its public cloud platform. Also, the company entered into a patent licensing agreement with
Toyota that includes extended coverage for connected car technologies. Subsequently, Microsoft
Technology Licensing and Casio Computer entered into a patent licensing agreement that includes
coverage for smartwatch technologies.
The company acquired Maluuba, a Canadian deep learning startup.
In June, the company's OneDrive partnered with Agolo to incorporate enterprise cloud documents in its
real-time summarization platform.
In September, Univa, an innovator of workload management products, joined Microsoft Enterprise Partner
Cloud Alliance to reinforces Univa's commitment to providing best-in-class solutions built on the Microsoft
cloud stack.
In September, the company and Docker signed commercial partnership to provide enterprises to
modernize their application environments and create hybrid Windows applications.
In October, the company introduced HoloLens in six new countries for expansion of its mixed reality
headset business.
In October, the company planned to introduce new Messenger app.
In November, the company introduced a new Insider Preview build of Office Mobile for Windows 10.
In October, Microsoft announced to launch its own version of Slack.
In December, Microsoft India, L V Prasad Eye Institute, and global experts announced to launch Microsoft
Intelligent Network for Eyecare (MINE).
In October, the company invested US$3 billion in cloud and European data centres.
In September, the company introduced new Office 365 App Launcher UI.
In September, the company planned to introduce service fabric on Linux.
In August, the company planned to introduce its Surface Phone at IFA 2016.
In August, the company planned to open two more retail stores in the US.
In July, the company planned to introduce box One S 500GB, 1TB bundles.
In July, the company planned to introduce new Microsoft Authenticator applications.
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In July, the company planned to introduce Xbox One S 2 TB.
In July, the company planned to introduce new Surface hardware.
In July, the company planned to release Band 3.
In June, Microsoft entered into partnership with DepEd for launching EGG.
In July, the company planned to release Surface All-in-One PC.
In June, the company planned to introduce Azure Information Protection Service.
In June, the company planned to open its newest specialty store in Brea, California.
In June, the company planned to introduce payment system for Windows 10 smartphones.
In June, the company released new Office 365 admin app for Windows phone and Android.
In June, the company planned to introduce Cortana on iOS and Android.
In June, the company opened Cyber Security Engagement Centre in India.
In May, the company planned to introduce VR Capable Xbox in next year.
In May, Microsoft planned to open Innovation Center in Bosnia.
In May, the company planned to introduce Minecraft in China.
In May, iBall partnered with Microsoft and Intel to introduce iBall CompBook laptop.
In May, the company planned to introduce smartphone with pre-touch technology.
In May, the company planned to release Surface Book 2 with a 4K display.
In March, the company planned to release Windows 10 Mobile 10586.318.
In May, the company planned to introduce Xbox One Slim at 2016 E3 conference.
In April, the company planned for expansion of its cloud computing business in China.
In April, the company planned to release three models of its Surface phone in next year.
In March, the company planned to introduce a Universal Skype app in Windows 10.
In March, the company planned to introduce new Office 365 for Nonprofits.
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In March, Microsoft Nigeria opened its new office in Lagos, Nigeria.
In March, the company planned to release Lumia 650 in the US.
In March, the company planned to introduce Windows 10 Mobile.
In March, the company opened a new office and experience center at Cyberport.
In March, the company planned to introduce universal Xbox apps.
In May, Airtel entered into partnership with Microsoft, to introduce a new cloud platform Connexion.
In May, Microsoft entered into partnership with SAP for providing product integrated cloud solutions.
in December, Microsoft entered into an agreement with Qualcomm, to introduce full 32 bit Win32
compatibility to ARM devices run on Windows 10.
In March, the company introduced new Office 365 admin center.
In March, the company released Windows 10 Mobile 10586.164.
In February, the company planned to establish a Cybercrime Center in Seoul, South Korea.
In February, Microsoft and HTC planned to introduce new Windows 10 mobile handsets.
In February, the company set to introduce TV OS.
In February, HCL Technologies entered into an agreement with Microsoft, to introduce an incubation
centre for IoT in Redmond, Washington, the US.
In January, the company planned to introduce new Minecraft Edition for schools.
In January, the company planned to introduce its own SIM card for windows.
In February, the company released Lumia 650 smartphone.
In January, the company released Lumia 850 smartphone.
In January, Volvo entered into partnership with Microsoft, to introduce wearable voice control technology.
Microsoft Technology Licensing and Olio Devices signed a patent licensing agreement covering wearable
devices.
Microsoft and Acer expanded their global partnership to bring Microsoft mobile productivity services to
more consumers.
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Microsoft entered into a definitive agreement to acquire SwiftKey, a software keyboard that powers
Android and iOS devices. This acquisition aligns with the company's commitment to offer its products and
services on all platforms. Subsequently, Microsoft signed a definitive agreement to acquire Xamarin, a
platform provider for mobile app development. This acquisition is expected to enable developers to build
apps on any device and enhance mobile app development.
Nissan Motor selected Microsoft Azure to power Nissan telematics system. Subsequently, Microsoft
Technology Licensing entered into a collaborative patent licensing agreement with GoPro for certain file
storage and other system technologies.
Microsoft and Acer expanded their global partnership to offer Microsoft mobile productivity services to
more consumers.
The company and Wistron entered into a renewed Android patent licensing agreement covering Wistron’s
tablets, mobile phones, e-readers, and other consumer devices running Android and Chrome platforms
under Microsoft’s patent portfolio. This agreement extends a prior Android intellectual property (IP)
license between the companies. Also, Microsoft Technology Licensing and Rakuten signed a worldwide
patent cross-licensing agreement covering each company’s respective consumer electronics products,
including Linux and Android-based devices. This agreement enables the company and Rakuten to offer
new products to its consumers.
Microsoft entered into a strategic partnership with R3 Consortium to accelerate the use of distributed
ledger technologies, also known as blockchain, among R3 member banks and global financial markets.
Though this partnership, Microsoft will provide cloud-based tools, services and infrastructure for R3 lab
locations around the world, as well as dedicated technical architects, project managers, lab assistants
and support services. Microsoft Technology Licensing and Visuality Systems expanded their Server
Message Block (SMB) collaboration from the embedded world to the enterprise market. This partnership
offers enhanced business solutions to more products worldwide. Subsequently, Microsoft and RollsRoyce collaborated to bring new capabilities to Rolls-Royce customers. Rolls-Royce will integrate
Microsoft Azure IoT Suite and Cortana Intelligence Suite into its service solutions to expand its digital
capabilities to support the current and next generation of Rolls-Royce intelligent engines. Further,
Microsoft and Jabil collaborated to create quality assurance platform for predictive analytics. The
company and Funai Electric extended their partnership with the renewal of a patent cross-licensing
agreement covering various consumer audio-video products.
ELECOM and Microsoft entered into a patent collaboration to provide a range of business solutions for
customers including network attached storage and tablets. Also, the company entered into a partnership
with SAP to deliver broad support for the SAP HANA platform deployed on Microsoft Azure, to simplify
work through new integrations between Microsoft Office 365 and cloud solutions from SAP, and to
provide enhanced management and security for custom SAP Fiori apps. Subsequently, Microsoft reached
an agreement to sell the company’s entry-level feature phone assets to FIH Mobile, a subsidiary of Hon
Hai/Foxconn Technology, and HMD Global. As part of the deal, FIH Mobile will also acquire Microsoft
Mobile Vietnam, the company’s Hanoi, Vietnam’s manufacturing facility and substantially all of its feature
phone assets, including brands, software and services, care network and other assets, customer
contracts, and critical supply agreements. The company and Xiaomi entered into an agreement to expand
their global partnership to provide innovative user experiences on mobile devices. As part of the
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agreement, Xiaomi will ship Microsoft Office and Skype on Xiaomi Android smartphones and tablets.
Furthermore, Microsoft and LinkedIn entered into a definitive agreement under which Microsoft agreed to
acquire LinkedIn for approximately $26.2 billion, inclusive of LinkedIn’s net cash. Also, the company and
International Society for Technology in Education (ISTE) collaborated to provide school planning and
professional learning resources. Subsequently, Microsoft Technology Licensing collaborated with
Jearwon Microelectronics to expand cloud-based business solutions for enterprise customers around the
world. This collaboration includes the delivery of patent license rights. Luna Mobile and the company
entered into patent partnership to expand smartphone and tablet technology for customers around the
world.
GE partnered with Microsoft to bring its Predix platform for the Industrial Internet available on the
Microsoft Azure cloud for industrial businesses. Also, Microsoft Technology Licensing and Ryussi
Technologies announced a new partnership in business and technology solutions covering Microsoft’s
File Access Server Protocols for the enterprise data storage market. Subsequently, the Renault-Nissan
Alliance and Microsoft signed a global, multiyear agreement to partner on next-generation technologies to
advance connected driving experiences worldwide. Further, Microsoft and Adobe entered into a strategic
partnership to help enterprise companies embrace digital transformation. Also, Microsoft and Workday
announced a global strategic partnership that will expand the business solutions joint customers can use
to continually optimize the way work gets done. Subsequently, Microsoft partnered with Bank of America
Merrill Lynch to transform trade finance transacting with Azure Blockchain as a Service.
