Microsoft: good results with Windows Live

Sales of Windows 7 are instrumental in this result. Microsoft continues to suffer a net loss on the division line services, and other segments are relatively stagnant. For example, Server and Tools division knows a small increase of 2% compared to 2009. This division continues still to encrypt up to 50% in the corporate segment.
This leaves the side of the Windows division and Windows Live. Microsoft reported a turnover of 4.4 billion dollars for this division alone, an increase of 28%, with net income up 34% to $ 3 billion. “The strong demand for Windows 7 is the largest contributor to our performance,” said Peter Klein, the CFO of Microsoft. “Internal and external studies show that over 10% of the world’s PCs are already running Windows 7” after six months of launch.
According to Bill Koefoed, in charge of business relations in Redmond, the demand of small and medium enterprises has not wavered either, increasing 15% over the year. “For this segment of business, we saw the beginning of a return of IT hardware spend, but we continue to see sales cycles lengthened. The sale of Windows licenses grew 35% in the general public, and 15% for businesses. Koefoed sees this second figure indicates a resumption of updates to Computer network, which should continue during fiscal 2011, according to Peter Klein.
Side-line services, which include search engine Bing and MSN portal, revenues have been generated, but they were offset by a loss of $ 713 million in operating profits. Koefoed yet announced that Bing had 10 consecutive months of growth in the market for search engines since its launch. Microsoft hopes to see the first revenues from the partnership with Yahoo to get from the second half of fiscal 2012.
These good results have nevertheless been tempered by those of IBM, Apple and Intel, which could suggest that Redmond would experience as an outstanding quarter in the enterprise market. Despite posting a larger than expected by analysts, Microsoft has experienced the same disappointment that Yahoo’s market, with a 4% drop in its share after the publication of results

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Eli Wads is one of our expert authors in technology and business fields.Currently living in San Marino, Eli has graduated at Southwestern Academy with a Bachelor Degree in business in 2008. Contact him by dropping him an e-mail at

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