Microsoft Claims Road Map, Vision Are Driving Customer Wins
On a call with analysts, Klein added, "On the infrastructure side, the Server & Tools Business delivered double-digit revenue growth, with SQL Server leading the way. We've now launched System Center 2012 and SQL Server 2012, and the new versions of Windows Server and Visual Studio are on the horizon. Our product road map and vision are driving new customer wins and strong Enterprise Agreement renewals. We are confident that we are uniquely positioned to address the needs of CIOs as they strive to efficiently manage private and public clouds." The Microsoft Online Services Division reported revenue of $707 million, a 6 percent increase from the prior-year period."In gaming and entertainment, while industry console sales were softer than our expectations, we continue to maintain our shared leadership position," Klein told analysts. "With Xbox LIVE, we are adding more content and partners as we expand the entertainment experience and build on our leading position in the living room." Krans said 2012 marks an important year for Microsoft in terms of transitioning core lines of business to mirror current IT trends in cloud and flexible IT consumption. "After successfully launching Office 365 in 2011, Microsoft will look to replicate this early success with product deployments in other core business groups, including Server and Tools, Business, and Windows Division," he said. "The launch of SQL Server 2012 and Systems Center 2012 during 1Q12 and the anticipated launch of Windows 8 in early 2012 and Office 15 in late 2012 will write the script for how Microsoft's business performs beyond 2012." Moreover, TBR reported:
However, Microsoft's Entertainment & Devices Division posted revenue of $1.62 billion, a decrease of 16 percent from the prior period due to a soft gaming console market. Despite the drop, Xbox remained the top-selling console in the United States for the 15th consecutive month, and the company announced new television content partners and experiences for its 40 million Xbox LIVE members.
"Microsoft will build off its broad install base on PCs in the enterprise market, as tablets and mobile phones have yet to catch on as the primary device for work (and may never will). The point of focus for Microsoft's long-term success of Windows in both the consumer and enterprise markets will be capturing adoption in the consumer space. With PC shipments declining in the consumer space, the adoption of Windows 8 tablets and mobile devices is crucial to the long-term success of Windows in the consumer market. The mobile OS space, a market that Windows has yet to capture, is already heavily saturated by the Android and iOS platforms. For Microsoft, the ability to capture adoption from both the developer and end-user sides of spectrum and demonstrate the flexibility of Windows 8 across both PCs and mobile devices will be the make or break point for Windows 8 in the consumer space."