In December, the company set to introduce Xbox slim to take on Apple in battle for living room.
In December, the company planned to introduce Surface Pro 4 tablets in India.
In November, the company planned to introduce Lumia 1050 set.
In November, the company relocated its Tennessee branch to Nashville.
In November, the company introduced Lumia 950, 950 XL in India.
In November, Microsoft and Google provided free Skype and Hangout calls in France for few days.
In November, Microsoft entered into partnership with ConsenSys, to introduce blockchain platform.
In November, the company planned to provide Azure and Office 365 Cloud Services from the UK.
In November, the company planned to open its two new data centers in Germany.
In November, the company planned to introduce its Windows 10 mobile device, Lumia 950.
In November, the company planned to open its data centres for cloud computing business in the UK.
In November, Druva entered into partnership with Microsoft for expansion of Cloud Footprint and
Flexibility.
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In November, the company planned to introduce Surface Phone As Ultimate Productivity Phone.
In November, the company planned to introduce Windows 10 Threshold 2.
In November, the company plan to introduce its first Lumia phones powered by Snapdragon 820.
In October, Dell partnered with Microsoft to provide hybrid cloud solutions.
In April, the company introduced collaborative, new Office software suite.
In August, the company planned to introduce Xbox One DVR.
In July, the company planned to introduce Lumia 640 XL LTE In India.
In September, the company introduced Windows phones Lumia 950, 950 XL with iris scanner.
In July, the company introduced Arrow Launcher Beta for its fans.
In July, the company planned to introduce Windows 10, a new version of its operating system.
In July, the company planned to introduce Surface Pro 4 with Windows 10.
In July, the company planned to provide free Azure cloud services to start ups in India.
In July, the company released Cortana Analytics Suite, a new package of data storage, information
managing, machine learning, and business intelligence software in a monthly subscription.
In July, the company planned to introduce its surface devices in India.
In July, the company released a new office 365 enterprise suite.
In July, the company introduced next generation of office software suite for Apple MacBook and iMac
users.
In June, Microsoft, Google, Mozilla and others partnered to introduce WebAssembly, a new binary format
for web.
In June, the company introduced power banks with capabilities of 5,200mAh, 9,000mAh and 12,000mAh.
In May, the company released Microsoft Lumia 540 Dual SIM mobile.
In June, Microsoft entered into an agreement with Snapdeal, to introduce branded online store.
In April, the company planned to introduce more 4G phones in India.
In April, the company planned to open its retail store at Easton, Pennsylvania, the US.
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In April, the company planned to open its store in University Town Center Mall.
The company launched new solutions spanning containers, security, infrastructure and IoT on Microsoft
Azure cloud platform.
Microsoft launched a new Surface, the Surface 3, a 4G LTE ready version, optimized to run full Windows
and Office.
The company launched new Surface, Lumia and Microsoft Band devices and enhanced its Windows 10
product lineup. Also, ABB and Microsoft launched new electric vehicle (EV) fast-charging services
platform, combining ABB's EV charging stations with Microsoft's Azure cloud-based services. Dell and
Microsoft launched a new cloud solution, including Microsoft Azure-consistent, an integrated system for
hybrid cloud and extended program offerings. TASER International and Microsoft entered into a
partnership to combine capabilities of the Microsoft Azure cloud platform and Windows 10 devices with
TASER's Axon Platform and Evidence.com solution.
Microsoft launched Windows 10, a new generation of Windows.
Samsung and Microsoft extended their partnership to pre-install Microsoft services and apps on
Samsung's portfolio of Android devices and will deliver secured mobile productivity for businesses
through a new Microsoft Office 365 and Samsung KNOX Business Pack.
Kyocera and Microsoft expanded their patent licensing agreement that enables the companies to use a
range of each other's technologies in their respective products through a patent cross license. Also, the
company announced to restructure its phone hardware business and transfer its imagery acquisition
operations to Uber and strategically shift its display advertising business that would enable it to focus on
investing in search as its core advertising technology and service.
The company entered into a partnership with China Electronics Technology Group (CETC) to provide
operating system technology and services for Chinese users in specialized fields in government
institutions and critical infrastructure state-owned enterprises.
Microsoft and General Electric signed an agreement to deliver Microsoft's cloud productivity suite Office
365 for employee collaboration and productivity.
The company partnered with Ford Motor to form Ford Service Delivery Network and expand its connected
services. Microsoft also partnered with InsideSales.com, a leading cloud-based sales acceleration
technology company, to offer complete sales acceleration platform, which includes PowerDialer,
PowerStandings, NeuralView and Vision, to customers using the Microsoft Dynamics CRM platform.
Microsoft and FieldOne Systems signed an agreement to include FieldOne Sky field service management
solution into the Microsoft Dynamics global independent software vendor program. Subsequently, the
company agreed to acquire IP from Fusion Software which will add voice of the customer capabilities to
Microsoft Dynamics CRM.
Melco Group and Microsoft entered into a patent agreement providing Melco Holdings coverage for its
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Linux and Android-based devices under Microsoft's patent portfolio.
Adobe and Microsoft entered into a collaboration to integrate Adobe's Marketing Cloud Solutions with
Microsoft Dynamics CRM solution and enhance customer engagement.
The company acquired Adxstudio, a web portal and application lifecycle management solutions provider.
This acquisition is expected to enhance the company's Microsoft Dynamics CRM offerings.
The company acquired Equivio, a provider of machine learning technologies for eDiscovery and
information governance. This acquisition is expected to enhance the company's Office 365 offerings,
which include eDiscovery and information governance capabilities.
TGI Fridays partnered with Microsoft to process orders and payments using Fridays Service Style
technology powered by Windows 8.1. Subsequently, Microsoft Open Technologies, a subsidiary of
Microsoft partnered with Moodle partner Remote-Learner.net and integrated Moodle and Microsoft Office
365 to transform education technology.
Deutsche Telekom and Microsoft extended their partnership to expand and market Microsoft Lumia
smartphones and online services such as Office 365 and OneDrive across sales and marketing channels
in all 12 European countries where Deutsche Telekom operates.
Polycom and Microsoft extended their partnership through which Polycom will deliver a new series of
video collaboration solutions purpose-built for Skype for Business called Polycom RoundTable.
Subsequently, Fuji Xerox and Microsoft Technology Licensing signed a cross-licensing agreement that
covers a broad range of products and services offered by Microsoft and Fuji Xerox, including digital
imaging, document management and mobile consumer products.
Fujitsu and Microsoft collaborated to transform manufacturing processes through Fujitsu devices powered
by Windows 8.1 Pro, the IoT services of FUJITSU Cloud A5 for Microsoft Azure, and the Fujitsu IoT/M2M
platform. Subsequently, Miele & Cie, a manufacturer of high-end domestic appliances and commercial
equipment, and Microsoft collaborated to create next generation of smart appliances and home cooking.
Microsoft announced a range of new products and services, including the next generation of Windows
management, Microsoft Office, hybrid cloud infrastructure and SQL Server. Also, Microsoft announced
that Windows 10 will be available on July 29 in 190 countries. Subsequently, Microsoft launched the new
Nokia 105 and Nokia 105 Dual SIM. The mobiles are aimed at first-time mobile phone buyers, as well as
people looking for a reliable backup device for their smartphone.
Subsequently, Microsoft launched Microsoft Surface Hub, the company's new large-screen collaboration
device, expected to be available for businesses to order in 24 markets.
Microsoft and Dell expanded their partnership to deliver premium Windows 10 devices and services and
support to enterprise customers. Also, Microsoft and Salesforce expanded their strategic partnership to
connect the Salesforce Customer Success Platform to Microsoft Office productivity apps and services.
The company and ASUSTeK Computer expanded their patent licensing agreement that includes cross-
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license covering.
The company and Red Hat entered into a partnership under which Red Hat Enterprise Linux would be
offered as the preferred choice for enterprise Linux workloads on Microsoft Azure. Also, Microsoft
Technology Licensing and Star Micronics signed a worldwide patent licensing agreement that provides
coverage under Microsoft's patent portfolio for Star Micronics' Android-based commercial printers and
computing devices. Subsequently, the company announced plans to offer cloud services from the UK.
Further, Hewlett Packard Enterprise (HPE) and Microsoft strengthened their collaboration on Windows 10
offerings, and launched cloud productivity and mobility solution offerings.
HPE and the company announced plans to deliver integrated hybrid IT infrastructure. The extended
partnership appoints Microsoft Azure as a preferred public cloud partner for HPE customers while HPE
will serve as a preferred partner in providing infrastructure and services for Microsoft's hybrid cloud
offerings. Subsequently, Microsoft acquired Metanautix, an analytics start-up which is expected to
enhance the company's presence in the analytics market.
In September, the company planned to establish a new data center in South Korea.
The company announced restructuring plan to simplify its organization and align the recently acquired
Nokia Devices and Services business with the company's overall strategy. Microsoft and Akamai
Technologies partnered with venture capital (VC) firm Jerusalem Venture Partners (JVP) to develop
accelerator in the field of cybersecurity.
Microsoft announced its plans to open its first US-based Microsoft Innovation Center (MIC) in Miami,
Florida.
