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Microsoft STB and its $1 Billion Businesses

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Bangalore: Microsoft announced that their Server and Tools Business (STB) department has added six unique departments to the company’s billion dollar business club. Microsoft also hinted that the list will get better in coming months.

The Server and Tools Business department is one of Microsoft’s strongest possession, both in terms of revenue and brand value. With the word ‘Server’ becoming more common in the IT mainstream, it’s apparent that the STB department will be grossing more in coming years.

According to STB's chief financial officer Curt Anderson, Microsoft's Server and Tools Business now houses six of the $1 billion businesses, namely

Windows Server

System Center

SQL Server

Visual Studio

Desktop Access Business

Enterprise Services Business

Among the six businesses, the first four already were on Microsoft’s previously published $1 billion list. On that occasion, the company mentioned that Desktop access may get a chance to embrace the group by 2010.

The recent scenario also indicates that Microsoft is looking up to their second fastest-selling product ever, Office 365 (SharePoint is Microsoft’s first) as the next entrant to the $1 billion list.

But comparing the revenue of STB department ($4.552 billion) to that of Online Services Division ($697 million), it’s a shame that with these many years into the internet, Microsoft still is unable to profit from online services.

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Reader's comments(1)
1: This is NOT a failing of Microsoft.

Microsoft's past success in online services is it's own biggest barrier to make it profitable - people's expectations are still stuck in the old world that anything online needs to be free (or in the case of MS, pirated).
Posted by:jay - 21 Nov, 2012