Putting it all Together
Putting it all Together
In the past year Microsoft has generated a revenue of 85.3 billion dollars, a gross margin of 52.5 billion dollars and has been operating on 20.2 billion dollars as income. However it managed to adapt to Windows 10 requirements of an income of 92 billion dollars for purposes of integration and rebuilding with 27.9 billion dollars used as a management income. Despite Microsoft investing in innovations and expanding their territories, it maintained its position in staying engaged with giving back returns to the shareholders and increased their cash returns to 26.1 billion dollars which went up by 12% from the previous fiscal year. Thus the results clearly shows how the customers are excited with the new innovations (Microsoft 2016 Annual Report)
Cloud has been generating a profit that go beyond 12.1 billion dollars annually which has been higher than 50 percent after every year. An approximate population of 70 million people have access and interact with office 365 commercial monthly. The revenue generated from the cloud platform and azure has tripled. The use of databases and key computing has been doubling over the years. The population of devices using Windows 10 active in the world is approximately 400 million and they are using them for 197 billion hours. This has yielded more success in Microsoft in terms of usage and adoption (Microsoft 2016 Annual Report)
Bing has been able to tap and use new innovations for purposes of getting more profits in search advertisements. It increased its revenue for up to 17 percent. The percentage acquired is just from advertising and not with the profits acquired from traffic costs. Xbox live has increased its users and customers also because of the new innovations. The users have increased by 33 percent yearly yielding a population of 49 million (Microsoft 2016 Annual Report)
Microsoft is working on some changes that are ideas for good and better businesses. One of the changes that the CEO talks about is on computing and societal impact. This initiative is aimed at helping the challenges faced by humankind through technology and how the company can assist in achieving it. This change is good because as shared by (Allin, 2014), there are issues and challenges like globalization which has affected economy and the capita gross domestic product is estimated as one percent. Thus Microsoft through the chief executive Officer will work to address such issues.
Another change Microsoft is working on is on investing in the future. This involves investing in innovation, upcoming technologies and long lasting computing successes. Microsoft has reputable employees who are innovative, creative and are in a position to come up with better products that yield more success in the digital world. This is a good change because it will assist in curing and treating diseases and in addressing challenges associated or caused by climate change (Peng, 2016).
Intelligent Cloud is another change that the chief executive officer wants to address. According to (Peng, 2016), many organizations require better cloud based infrastructures and applications for purposes of aiding them to analyze and make their data accessible. This change has proven to give Microsoft more profits over the years. This new initiative is also beneficial for customers such that they can access to solutions and not get worried because they will be able to satisfy the real world needs. It is also suitable for all customers.
Microsoft 2016 Annual Report. (n.d.). Retrieved April 07, 2017, from https://www.microsoft.com/investor/reports/ar16/index.html
Peng, M. W. (2016). Global business. Cengage learning.
Allin, P. (2014). The Well‐Being of Nations. John Wiley & Sons, Ltd.
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