The company and Voxx Electronics entered into a worldwide patent licensing agreement that provides
Voxx Electronics with broad coverage under Microsoft's patent portfolio for devices running the Android
OS, including rear-seat entertainment devices, tablets and other consumer devices.
Microsoft announced new services, products and partnerships that remove the barriers to cloud adoption
for IT professionals, developers and technology users. These include private connections to cloud; cloud
storage solutions; enterprise-grade performance and networking and Azure API management. The
company also enhanced its enterprise mobility suite with the introduction of office mobile app
management with Windows Intune and Microsoft Azure RemoteApp. Subsequently, Microsoft launched
Surface Pro 3 tablet that offers the performance and mobility of a laptop. Microsoft enhanced its Microsoft
Dynamics CRM spring wave that delivers a comprehensive solution that provides businesses with
marketing, sales and customer care capabilities integrated with productivity applications, such as
Microsoft Office 365, Yammer, Lync, Skype, SharePoint and Power BI for Office 365. Microsoft and
American Family Insurance launched business accelerator for startups focused on home automation.
Subsequently, Microsoft devices group launched Nokia X2 and expanded its Nokia X family of
smartphones.
The company launched Microsoft Windows 97, Microsoft Office 97 and Internet Explorer 4.0.
Mexico's Tax Administration System (SAT) selected Microsoft Azure cloud computing services, to
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enhance the services offered to tax payers of Mexico. Microsoft launched an online intellectual property
(IP) portal called the Microsoft 4Afrika IP Hub, to create an IP protection culture in Africa. Microsoft
Devices Group launched Nokia 130, a mobile phone with music and video player. Saudi Airlines
implemented the company's business intelligence solution, including Microsoft SQL Server 2012, Power
BI for Office 365, Windows Server 2012 and Microsoft SharePoint Server 2013.
Microsoft released a cloud portal, new services and tools to simplify cloud development.
Microsoft and SAP expanded their global partnership to deliver new solutions in the areas including
enterprise cloud computing with SAP applications certification for Microsoft Azure; interoperability
between data from SAP applications and Microsoft Office; and mobile productivity with expanded
development and support for Windows and Windows Phone 8.1.
RCS MediaGroup modernized and unified its communications infrastructure and enabled flexible, cloudbased collaboration through a comprehensive Microsoft technology solution that includes Microsoft Office
365, Windows Azure, Microsoft Lync 2013, Windows Server 2012 and Microsoft SharePoint 2013. Also,
Microsoft Open Technologies, a subsidiary of Microsoft, expanded its presence in China with the
establishment of a new subsidiary, Microsoft Open Technologies (Shanghai).
Microsoft expanded its partnership with Pearson VUE, and announced Microsoft Certified Professional
(MCP) and Microsoft Technology Associate (MTA) exams online in select locations. Also, Microsoft and
salesforce.com as part of their strategic partnership launched joint solutions, including Salesforce1 for
Windows, Salesforce for Office and Power BI for Office 365 and Excel integrations with Salesforce.
Accenture and Microsoft expanded their long-standing strategic alliance and introduced Accenture Hybrid
Cloud Solution for Microsoft Azure.
The Sheriff's Department of the San Bernardino County, California, selected Microsoft Office 365 and
Windows 8.1 tablets, to meet the privacy and security CJIS requirements of the FBI and enable mobile
workers and streamlines communications. Also, the company announced a new roster of agency partners
to handle its advertising and media planning and buying. The company chose IPG as its agency of record
for advertising and global deployment while Dentsu Aegis will handle media planning, media buying and
search advertising.
Microsoft signed a definitive agreement to acquire Parature, a provider of cloud-based customer
engagement solutions. The acquisition is expected to add world-class customer self-service capabilities
to further accelerate the Microsoft Dynamics vision of helping organizations to deliver enhanced customer
experiences. Also, GoDaddy and Microsoft announced a long-term strategic partnership to offer Office
365 as GoDaddy's exclusive core business-class email and productivity service to its small-business
customers. Subsequently, Microsoft was selected to be the cloud encoding and hosting platform provider
for NBC Olympics, a division of the NBC Sports Group, during its production of the 2014 Olympic Winter
Games in Sochi, Russia.
Microsoft and TracFone Wireless entered into a collaboration to provide mobile health management
solution offered through providers and insurers. Subsequently, the company signed an agreement to
acquire Mojang, a Stockholm-based game developer, and its "Minecraft" franchise for a consideration of
$2.5 billion. This acquisition is expected to enhance the company's position in gaming industry.
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Microsoft Corporation
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Microsoft and Canon signed a broad patent cross-licensing agreement and gained access to each other's
patent portfolios.
Microsoft and Starcom MediaVest Group signed an agreement to work together on video ad experiences
across Microsoft's portfolio of digital advertising assets. The company and Dell signed a patent licensing
agreement that allows both the companies to share technology and build on each other's innovations.
Subsequently, the company signed a patent licensing agreement with Motorola Solutions. The license
provides worldwide coverage under Microsoft's patent portfolio for Motorola Solutions' devices running the
Android platform and Chrome OS operating system.
Microsoft completed its acquisition of the Nokia Devices and Services business following the approvals by
Nokia shareholders and by governmental regulatory agencies around the world.
Microsoft launched Xbox One, an all-in-one gaming and entertainment system. Subsequently, Microsoft
introduced the Cloud OS Network, a consortium of more than 25 cloud service providers delivering
services built on the Microsoft Cloud Platform: Windows Server with Hyper-V, System Center and the
Windows Azure Pack.
The company launched Xbox One, the all-in-one gaming and entertainment system.
Microsoft launched Windows Embedded 8 Handheld for enterprise handheld devices.
Freight railroad networks BNSF Railway, selected Microsoft Office 365 to move 40,000 mobile workers to
the cloud. Microsoft opened the Microsoft Cybercrime Center, a center of excellence for advancing the
global fight against cybercrime. Jean Coutu Group (PJC) selected Microsoft Dynamics for Retail to
manage all its retail operations, from its headquarters down to the point of sale (POS) devices in stores.
The company established four Microsoft specialty stores in Roseville, California; Arlington, Texas; Novi,
Michigan; and Seattle to expand its retail footprint.
Microsoft opened Microsoft Cybercrime Center, a center of excellence for fighting cybercrime. The center
combines Microsoft's legal and technical expertise as well as tools and technology with cross-industry
expertise.
Grocery and general merchandise retailer Tesco selected Microsoft Office 365 for its companywide
collaboration and social platform. Subsequently, department store chain, JC Penney upgraded to the
cloud using Office 365 to create a new customer service experience and communications environment for
the team members. The Texas Department of Information Resources moved to the cloud with Microsoft
Office 365 as part of a statewide IT modernization strategy. The company launched Outlook.com, a new
email service. Microsoft and Nikon signed a patent licensing agreement that provides broad coverage
under Microsoft's patent portfolio for certain Nikon cameras running the Android platform. The company
along with Toyota Racing Development, a subsidiary of Toyota Motor Sales, designed a touch-enabled
app on Windows 8 for Toyota's NASCAR race teams. Microsoft and NBC Sports partnered to use
Windows Azure Media Services across NBC Sports' digital platforms, including NBCSports.com,
NBCOlympics.com and GolfChannel.com.
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Microsoft Corporation
History
Microsoft Digital Crimes Unit in collaboration with Europol's European Cybercrime Centre (EC3), the
Federal Bureau of Investigation (FBI) and leaders in the technology industry, including A10 Networks,
disrupted ZeroAccess, a rampant botnet. AOL, Apple, Facebook, Google, LinkedIn, Microsoft, Twitter and
Yahoo joined together to propose principles for reforming government surveillance laws and practices.
Microsoft and Docker entered into a strategic partnership to provide Docker with support for new
container technologies and create container applications across platforms. Subsequently, IBM and
Microsoft entered into a partnership to provide their respective enterprise software on Microsoft Azure
and IBM Cloud. Also, Microsoft and Dropbox entered into a partnership to integrate their services for
collaboration across Dropbox and Microsoft Office on phones, tablets and the web.
ABB deployed Microsoft Office 365 and Yammer as part of strategic initiative to improve collaboration
worldwide. Microsoft China and the Hainan government signed a memorandum of understanding (MoU)
which covers incubating the application of informatization, nurturing the software industry, developing the
next generation of IT, and protecting intellectual property rights to enable Hainan to transform into an
international tourism destination. Subsequently, Microsoft and Hon Hai, the parent company of Foxconn,
signed a worldwide patent licensing agreement that includes Microsoft's patent portfolio for devices
running the Android and Chrome OS, including smartphones, tablets and televisions. Also, the company
partnered with Tanzania Commission for Science and Technology and UhuruOne, an internet service
provider, to provide wireless broadband access to university students and faculty in Dar es Salaam,
Tanzania and enable UhuruOne to offer Windows 8 device and service packages to universities in Dar es
Salaam. Microsoft and the National Football League (NFL) entered into a multi-year, landmark
partnership to deliver interactive NFL TV experiences for the next-generation Xbox One and leverage
Microsoft devices and services. Microsoft and Oracle announced a partnership that will enable customers
to run Oracle software on Windows Server Hyper-V and in Windows Azure.
