Revenue of Microsoft from Significant Product/Service Categories 2016-2018
The following table shows the revenue of Microsoft from significant product/service categories for the period between 2016 and 2018. The sums are in millions.
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Four largest product/service categories that account for the largest part of Microsoft’s revenue for the period between 2016-2018 are Office products and cloud services, Server products and cloud services, Windows and gaming. Microsoft revenue from Office products and cloud services was highest in 2018 at 28.32 Billion dollars, rising from 25.6 Billion dollars the previous year. Its revenue form server products and cloud services in 2018 was 26.13 Billion dollars rising from 21.65 Billion dollars, the previous year. Windows accounted for 19.52 Billion dollars of Microsoft’s total revenue in 2018, rising from 18.6 Billions the previous year. Revenue from gaming was 10.3 Billion dollars rising from 9 Billion dollars in 2017.
“Microsoft is a technology company whose mission is to empower every person and every organization on the planet to achieve more (Annual Report, 2018)”.
It generates revenue by licensing and supporting a large array of software products; offering a wide range of cloud-based and other services to individuals and business enterprises; designing, manufacturing, and selling devices; and through relevant online advertising to a global audience. Most significant among Microsoft’s expenses are those related to employee compensation; designing, manufacturing, marketing, and sales of products and services; datacenter costs that support its cloud-based services; and income taxes.
The most significant product categories which generate the highest part of the company’s revenue are Office products and cloud services, Server products and cloud services, Windows, Gaming, Search advertising, enterprise services, Devices, Linked In and Others. On December 8, 2016, Microsoft completed the acquisition of LinkedIn Corporation for $27.0 billion.