Part Three Online Services Business and Entertainment and Devices Division

The Online Services Business (OSB) provides personal communications services, such as e-mail and instant messaging and online information offerings, such as Live Search and MSN portals and channels worldwide. OSB also provides a range of online services, such as MSN Internet Access, MSN Premium Web Services and OneCare. OSB manages many of its own properties, including home page, health, auto and shopping. In addition, OSB creates alliances with third parties, such as CareerBuilder.com, Expedia.com, Foxsports.com, Match.com, and MSNBC.com. OSB generates revenue primarily from online advertising, subscriptions and transactions of online paid services, as well as MSN narrowband Internet access subscriptions.

During fiscal 2007, the Company launched new online initiatives, including Windows Live Search and Live.com in 54 international markets, Live Local Search in the United States and United Kingdom, beta versions of MSN Soapbox (expansion of the MSN Video experience), Virtual Earth 3D, Windows Live Hotmail and others. The Company’s products in OSB segment includes MSN Search, MapPoint, MSN Internet Access, MSN Premium Web Services (consisting of MSN Internet Software Subscription, MSN Hotmail Plus, MSN Bill Pay, and MSN Radio Plus), Windows Live, and MSN Mobile Services.

In this segment, the Company competes with AOL, Google, Yahoo! and Earthlink.

Microsoft Business Division

Microsoft Business Division (MBD) offerings consist of the Microsoft Office system and Microsoft Dynamics business solutions. Microsoft Dynamics products provide business solutions for financial management, customer relationship management, supply chain management, and analytics applications for small and mid-size businesses, large organizations and divisions of global enterprises. Approximately 75% of MBD revenue is generated from sales to businesses. Approximately 25% of MBD revenue is derived from sales to consumers. The products in MBD includes Microsoft Office, Microsoft Project, Microsoft Visio, Microsoft Office SharePoint Server, Microsoft Exchange Server, Microsoft Exchange Hosted Services, Microsoft Office Live Meeting, Microsoft Office Communication Server, Microsoft Office Communicator, Microsoft Tellme Service, Microsoft Dynamics AX, Microsoft Dynamics CRM, Microsoft Dynamics GP, Microsoft Dynamics NAV, Microsoft Dynamics SL, Microsoft Dynamics Retail Management System, Microsoft Partner Program and Microsoft Office Accounting.

In this segment, the Company competes with Apple, Corel, Google, IBM, Novell, Oracle, Red Hat, Sun Microsystems, AjaxWrite, gOffice, iNetOffice, SimDesk, ThinkFree and wikiCalc.

Entertainment and Devices Division

The Entertainment and Devices Division (EDD) is responsible for developing, producing, and marketing the Xbox video game system, including consoles and accessories, third-party games, games published under the Microsoft brand, and Xbox Live operations, as well as research, sales and support of those products. In addition to Xbox, the Company offers the Zune digital music and entertainment device, PC software games, online games, Mediaroom, the Company’s Internet protocol television (IPTV) software, and other devices. EDD also leads the development efforts of its line of consumer software and hardware products, including application software for Macintosh computers and Microsoft PC hardware products, and is responsible for all retail sales and marketing for Microsoft Office and the Windows operating systems.

EDD also includes the mobile and embedded devices platform and is responsible for managing the Company-wide sales and customer relations with device manufacturers and other communication-sector customers, including network service providers and media and entertainment companies. The Company’s EDD products include Xbox 360 console and games, Xbox Live, Zune, Mediaroom, numerous consumer software and hardware products, such as mice and keyboards, Windows Mobile software platform, Windows Embedded device operating system and Windows Automotive.

In this segment, the Company competes with Nintendo, Sony, Apple iPod, Nokia, Openwave Systems, Palm, QUALCOMM, Research In Motion, Symbian. IBM, Wind River, Metrowerks and MontaVista Software.

Taken from the Source: Reuters, Company Profile

Part Two Client, Services and Tools

The Client segment has overall responsibility for the technical architecture, engineering and product delivery of the Company’s Windows product family, and is also responsible for its relationships with PC manufacturers, including multinational and regional original equipment manufacturers (OEMs). During the fiscal year ended June 30, 2007 (fiscal 2007), the Company released Windows Vista, the Windows operating system. The Company’s products in the Client segment includes Windows Vista, including Home, Home Premium, Ultimate, Business, and Enterprise Starter Edition; Windows XP Professional and Home; Media Center Edition; Tablet PC Edition, and other standard Windows operating systems.

In the Client segment, the Company competes with Apple Computer, Hewlett-Packard, IBM, Mozilla and Sun Microsystems.

Server and Tools

Server and Tools develops and markets software server products, services and solutions. Windows Server products are integrated server infrastructure and middleware software designed to support software applications and tools built on the Windows Server operating system. Windows Server products include the server platform, database, storage, management and operations, service-oriented architecture platform and security software. The segment also builds standalone and software development lifecycle tools for software architects, developers, testers and project managers. Server products can be run on premise or in a hosting environment.

The Company offers a range of consulting services and provides product support services and customer industry solutions. Server and Tools segment also provides training and certification to developers and information technology professionals about its Server and Client platform products. Server and Tools also includes the enterprise partner group, which is responsible for sales, partner management, and partner programs for medium and large organizations, and the public sector sales and marketing organization. The Company’s products in the Server and Tools segment includes Windows Server operating system, Microsoft SQL Server, Microsoft Enterprise Services, product support services, Visual Studio, System Center products, Forefront Security products, Biz Talk Server, Microsoft Developer Network (MSDN) and TechNet.

In the Server and Tools segment, the Company competes with Hewlett-Packard, IBM, Sun Microsystems, Novell, Red Hat, VMWare, Computer Associates, Oracle, BMC, McAfee, Symantec, Trend Micro, Adobe, BEA Systems and Borland.

Taken from the Source: Reuters Company Profile

Part One, Company Overview

Microsoft Corporation, incorporated in 1981, develops, manufactures, licenses and supports a range of software products for computing devices. The Company’s software products include operating systems for servers, personal computers (PCs) and intelligent devices, server applications for distributed computing environments, information worker productivity applications, business solution applications, high-performance computing applications and software development tools. It provides consulting and product support services, and trains and certifies computer system integrators and developers. Microsoft Corporation sells the Xbox 360 video game console and games, the Zune digital music and entertainment device, PC games, and peripherals. Online offerings and information are delivered through its Windows Live, Office Live, and MSN portals and channels. The Company enables the delivery of online advertising through its adCenter platform. The Company has five segments: Client, Server and Tools, the Online Services Business, the Microsoft Business Division, and the Entertainment and Devices Division.

In June 2008, the Company announced the acquisition of Navic Networks, a provider of television advertising solutions. Navic will join Microsoft’s Advertiser and Publisher Solutions (APS) Group. In April 2008, the Company completed the acquisition of Danger, Inc. and Fast Search & Transfer ASA. In December 2007, the Company acquired Multimap, a provider of online mapping services. Multimap will operate as a wholly owned subsidiary of the Company, as part of the Virtual Earth and Search teams in the Online Services Business. In August 2007, the Company acquired aQuantive Inc. In May 2007, it completed the acquisition of Tellme Networks Inc., a provider of voice services, including nationwide directory assistance, enterprise customer service and voice-enabled mobile search. In October 2006, it acquired Colloquis Inc., a provider of conversational online business solutions that feature natural language processing technology. In October 2007, the Company announced that it has launched Microsoft Health Vault, software and services platform.

Taken from the Source: Reuters, Company Profile