Microsoft agreed to purchase substantially all of Nokia's Devices & Services business, license Nokia's
patents, and license to use Nokia's mapping services. Microsoft launched a range of enterprise cloud
solutions, including New Windows Server, System Center, Visual Studio, Windows Azure, Windows
Intune, SQL Server, and Dynamics solutions.
AT&T partnered with Microsoft to deliver a security-enhanced cloud solution that will allow enterprise
customers to connect to Microsoft's cloud platform using a private network.
Microsoft also signed exFAT licensing agreement with German automotive company, BMW. Microsoft
provided a $2 billion loan to the group that proposed to take Dell private.
Microsoft acquired InRelease Business Unit from InCycle Software, a provider of application lifecycle
management (ALM) services and release management solutions on the .NET platform. Microsoft
announced the initial phase of its business-channel expansion plans for the Surface family of PCs, along
with AppsForSurface, a new Surface application-development program for independent software vendors
(ISVs). An airline group, International Airlines Group (IAG), the parent company of British Airways and
Iberia selected Microsoft Office 365 as the business communication solution for approximately 58,000
employees.
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Microsoft Corporation
History
Wipro Technologies, the global IT, consulting and outsourcing business of Wipro, migrated to Microsoft
Lync Server 2010. The company acquired Perceptive Pixel, a company engaged in research,
development and production of large-scale, multi-touch display solutions.
The company and Pegatron signed a patent agreement that provides coverage under Microsoft's patent
portfolio for a broad array of Pegatron products, including eReaders, smartphones and tablets running the
Android or Chrome platforms. Also, Barnes & Noble and Microsoft formed a strategic partnership to
advance digital reading technologies. Subsequently, Nike teamed up with Microsoft to launch Nike+
Kinect Training fitness program on Kinect for XboX 360. Subsequently, General Electric, through its
healthcare IT business, and Microsoft formed Caradigm, a 50-50 joint venture aimed at enabling health
systems and professionals to use real-time, organization-wide intelligence. Federal Aviation
Administration selected Microsoft Office 365 for email and collaboration in the cloud. The company
entered into a patent cross-license agreement with Amdocs Software Systems, a provider of software and
services. The patent agreement provides mutual access to each company's patent portfolio, including a
license under Microsoft's patent portfolio covering Amdocs' use of Linux-based servers in its data centers.
Further, Microsoft entered into an intellectual property licensing agreement with Sharp, which covers the
use of exFAT in smartphones distributed by Sharp based on the Android platform.
Cleveland-based software provider PreEmptive Solutions and Microsoft partnered to provide exception
analytics in Visual Studio 2012 and Team Foundation Server 2012. Spanish broadband and
telecommunications provider Telefonica selected Microsoft Mediaroom Product Suite for global
convergent video platform that will power its pay TV and over-the-top services across its operating
businesses, with first deployments in Brazil, Chile and Spain.
The company acquired Yammer, a provider of enterprise social networks, for $1.2 billion in cash. Lowe, a
chain of retail home improvement and appliance stores selected Office 365 across more than 1,745
stores and corporate offices in the US, Canada and Mexico.
Microsoft and General Electric announced plans to launch a joint venture.
Microsoft previewed the next major release of Windows Phone, code-named Mango. Microsoft launched
Office 365, its newest cloud offering in 40 countries.
The company rolled out next generation television (TV) on Xbox Live, the online entertainment service for
Xbox 360, by teaming up with 40 TV and entertainment providers in 20 countries across the world.
Microsoft announced support for system on chip (SoC) architectures from semiconductor companies Intel,
AMD, and ARM for next version of Windows. Also, Microsoft and Samsung unveiled the next generation
of Surface, which uses new technology that allows large displays. Subsequently, the company launched
Microsoft Dynamics customer relationship management (CRM) online cloud service globally and
showcased Microsoft Dynamics AX for retail R2. Further, Nokia and Microsoft announced plans for a
broad strategic partnership to build a new global mobile ecosystem. Turkish mobile operator Turkcell and
Microsoft's Tag technology announced a new mobile marketing service called MobilKod, built by Turkcell
leveraging Microsoft. Subsequently, Dell collaborated with Microsoft and Stellaris Health Network to
deliver software-as-a-service (SaaS) analytics solutions for community hospitals.
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Microsoft Corporation
History
Microsoft and Toyota Motor formed a strategic partnership to build a global platform for Toyota Motor's
next-generation telematics services using the Windows Azure platform. Also, Microsoft signed a patent
licensing agreement with Volkswagen's software supplier e.solutions, providing the Germany-based
company access to extended file allocation table (exFAT) technology. Subsequently, the company
entered into an agreement with Capgemini where in the latter would market and deliver services around
Windows Azure in 20 countries.
Microsoft and China Standard Software signed an agreement to jointly develop, market and sell solutions
for the cloud-computing market in China. Subsequently, Microsoft entered into an agreement with Verizon
to launch new FiOS TV-powered entertainment experience on Xbox 360. Also, the company signed a
patent agreement with Quanta where in the latter will pay royalties for accessing a range of patents. Upon
formation, the new company will develop and market an open, interoperable technology platform and
clinical applications focused on enabling better population health management to improve outcomes and
the overall economics of health and wellness. Further, Microsoft and Japanese automaker Nissan
established strategic relationship for next-generation dealer management system using Microsoft
Dynamics CRM.
Microsoft collaborated with Philips to streamline radiology workflow and processes and formed strategic
alliance with electronic health records (EHR) solutions provider athenahealth to launch clinical solution to
better connect hospitals, physicians and patients.
The company acquired Skype, an internet communications company, for $8.5 billion.
Microsoft acquired California-based video discovery technology company VideoSurf. VideoSurf's content
analytics technology is expected to enhance the search and discovery of entertainment content across
the company's platform.
Microsoft and Yahoo! received clearance for their search agreement from both the US Department of
Justice and the European Commission, and announced plan to implement the deal. The implementation
involves transitioning Yahoo!'s algorithmic and paid search platforms to Microsoft, with Yahoo! becoming
the relationship sales force for both companies' premium search advertisers globally.
Microsoft and HTC signed a patent agreement that provides coverage under Microsoft's patent portfolio
for HTC's mobile phones running the Android mobile platform. The company signed a patent crosslicensing agreement with DENSO, a supplier of advanced automotive technology. Also, HP and Microsoft
collaborated to work together on a Microsoft Windows Azure platform appliance that will accelerate
adoption of cloud-based applications. Subsequently, Daimler migrated to Microsoft's unified
communications, messaging and collaboration solutions. NEC, Intel, and Microsoft formed a strategic
relationship to provide an integrated digital signage offering for the global market, including Japan.
The company signed a patent cross-license agreement with Amazon.com, which provides both the
companies access to each other's patent portfolio and covers a broad range of products and technology,
including coverage for Amazon's e-reading device, Kindle, and Amazon's use of Linux-based servers.
Microsoft opened the Microsoft Software and Services Excellence Center (SSEC) for developing nextgeneration connected devices and cloud datacenters through integrating its software services and cloud
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Microsoft Corporation
History
datacenter technologies with Taiwan's hardware expertise. The company unveiled the next generation of
SQL Server, Microsoft SQL Server code-named Denali, new offerings for business intelligence and
mission-critical workloads.
Capgemini and Microsoft formed an alliance, under which, Capgemini will market and offer the Microsoft
Business Productivity Online Suite, Microsoft's cloud-based communication and collaboration service,
through its Global Service Line of Infostructure Transformation Services. The company sold its Microsoft
Expression Media product to Phase One, a player in digital photography. The company and Novell
collaborated to offer high-performance computing interoperability solution including server workload
management across SUSE Linux Enterprise Server and Windows HPC Server.
Microsoft partnered with Intuit to offer web applications to small businesses. Also, Microsoft partnered
with Interpublic Group (IPG), an advertising holding company, according to which IPG will designate
Microsoft's Atlas as a preferred ad-server solution provider. Subsequently, Microsoft partnered with Ford
Motor to implement the Microsoft Hohm energy management application for Ford's electric vehicles.
Further, Samsung Electronics and Microsoft signed an agreement to integrate Microsoft PlayReady
technology in a broad range of Samsung's consumer products.
Microsoft acquired Sentillion, a company specializing in software for the healthcare industry.
Google acquired the patent license for Microsoft Exchange ActiveSync to implement it on Google
Servers.
Microsoft launched its first Microsoft Embedded Systems Development Centre (MESDC) in Aachen,
Germany; and Windows Embedded NavReady 2009, its first embedded operating system designed
specifically for OEMs building handheld portable navigation devices (PNDs).
Accenture and Microsoft formed an initiative, working with Avanade, a global IT consultancy created by
Accenture and Microsoft, to enable retailers address the challenge of linking consumers to technology
platforms such as social networking and online communities.
The company collaborated with comScore to develop a digital media planning solution, the Reach and
Frequency Planner, which will allow brand advertisers to predict reach, frequency and audience
composition at the ad placement level. Also, Microsoft and Nokia entered into an alliance to design,
develop and market mobile productivity solutions. Subsequently, the company together with Fundtech, a
global transaction banking solutions provider, launched the SEPA Integration Suite, a new suite of SOA
(service-oriented architecture) services. Temenos Group, a provider of integrated core banking systems,
and Microsoft formed an alliance for providing core banking solutions with TEMENOS T24 and Microsoft
SQL Server.
