The most startling bar on that chart is the one for Windows OEM revenue. Xbox hardware is a big part of that number, but the acquisition of Mojang (maker of Minecraft) and dramatic increases in Xbox Live services and sales of games made more of a difference. I was surprised to see gaming in such a dominant position. Collectively, that pair is at the top of the list. Microsoft Azure is growing rapidly and is reported in the same group as traditional server products (SQL Server is up, Windows Server is down). Unlike Google and Apple, which each have a single dominant product, Microsoft has spread its chips around the table, with no product contributing more than 20 percent of the total. Fortunately, there are enough clues in the Management's Discussion and Analysis section of the 10-Q to break out most of those details. Yes, you need a secret decoder ring (and a copy of Excel) to figure out what's in each of those segments. Its latest reorganization divides the company into three reporting segments with names that are oh-so-Microsoft: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Teasing information out of Microsoft's official reports is a tricky job. But the actual revenue from these projects ($481 million for the entire year) is too small to show up in my chart. This includes businesses such as Access/Google Fiber and Nest. Under the new reporting structure, Alphabet combines "multiple operating segments that are not individually material" into a category called Other Bets. From 2013 to 2015, the share of ad revenue from Google Network Members' websites decreased from 24.6 percent to 20.2 percent, with Google's own sites benefiting from the shift. One detail that isn't obvious from this chart is the shift in where Google's advertising growth is coming from. The other 10 percent comes primarily from the following segments, in order: sales of apps and media content in the Google Play store Google-branded hardware such as Chromecast and Nexus phones fees for apps and cloud services and licensing revenue. That's slipped in recent years to 90 percent. Six years ago, Google earned 97 percent of its revenue from advertising. Google still contributes virtually all of Alphabet's revenue (99.4 percent), and the overwhelming majority of that revenue (89.9 percent) comes from advertising. The org chart might look different, but the business hasn't changed. Larry Page and Sergey Brin changed their company's corporate structure last year, turning Google into a subsidiary of a new parent holding company, Alphabet, Inc. But all three companies are large and profitable, and because revenue is the measure that's most fully reported, it offers the best comparison.) Google (Alphabet) (Yes, there's a case to be made for looking at the profitability of each of those segments and to consider the international balance of each company's business. Here's a snapshot of each company, showing revenues by product category as a percentage of the total. For Apple and Microsoft, which have a different fiscal year, I used the quarterly 10-Q reports. #Microsoft money for apple fullBecause the fiscal year for Google's parent company, Alphabet, ends on December 31, I was able to use its 10-K annual filing and examine its business based on a full year's revenue. (For a look back at previous editions, see my 20 installments.)Īll three companies filed reports in January. That's what I've been doing for the past few years with the SEC-mandated earnings reports for the three largest public companies in computing. #Microsoft money for apple how toHere are the pros and cons, and how to make it happen. Business executives are increasingly moving to an IT environment that is no longer focused on big, long projects but shorter, more sustainable efforts to drive change and innovation.
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