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Friday, April 27, 2018

Microsoft Windows adapts as its business importance declines





For Microsoft, Windows is no longer a core business that complements other companies' products.

Microsoft is still earning money on Windows, a computer operating system leading Microsoft's brand more than 30 years ago. However, Windows business share is declining.

On Thursday, the company's third quarter turnover of up to 16% last year's $ 26.8 billion. In contrast, Windows license revenue increased by 4%.

Because the Washington State Redmond company uses Windows for other investment products to individuals and companies, sales of Microsoft Windows is not low growth of concern. This means that 10 free updates of Windows provide a few years, even if the customer does not regularly purchase all new versions.

“By making Windows less restrictive, they’re creating a more beneficial environment for the adoption of other products,” Morningstar analyst Rodney Nelson said.

According to Chief Executive Officer, Satya Nadera, Microsoft is increasing investment in Internet-based services, and because they are less likely to purchase Windows without PC, , Said that they will spend time on mobile phones and other devices.

The service is mainly designed for enterprise customers, including Office 365 family of business applications, cloud computing Azure services, as well as subscriptions to email and spreadsheets. For individuals, Microsoft Windows will guide you through users using ad supported services on the portal of Xbox gaming systems (such as Bing search).

Sales of companies that rely heavily on Windows licenses are bold moves. Apple still accounted for 29% of the total sales of Windows, Microsoft, three years later, launched the company within three years after starting shaking the PC market after the first iPhone in 2010. As of last year, Windows' s annual revenue is about $ 15 billion. This is almost the same as 10 years ago, but it accounts for about 16% of the entire company.

As cloud and Office results, Microsoft 1-3 March revenue surpassed Wall Street's forecast for revenue and profit. We recorded a profit of 74.2 billion dollars (95 cents per share).

The company did not disclose all sales of Windows in the quarterly report. Manufacturers who install Windows on PCs and servers pay license fees to earn money.

Nelson said that Microsoft will continue to benefit from consumers and businesses, consumers and businesses following Windows 7 or Windows 8 in cycles, and will switch to the new computer 's Windows 10' s.

But by 2014 Nelson predicted that the company's CEO Nadella 's long - term prospects will slow down sales of Windows over time.

“Pretty much from Day 1 Satya has been de-emphasizing Windows,” Nelson said. “Windows probably isn’t going to matter nearly as much in 10 years as it did 10 years ago.”

Nadella emphasized the importance of the Windows division into organizational restructuring last month to show it to external audiences. Terry Meyerson, a long-term executive in charge of Windows, resigned.

However, Mr. Nadera told the staff via e-mail that "the future of Windows is bright." It is because it is deeper than other Microsoft products.

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