Microsoft changes its financial reporting structure to facilitate its mobile-first, cloud-first strategy
Microsoft is making big changes to how the company reports its finances in the future to mend with its cloud-first and mobile first mantra.
With everything that has been going on with Microsoft in recent months, we can understand why a lot of folks may have missed out on this very important message from Microsoft. After all, the launch of Office 2016 and the recently held Windows event are impressive, but still, this is still important nonetheless.
According to Microsoft, big changes are coming, and they will begin in the 2016 fiscal year, which technically started in July 2015. The changes will be based on three important segments in the company, and we’re going to lay them out right here.
More personal computing:
This segment is all about the results from licensing Windows operating systems and devices such as the Xbox, Lumia smartphones, Surface computers, the Microsoft Band, HoloLens and just all devices in general.
It also includes search, but not in a big way.
The intelligent cloud:
We understand that this segment will deliver results from hybrid, private, and public server products within Microsoft. These includes Windows Server, SQL Server, System Center, Azure, and Enterprise Services.
Business processes and productivity:
This particular segment is all about showing the results of Office and Office 365, two big money makers at Microsoft today.
In the past, Microsoft chose to add those three segments into two other segments, but now things are different, and it has everything to do with Microsoft’s decision to venture down the path of cloud-first and mobile-first.
According to Microsoft, it held a conference call on September 29, 2015 with Frank Brod, corporate vice president and chief accounting officer, and Chris Suh, general manager, investor relations, where it answered questions regarding the new changes.