Microsoft and Infosys entered into a new go-to-market alliance to jointly launch solutions, services and a
center of excellence to help manufacturers build next-generation supply chains. Also, Microsoft partnered
with Cisco to support Unified Computing System to launch into the server datacenter market as an OEM.
Through this agreement, Cisco will pre-package, resell and support Windows Server 2003, Windows
Server 2008 with Hyper-V technology and Microsoft SQL Server 2008.
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Microsoft Corporation
History
Microsoft acquired four industry solutions to extend the capabilities of Microsoft's enterprise resource
planning (ERP) products, Microsoft Dynamics AX. Also, the company acquired Teamprise-related assets
of SourceGear, which enable developers using the Eclipse IDE or operating on multiple operating
systems, including Unix, Linux and Mac OS X, to build applications with Microsoft Visual Studio Team
Foundation Server.
The company acquired BigPark, an interactive online gaming company based in Vancouver, British
Columbia. Subsequently, the company signed an agreement with Merck, a developer, manufacturer and
distributor of pharmaceuticals, and acquired certain assets of Rosetta Biosoftware, a business unit of
Rosetta Inpharmatics, a wholly owned subsidiary of Merck.
The company released the first public beta of Microsoft Windows HPC Server 2008, a server operating
system and tools designed for the high-performance computing (HPC) market.
The company made several acquisitions including Calista Technologies, a provider of graphics
technologies for desktop and presentation virtualization solutions; Kidaro, a provider of desktop
virtualization solutions for enterprises; Rapt, a provider of advertising yield management solutions for
digital media publishers; Danger, a provider of solutions to the mobile operators; Fast Search & Transfer,
a provider of enterprise search solutions; Navic Networks, a provider of television advertising solutions;
MobiComp, a company that allows backup and restoration of mobile data and mobile posting of social
content to web sites; and DATAllegro, a provider of breakthrough data warehouse appliances. The
company also sold Greenfield Online Internet survey solutions (ISS) business to ZM Surveys, a private
equity investment partnership focused on entertainment and media investments.
The company also entered into a strategic partnership with Reliance Communications to deliver internet
protocol television (IPTV) in India on the Microsoft Mediaroom Platform. Also, mass media provider
Viacom and Microsoft entered into a strategic alliance to collaborate on advertising, content distribution,
event promotions and games.
Logica and Microsoft formed a strategic relationship to launch an initiative called The Service Factory.
The company made several acquisitions, including Tellme Networks, a provider of voice services,
including nationwide directory assistance, enterprise customer service and voice-enabled mobile search;
aQuantive, a global digital marketing company; AdECN, an advertising exchange platform company;
Parlano, a developer of MindAlign, an application for enterprise group chat; Global Care Solutions (GCS),
a developer of enterprise-class health information systems; Musiwave, an Openwave company and a
provider of mobile music entertainment services; and Multimap, a global online mapping services provider
based in the UK.
Microsoft acquired MotionBridge, a provider of search technology designed specifically for mobile
operators and the mobile internet. Microsoft's acquisitions included the assets of Onfolio, an internet
research and information management provider; Apptimum; ProClarity, a developer of advanced analysis
and visualization technologies; Lionhead Studios, a video game developer and creator of Fable, Xbox;
Massive, a developer of a network for video game advertising, to deliver dynamic, relevant ads across
Microsoft's online services; Whale Communications, a provider of secure access products; Softricity, a
provider of application virtualization and dynamic streaming technologies; Winternals Software, a provider
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Microsoft Corporation
History
of Windows based enterprises with systems recovery and data protection solutions; Azyxxi, the health
intelligence software provider; and Colloquis, a provider of conversational online business solutions.
Microsoft acquired ActiveViews, a company based in Provo, Utah, to extend its business intelligence (BI)
platform; and GIANT Company Software, a provider of anti-spyware and internet security products. The
company acquired Sybari Software, a provider of security products that help businesses worldwide
protect their messaging and collaboration servers from viruses, worms, and spam; Groove Networks, a
provider of collaboration virtual office software; FrontBridge Technologies, a provider of managed
services that address corporate e-mail security, compliance and availability requirements; Teleo, a
provider of voice over internet protocol (VoIP) software and services; mediastreams.com, a software
company that develops communications applications based on VoIP technology; and FolderShare, a
provider of file synchronization and remote access technology.
Microsoft acquired the virtual machine solutions of Connectix, a provider of virtualization software for
Windows and Macintosh-based computing. Also, the company acquired PlaceWare, a provider of web
conferencing services that enables businesses to conduct real-time, interactive presentations and
meetings over the internet.
Microsoft set up its Indian headquarters.
The company acquired Firefly Network, a provider of technology that makes secure exchange of private
information on the internet possible; MESA Group, a Boston based company that offered tools and
services for customers who wish to transfer existing Lotus Notes applications to Microsoft Exchange
Server; and Valence Research, a developer of transmission control protocol/internet protocol (TCP/IP)
load balancing and fault tolerance software for the Microsoft Windows NT operating system.
The company entered into a partnership with Siemens and expanded into Brazil.
Microsoft signed an agreement with Apple to include Internet Explorer, a web browser application in the
latter's Macintosh operating system.
Microsoft launched MSN (Microsoft Network), an umbrella service division for all online services of the
company. Also, Microsoft launched Active X, an application programming based on Microsoft Component
Object Model (COM) interface to embed control in many programming languages including the scripting
languages such as Jscript and VBScript. Subsequently, it introduced Microsoft SQL Server 6.5, a data
base management system with inbuilt support for internet applications.
The company launched Microsoft Visual Basic, a development software product. Microsoft also launched
Windows for Workgroups 3.1, an operating system with networking capabilities. In addition, the company
launched Microsoft Access, database software, in the same year. Microsoft released Microsoft Windows
95, the company's flagship operating system. Subsequently, the company partnered with Spyglass, an
internet software company, and licensed the Spyglass's web browser as Internet Explorer, which was
later included in Windows 95 Plus edition of operating system. The company released Microsoft
Sidewinder 3D pro, a joystick.
The company released its OS/2 operating system for original equipment manufacturer (OEMs). Microsoft
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Microsoft Corporation
History
bought a relational database management system (RDBMS) from enterprise software and services
company Sybase and named it as SQL server. Also, the company introduced Microsoft Office, a bundle
of separate office productivity applications including Microsoft Word and Excel.
The company became a publicly traded company.
The company launched Microsoft Windows, a graphical extension of its MS-DOS operating system.
The company was relocated to Redmond, Washington in the following year.
Microsoft also partnered with IBM to provide OS/2 operating system.
The company started its first international production facility in the Republic of Ireland.
The company launched its first PC-specific mouse known as the Microsoft Mouse. Also, the company
started Microsoft Press, a book publishing division on various Microsoft technologies. Microsoft created
MSX, a home computer system.
Microsoft was incorporated.
The company entered into a contract with IBM to provide an operating system for IBM's personal
computer (PC) named PC-DOS.
The company acquired a variant of Unix from multinational telecommunications corporation AT&T and
launched it as Xenix, the company's first operating system.
Microsoft moved from Albuquerque to Bellevue, Washington.
The company started its first international office in Japan as ASCII Microsoft.
Microsoft Corporation (Microsoft or "the company") was founded when Bill Gates and Paul Allen
developed an interpreter for Basic programming language at Micro Instrumentation and Telemetry
Systems.
Microsoft Corporation
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Microsoft Corporation
Key Employees
Key Employees
KEY EMPLOYEES
Name
Job Title
Board
John W. Thompson
Chairman
Executive Board
Kurt DelBene
Chief Digital Officer and Senior Management
Executive Vice President,
Corporate Strategy, Core
Services Engineering and
Operations
Satya Nadella
Chief Executive Officer
Executive Board
Jeff Weiner
Chief Executive OfficerLinkedIn
Senior Management
Bala Girisaballa
Chief Executive OfficerMicrosoft Accelerator,
India
Senior Management
Michal Golebiewski
Chief Marketing and
Operations Officer,
Malaysia
Senior Management
Horace Chow
Chief Operating OfficerMicrosoft China
Senior Management
Kevin Scott
Chief Technology Officer
Senior Management
Ifeanyi Amah
Chief Technology Officer- Senior Management
Microsoft Nigeria
Compensation
690000 USD
17692031 USD
Rimini Haraya Makama Corporate Affairs Director, Senior Management
Microsoft Nigeria
Reid Hoffman
Director
Non Executive Board
Teri L. List-Stoll
Director
Non Executive Board
312500 USD
G. Mason Morfit
Director
Non Executive Board
302500 USD
Charles H. Noski
Director
Non Executive Board
332500 USD
Helmut Panke
Director
Non Executive Board
317500 USD
Sandra E. Peterson
Director
Non Executive Board
177500 USD
Charles W. Scharf
Director
Non Executive Board
287500 USD
John W. Stanton
Director
Non Executive Board
317500 USD
Padmasree Warrior
Director
Non Executive Board
162500 USD
Harry Shum
Executive Vice President- Senior Management
Artificial Intelligence and
Research Group
Margaret L. Johnson
Executive Vice President- Senior Management
Business Development
6716490 USD
Amy E. Hood
Executive Vice President- Senior Management
Chief Financial Officer
10374630 USD
Microsoft Corporation
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Microsoft Corporation
Key Employees
Christopher C.
