Business model – here’s the report on what makes money for Microsoft.
Microsoft has significantly higher revenues from several of its businesses than from Windows sales. The big business is in cloud services, but in 2023 the company also made a big splash with other things.
Where does Microsoft’s money come from?
What happened? Microsoft’s recent business report reveals that the largest part of the company’s revenue does not come from the sale of Windows. In vain, many people think it is the company’s most important and most profitable product. Their games also bring more money to the coffers than the operating system. But the biggest money is in the cloud and Office businesses.
In the last quarter of 2023, Microsoft reported a total revenue of 62 billion dollars and a net profit of 21.9 billion dollars.
How much growth is that? This means an increase of 18 and 33 percent on an annual basis. Almost 60 percent of the company’s revenue came from money from Office and cloud services. The games came in third place.
PCFórum notes that the reason for the jump in game revenues last year is that the company already records as its own income, together with the income from Xbox, the income added by the acquisition of Activision Blizzard.
What did the big chip come from? Thus, the results of the gaming division reached 7.11 billion dollars in the fourth quarter. In addition, Windows brought in 5.26 billion. 13.47 billion came from Office and 23.95 billion from cloud services in the period under review.
How is Microsoft doing now? Microsoft became the world’s most valuable company in the ranking of the British news agency Reuters in January with $2,887.2 billion. Second is Apple with 2,874.7 billion, and third is Saudi Arabian Oil with 2,120.8 billion.
Microsoft has signed the face of AI, and it shows in its price
In the past year, Microsoft – like Nvidia and Amazon – has placed a significant emphasis on the development of artificial intelligence, and this has given the company a huge boost. (Source: Forbes, image: Pexels)
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