Capossela
Executive Vice President- Senior Management
Chief Marketing Officer
Kathleen T. Hogan
Executive Vice President- Senior Management
Human Resources
Scott Guthrie
Executive Vice President- Senior Management
Microsoft Cloud and
Enterprise
Rajesh Jha
Executive Vice President- Senior Management
Office Product Group
Jean-Philippe Courtois Executive Vice President- Senior Management
President, Microsoft
Global Sales, Marketing
and Operations
Terry Myerson
Executive Vice President- Senior Management
Windows and Devices
Group
Judson Althoff
Executive Vice President- Senior Management
Worldwide Commercial
Business
William H. Gates III
Founder and Technology Non Executive Board
Advisor
Akin Banuso
General Manager-Nigerian Senior Management
operation
Sriram Rajamani
Managing DirectorMicrosoft India lab
Senior Management
Bradford L. Smith
President-Chief Legal
Officer
Senior Management
Microsoft Corporation
© MarketLine
8610612 USD
Page 27
Microsoft Corporation
Key Employee Biographies
Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
John W. Thompson
Board:Executive Board
Job Title:Chairman
Since:2014
Age:67
John W. Thompson has been the Chairman at Microsoft since 2014. Most recently, Mr. Thomson served
as the Chief Executive Officer at Virtual Instruments. He previously served as the Chairman and Chief
Executive Officer at Symantec. Mr. Thomson also held a number of leadership positions at IBM, including
sales, marketing, software development, and served as the General Manager of IBM Americas.
Kurt DelBene
Board:Senior Management
Job Title:Chief Digital Officer and Executive Vice President, Corporate Strategy, Core Services
Engineering and Operations
Kurt DelBene currently serves as the Chief Digital Officer and Executive Vice President of Corporate
Strategy, Core Services Engineering and Operations at Microsoft. From 2013 to 2014, Mr. DelBene
worked at Healthcare.gov as a Senior Advisor to the Secretary of Health and Human Services. He was
also the liaison to White House and Health and Human Services senior leadership. Prior to that, Mr.
DelBene served as the President at the Microsoft Office Division from 2010 to 2013. He joined Microsoft
in 1992, and held various positions, including the Senior Vice President for Microsoft Business Division;
the Vice President of Authoring and Collaboration Services, a General Manager of Microsoft Outlook, and
as the Group Project Manager for Microsoft Exchange. Prior to joining the company, Mr. DelBene worked
at McKinsey and Company as a Management Consultant.
Satya Nadella
Board:Executive Board
Job Title:Chief Executive Officer
Since:2014
Age:49
Satya Nadella has been the Chief Executive Officer at Microsoft since 2014. Prior to this, Mr. Nadella
served as the Executive Vice President of Cloud and Enterprise business at the company. Previously, he
was the Senior Vice President of R&D for the Online Services Division and the Vice President of the
Microsoft Business Division. Before joining Microsoft in 1992, Mr. Nadella was a Member of the
technology staff at Sun Microsystems.
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Microsoft Corporation
Key Employee Biographies
Reid Hoffman
Board:Non Executive Board
Job Title:Director
Since:2017
Reid Hoffman has been a Director at Microsoft since 2017. Mr. Hoffman also serves on the Boards at
private companies, including Edmodo, Convoy, and Blockstream. He joined Greylock Partners in 2009.
Mr. Hoffman co-founded LinkedIn in 2003 and served as the Chief Executive Officer. Prior to LinkedIn, he
served as the Executive Vice President at PayPal.
Teri L. List-Stoll
Board:Non Executive Board
Job Title:Director
Since:2014
Age:53
Teri L. List-Stoll has been a Director at Microsoft since 2014. Ms. List-Stoll served as the Executive Vice
President and Chief Financial Officer at DICK'S Sporting Goods. Previously, she served as the Executive
Vice President and Chief Financial Officer and as a Senior Advisor at Kraft Foods Group. Prior to that,
Ms. List-Stoll served at Procter & Gamble for 20 years, and held various roles in business unit
management, supply chain, sales, accounting, and financial planning and analysis, most recently as the
Senior Vice President and Treasurer. From 1991 to 1993, she served as a Fellow at Financial Accounting
Standards Board. Before that, Ms. List-Stoll worked for nine years at Deloitte & Touche. She serves on
the Boards at Danaher.
G. Mason Morfit
Board:Non Executive Board
Job Title:Director
Since:2014
Age:41
G. Mason Morfit has been a Director at Microsoft since 2014. Mr. Morfit is the President at ValueAct
Capital. Prior to that, he worked in equity research at Credit Suisse First Boston's healthcare group
covering the managed care industry. Mr. Morfit served as a Director at Valeant Pharmaceuticals
International, CR Bard, Immucor, Advanced Medical Optics, Solexa, and MSD Performance.
Charles H. Noski
Board:Non Executive Board
Job Title:Director
Since:2003
Age:64
Microsoft Corporation
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Microsoft Corporation
Key Employee Biographies
Charles H. Noski has been a Director at Microsoft since 2003. Mr. Noski served as the Vice Chairman at
Bank of America from 2011 until 2012. From 2010 through 2011, he served as the Executive Vice
President and Chief Financial Officer at Bank of America. From 2003 to 2005, Mr. Noski was the
Corporate Vice President and Chief Financial Officer at Northrop Grumman and served as a Director from
2002 to 2005. He joined AT&T in 1999 as the Senior Executive Vice President and Chief Financial Officer
and was named as the Vice Chairman at AT&T in 2002. Prior to that, Mr. Noski was the President, Chief
Operating Officer, and a Director at Hughes Electronics. He serves on the Boards at Avon Products and
The Priceline Group.
Helmut Panke
Board:Non Executive Board
Job Title:Director
Since:2003
Age:70
Helmut Panke has been a Director at Microsoft since 2003. Dr. Panke served as the Chairman of the
Board of Management at BMW from 2002 through 2006. From 1999 to 2002, he served as a Member of
the Board of Management for Finance. From 1996 to 1999, Dr. Panke was a Member of the Board of
Management for Human Resources and Information Technology. He joined BMW in 1982 and served as
the Chairman and Chief Executive Officer from 1993 to 1996. Dr. Panke serves on the Boards at
Singapore Airlines.
Sandra E. Peterson
Board:Non Executive Board
Job Title:Director
Since:2015
Age:57
Sandra E. Peterson has been a Director at Microsoft since 2015. Ms. Peterson serves as the Group
Worldwide Chairman at Johnson & Johnson. Prior to that, she served as the Chairman and Chief
Executive Officer at Bayer CropScience. Ms. Peterson also worked at Medco Health Solutions from 1999
to 2004.
Charles W. Scharf
Board:Non Executive Board
Job Title:Director
Since:2014
Age:51
Charles W. Scharf has been a Director at Microsoft since 2014. Mr. Scharf has been the Chief Executive
Officer and a Director at Visa since 2012. Prior to that, he was a Managing Director at One Equity
Partners. Before that, Mr. Scharf served as the Chief Executive Officer of Retail Financial Services at
JPMorgan Chase from 2004 to 2011 and as the Chief Executive Officer of Retail division at Bank One
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Key Employee Biographies
from 2002 to 2004. He also served as the Chief Financial Officer at Bank One, the Global Corporate and
Investment Bank division at Citigroup, and at Salomon Smith Barney and its predecessor company from
1995 to 1999.
John W. Stanton
Board:Non Executive Board
Job Title:Director
Since:2014
Age:61
John W. Stanton has been a Director at Microsoft since 2014. Mr. Stanton serves as the Chairman at
Trilogy Equity Partners. Previously, He served as the Chief Operating Officer and Vice Chairman at
Western Wireless. Prior to that, Mr. Stanton served as the Chairman and Chief Executive Officer at
VoiceStream Wireless which was acquired by Deutsche Telekom and subsequently renamed T-Mobile
USA. From 2008 to 2013, he served as the Chairman and a Director at Clearwire. Before that, Mr.
Stanton served as the Chief Operating Officer and Vice Chairman at McCaw Cellular. He serves on the
Board at Columbia Sportswear and Costco Wholesale. Mr. Stanton has been the Chairman at First
Avenue Entertainment since 2016.
Padmasree Warrior
Board:Non Executive Board
Job Title:Director
Since:2015
Age:55
Padmasree Warrior has been a Director at Microsoft since 2015. Ms. Warrior serves as the Chief
Development Officer and the Chief Executive Officer of the US office at NextEV. She also served as the
Chief Technology Officer at Cisco Systems. Prior to that, Ms. Warrior held various executive roles at
Motorola, most recently as the Executive Vice President and Chief Technology Officer from 2003 to 2007.
Margaret L. Johnson
Board:Senior Management
Job Title:Executive Vice President-Business Development
Since:2014
Age:54
Margaret L. Johnson has been the Executive Vice President of Business Development at Microsoft since
2014. Prior to this role, Ms. Johnson spent 24 years at Qualcomm where she held various leadership
positions across engineering, sales, marketing and business development. Most recently, she served as
the Executive Vice President at Qualcomm and the President of global market development where she
was responsible for commercializing new business opportunities and developing strategic relationships
for the company. Ms. Johnson was also responsible for Qualcomm's global marketing organization and
oversaw Qualcomm Labs, a wholly owned subsidiary of Qualcomm. Prior to joining Qualcomm, she
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Key Employee Biographies
worked as an Engineer at General Electric's Military Electronics Division.
Amy E. Hood
Board:Senior Management
Job Title:Executive Vice President-Chief Financial Officer
Since:2013
Age:44
Amy E. Hood has been the Executive Vice President and Chief Financial Officer at Microsoft since 2013.
Prior to this, Ms. Hood was the Chief Financial Officer at Microsoft's Business Division. She joined
Microsoft in 2002 and held several positions in the Server and Tools Business as well as the corporate
finance organization. Prior to that, Ms. Hood worked at Goldman Sachs in various investment banking
and capital markets group roles.
Christopher C. Capossela
Board:Senior Management
Job Title:Executive Vice President-Chief Marketing Officer
Since:2014
Age:46
Christopher C. Capossela has been the Executive Vice President and Chief Marketing Officer at Microsoft
since 2014. Mr. Caposella has over 20 years of experience at the company and held a variety of
marketing leadership roles. Previously, he served in the Microsoft Office Division and was responsible for
marketing the company's productivity solutions including Microsoft Office, Office 365, SharePoint,
Exchange, Lync, Project and Visio. Most recently, Mr. Caposella served as the Worldwide Leader of the
Consumer Channels Group, responsible for sales and marketing activities with OEM, operator and retail
partners.
Kathleen T. Hogan
Board:Senior Management
Job Title:Executive Vice President-Human Resources
Since:2014
Age:50
Kathleen T. Hogan has been the Executive Vice President of Human Resources at Microsoft since 2014.
Prior to this, Ms. Hogan was the Corporate Vice President at Microsoft Services. She also served as the
Corporate Vice President of Customer Service and Support at the company. Ms. Hogan joined the
company in 2003 as the Customer and Partner Experience and Worldwide Field Operations. Prior to that,
she worked at McKinsey and Oracle. Ms. Hogan sits on the Board of Directors at Puget Sound affiliate of
Susan G. Komen for the Cure and the Technology Services Industry Association.
Scott Guthrie
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Key Employee Biographies
Board:Senior Management
Job Title:Executive Vice President-Microsoft Cloud and Enterprise
Scott Guthrie serves as the Executive Vice President of Microsoft Cloud and Enterprise Group at
Microsoft. Prior to leading the Cloud and Enterprise group, Mr. Guthrie led Microsoft Azure, Microsoft's
public cloud platform. Since joining the company in 1997, he has made critical contributions to many of
Microsoft's key cloud, server and development technologies and was one of the original founders of the
.NET project.
Rajesh Jha
Board:Senior Management
Job Title:Executive Vice President-Office Product Group
Rajesh Jha currently serves as the Executive Vice President of Office Product Group at Microsoft. Most
recently, Mr. Jha served as the Corporate Vice President at the company. He joined the company in
1990. Mr. Jha began his career as a Software Design Engineer, working on various clients, servers and
services during his tenure.
Jean-Philippe Courtois
Board:Senior Management
Job Title:Executive Vice President-President, Microsoft Global Sales, Marketing and Operations
Since:2016
Age:55
Jean-Philippe Courtois has been the Executive Vice President and President, Microsoft Global Sales,
Marketing and Operations at Microsoft since 2016. Previously, Mr. Courtois served as the President of
Microsoft International. Before that, he held the same role for the EMEA region (Europe, Middle East and
Africa) as the Chief Executive Officer and President of Microsoft EMEA. Mr. Courtois joined Microsoft in
1984 as a Channel Sales Representative and was promoted to General Manager for Microsoft France in
1994. He is also the Chairman of the board of directors at SKEMA Business School, as well as a Board
Member at Positive Planet, a worldwide leading NGO.
Terry Myerson
Board:Senior Management
Job Title:Executive Vice President-Windows and Devices Group
Terry Myerson serves as the Executive Vice President of Windows and Devices Group at Microsoft. Prior
to this, Mr. Myerson led the Operating Systems Group. Previously, he led the Windows Phone team and
Exchange team. Before that, Mr. Myerson founded Interse, one of the first Web software companies.
Judson Althoff
Board:Senior Management
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Key Employee Biographies
Job Title:Executive Vice President-Worldwide Commercial Business
Judson Althoff currently serves as the Executive Vice President, Worldwide Commercial Business at
Microsoft. Prior to this role, Mr. Althoff was the President of North American operation at the company. He
joined Microsoft in 2013. Mr. Althoff previously spent 14 years at Oracle where he most recently served
as the Senior Vice President. He also worked at EMC.
William H. Gates III
Board:Non Executive Board
Job Title:Founder and Technology Advisor
Age:60
William H. Gates III serves as the Founder and Technology Advisor at Microsoft. Mr. Gates has been a
Director at the company since 1981. Prior to this, he was the Chairman of the Board at Microsoft from
1981 to 2014. Mr. Gates retired as an employee at Microsoft in 2008. He previously served as the Chief
Software Architect at the company from 2000 to 2006 and the Chief Executive Officer from 1981 until
2000. Mr. Gates is the co-Chair of the Bill & Melinda Gates Foundation and serves as a Director at
Berkshire Hathaway.
Bradford L. Smith
Board:Senior Management
Job Title:President-Chief Legal Officer
Since:2015
Age:57
Bradford L. Smith has been the President and Chief Legal Officer at Microsoft since 2015. Previously, Mr.
Smith served as the Executive Vice President, General Counsel, and Secretary at the company. He
joined Microsoft in 1993, and held various positions, including the Senior Vice President, General
Counsel, and Secretary in 2001, the Chief Compliance Officer in 2002, and as a Deputy General Counsel
for Worldwide Sales. Mr. Smith serves on the Board of Directors at Netflix.
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Major Products & Services
Major Products & Services
MAJOR PRODUCTS & SERVICES
Microsoft Corporation (Microsoft or "the company") develops, licenses, and supports a range of software
products and services. The company's key products, services and brands include the following:
Products:
Operating systems
Cross-device productivity applications
Server applications
Business solution applications
Desktop and server management tools
Software development tools
Video games
Training and certification of computer system integrators and developers
Personal Computers (PCs)
Tablets
Gaming and entertainment consoles
Phones
Related accessories
Services:
Cloud-based solutions
Solution support
Consulting services
Brands:
Windows
Office
Windows Azure
Skype
Xbox
Lumia
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SWOT Analysis
SWOT Analysis
SWOT ANALYSIS
Microsoft Corporation (Microsoft or "the company") develops, licenses, and supports a range of software
products and services. The company also designs, manufactures and sells devices that integrate with
cloud-based services. In addition, it offers relevant online advertising to global audience. Microsoft's
established market presence enables it to offer end-to-end solutions for consumer as well as enterprise
clients. In addition, it provides significant cross selling opportunities thus winning a larger share of the
client budget. However, declining PC market is expected to impact the demand for the company's
products thus shrinking its revenues and affecting margins.
Strength
Weakness
Strong R&D Capabilities
Broad Products and Services Portfolio
Established market presence
Legal Proceedings
Substantial Indebtedness
Opportunity
Threat
Increasing Adoption of Cloud Computing Services
Poised to Benefit from the Growing IoT Market
Strategic Acquisition of LinkedIn
Strategic Partnership with Adobe
Growing Application Servers Market
Adverse Trends in the PC Market
Government Litigation and Regulatory Activity
Intense Competition
Strength
Strong R&D Capabilities
Microsoft has a strong focus on research and development (R&D). The company commits significant
resources in developing technologies, tools, and platforms spanning digital work and life experiences,
cloud computing, and devices operating systems and hardware. In FY2016, approximately 37,000
associates were engaged in R&D activities. The company's main R&D facilities are located in Redmond,
Washington. Microsoft also operates R&D facilities in other parts of the US and around the world,
including Canada, China, Denmark, Finland, France, India, Ireland, Israel, Japan, and the UK. In addition
to its R&D operations, Microsoft operates Microsoft Research, a computer science research organizations
which work in close collaboration with top universities around the world. The company develops its
products internally through three engineering groups, including Applications and Services Engineering
Group, Cloud and Enterprise Engineering Group, and Windows and Devices Engineering Group.
The company's total R&D expense was approximately $12 billion, $12 billion, and $11.4 billion during
FY2016, FY2015, and FY2014, respectively. These amounts represented 14%, 13%, and 13% of the
company’s total revenue in FY2016, FY2015, and FY2014, respectively. The company's strong R&D has
enabled it to add a number of patents. At the end of FY2016, the company had a patent portfolio of over
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SWOT Analysis
61,000 issued in the US and international patents and over 35,000 pending patents. The company's
strong R&D focus has enabled it to launch new solutions. For instance, in October 2016, the company
introduced Surface Studio, a new class of device that transforms from a workstation into a powerful digital
canvas; Surface Dial, a new peripheral designed for the creative process; and Surface Book with
Performance Base, a laptop with 6th Generation Intel Core i7 processors. Further in September 2016,
Microsoft formed the Microsoft AI and Research Group, bringing together Microsoft’s research
organization with more than 5,000 computer scientists and engineers focused on the company’s AI
product efforts.
Strong R&D capabilities allow Microsoft to attain competitive advantage over its peers, maintain
technological edge over its competitors and to stay ahead of industry trends. In addition, it also allows the
company to differentiate its products with its competitors.
Broad Products and Services Portfolio
Broad range of products and services helps Microsoft to generate revenue from diversified sources, whilst
mitigating the risk associated with concentrated product and service offerings. The company operates its
business through three business segments: More Personal Computing; Productivity and Business
Processes; and Intelligent Cloud. More Personal Computing segment consists of products and services
for end users, developers, and IT professionals. This segment primarily comprises Windows, including
Windows original equipment manufacturer (OEM) licensing and other non-volume licensing of the
Windows operating system, volume licensing of the Windows operating system, patent licensing,
Windows Embedded, MSN display advertising, and Windows Phone licensing; Devices, including
Microsoft Surface, phones, and personal computer (PC) accessories; Gaming, including Xbox hardware;
Xbox Live, comprising transactions, subscriptions, and advertising; video games; and third-party video
game royalties; and Search advertising.
Microsoft’s Productivity and Business Processes segment consists of products and services in its portfolio
of productivity, communication, and information services, spanning various devices and platforms. This
segment primarily comprises Office Commercial, including volume licensing and subscriptions to Office
365 commercial for products and services such as Office, Exchange, SharePoint, and Skype for
Business, and related Client Access Licenses (CALs); Office Consumer, including Office sold through
retail or through an Office 365 consumer subscription, and Office Consumer Services, including Skype,
Outlook.com, and OneDrive; and Dynamics business solutions, including Dynamics ERP products,
Dynamics CRM on-premises, and Dynamics CRM Online. Intelligent Cloud segment offers public, private,
and hybrid server products and cloud services for businesses. The segment primarily comprises Server
products and cloud services, including SQL Server, Windows Server, Visual Studio, System Center, and
related CALs, as well as Azure; and Enterprise Services, including premier support services and Microsoft
consulting services.
Broad offerings reduces dependence on any particular segment, apart from minimizing its business risks,
and helping the company to serve a diversified customer base and generate higher revenue.
Established market presence
The company has an established presence in the software market. Microsoft is one of the leading players
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SWOT Analysis
in the software industry through its Windows operating system (OS) and Office utility tools. According to
industry estimates, the Windows OS had a market share of 89% during April 2016. Windows 10 was
installed on over 75 million personal computers (PCs) in its first four weeks, and passed 110 million after
10 weeks of its release. Further, the company had a market share of 11% in the cloud market, only next
to Amazon, which had a market share of 31%. According to the company, more than 1.2 billion people
use Office in 140 countries in 107 languages. In the software domain, the company's Office 365
Consumer subscribers increased to 23.1 million. The Office has been downloaded 340 million times on
iPhones, iPad, and Android devices. Microsoft Dynamics CRM Online seat additions more than doubled
year-over-year. Further in FY2016, Microsoft Azure revenue grew 113%, with usage of Azure compute
and Azure SQL database more than doubling year-over-year. Also 80% of Fortune 500 use Microsoft
Cloud. In addition, the company had more than 33,000 enterprise mobility services customers at the end
of FY2016. Also, Windows 10 is active on more than 400 million devices around the world. Furthermore,
Xbox Live monthly active users grew 33% year-over-year to 49 million. The company's app store had
over 669,000 apps for phones, desktops and tablets. Moreover, the company's Outlook.com has over 400
million active users, and Skype is used to make over three billion minutes of calls each day.
The company's robust presence enables it to offer end-to-end solutions for consumer as well as
enterprise clients. In addition, it provides significant cross selling opportunities thus winning a larger share
of the client budget.
Weakness
Legal Proceedings
The company is exposed to various lawsuits and litigations which could increase the costs and margins.
Antitrust and unfair competition class action lawsuits were filed against Microsoft in British Columbia. The
trial of the British Columbia action commenced in May 2016. The plaintiffs are expected to file their case
in chief in August 2016, setting out claims made, authorities, and evidence in support. A six-month oral
hearing is scheduled to commence in September 2017, consisting of cross examination on witness
affidavits. In 2014, Microsoft was informed that China’s State Administration for Industry and Commerce
(SAIC) had begun a formal investigation relating to China’s Anti-Monopoly Law, and SAIC conducted
onsite inspections of Microsoft offices in Beijing, Shanghai, Guangzhou, and Chengdu. SAIC started the
investigation relating to compatibility, bundle sales, file verification issues related to Windows and Office
software, and potentially other issues. In addition, the company has approximately 54 other patent
infringement cases pending against it. As on June 30, 2016, the company had accrued aggregate legal
liabilities of $521 million in other current liabilities. In addition, the company anticipates its legal costs
could reach approximately $1.6 billion in aggregate.
The fines would impact the company's cost structure adversely in turn impacting profitability and also
entails large outlays of cash. These lawsuits and litigations would also have a negative impact on the
brand image of the company.
Substantial Indebtedness
The company has a substantial amount of indebtedness. As of June 30, 2016, the company’s total debt
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SWOT Analysis
was $40,783 million. This amount of indebtedness could have important consequences which include
fulfilling cash obligations; limiting the company’s ability to fund potential acquisitions; dedicating a portion
of cash flow from operations to pay debts, which would reduce the availability of cash flow to fund working
capital requirements, capital expenditures and other general corporate purposes; limiting flexibility in
planning for, or reacting to, general adverse economic conditions or changes in business or industry in
which the company operates; and placing Microsoft at a competitive disadvantage compared to
competitors that have less debt.
In addition to the substantial amount of indebtedness, the company may incur additional indebtedness in
the future. If new debt is added to the current debt levels, the related risks that the company currently
faces could intensify. Substantial indebtedness could adversely affect the company’s operations and
financial results and prevent it from fulfilling obligations.
Opportunity
Increasing Adoption of Cloud Computing Services
The worldwide demand for cloud computing services is expected to grow significantly in the coming
years. Cloud computing is a computing infrastructure model, which enables delivery of software-as-aservice (SaaS). Appeal to cloud computing has been increasing as it enables companies to reduce their
expenses related to upfront royalty or licensing payments, investment in hardware infrastructure and
other operating expenses. According to MarketLine, the global cloud computing industry is expected to
generate total revenues of $89.3 billion in 2016, representing a CAGR of 34.2% between 2012 and 2016.
Furthermore, the performance of the industry is forecast to accelerate, with an anticipated compound
annual growth rate (CAGR) of 35.6% for the 2016-21 periods, which is expected to drive the industry to a
value of $409.6 billion by the end of 2021.
As the rate of businesses moving to the cloud continues to accelerate, Microsoft has several unique
advantages that can be leveraged to drive growth from its cloud offering which primarily includes
Windows Azure, Office 365 and Dynamics CRM. The company offers these cloud services through
Microsoft's Windows and Windows Phone operating systems, thus adding SaaS component to its PaaS
and IaaS services. In July 2016, GE partnered with Microsoft to bring its Predix platform for the Industrial
Internet available on the Microsoft Azure cloud for industrial businesses. Further, in February 2017,
Microsoft and Flipkart entered into a strategic partnership, whereby Flipkart will incorporate Microsoft
Azure as its public cloud platform.
The enterprises are moving to the cloud on their terms and often use hybrid solutions that include the
cloud and their existing datacenter investments. The company's increasing presence in the cloud
computing market and the growing end market will provide an opportunity for Microsoft to gain new
customers and increase its market share in the future.
Poised to Benefit from the Growing IoT Market
With increasing adoption of cloud services and the big data services, the Internet of Things (IoT) market
is rapidly growing. According to industry estimates, rising adoption of cloud platforms, development of
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SWOT Analysis
cheaper and smarter sensors, and evolution of high speed networking technologies has been driving the
demand for IoT and wearables. The IoT market is expected to reach $661.7 billion by 2021 from $157.1
billion in 2016, growing at a CAGR of 33.3% during 2016-21 periods.
Microsoft is poised to benefit from the strong growth in the IoT market. The company offers Microsoft
Azure IoT services that include Azure Event Hubs, Azure DocumentDB, Azure Stream Analytics, Azure
Notification Hubs, Azure Machine Learning, Azure HDInsight, and Microsoft Power BI. Further in April
2016, Microsoft collaborated with Rolls-Royce to bring new capabilities to Rolls-Royce customers. RollsRoyce will integrate Microsoft Azure IoT Suite and Cortana Intelligence Suite into its service solutions to
expand its digital capabilities to support the current and next generation of Rolls-Royce intelligent
engines.
The company's growing presence in the IoT market coupled with the growing end markets will enable it to
drive strong revenues and enhance its market share in the future.
Strategic Acquisition of LinkedIn
The strategic acquisition of LinkedIn is expected to enhance the company’s footprint in the enterprise
social media market and provide incremental growth prospects. In...
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