The real turning point for Microsoft came when back in 2016 it became the go-to platform for developing machine learning models for an AI research lab called OpenAI!
The most interesting part is that by 2019, servers and cloud services passed the Microsoft Office revenues, thus making them the main products for the company.Īlso, the acquisition of LinkedIn has allowed Microsoft to enter the social media market.Īs a dominant tech company, Microsoft tries to keep innovating and acquiring companies that allow it to enter new markets quickly. Microsoft is among the largest tech giants, which in 2021 made over $168 billion in revenues. Microsoft has a diversified business model spanning Office products, Windows, Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and more. Understanding Microsoft’s business model today Enterprise (GitHub) generated $7.4 billion, and devices (PC) generated almost $7 billion. Windows generated $24.7 billion, Gaming generated over $16 billion, LinkedIn over $13 billion, and search advertising (through Bing) over $11.5 billion. In 2021, Microsoft made over $198 billion in revenues, of which over $67 billion came from Server products and cloud services, and $44.8 billion came from Office products and cloud services. Microsoft has a diversified business model, spanning from Office to gaming (with Xbox), LinkedIn, search (with Bing), and enterprise services (with GitHub). Digital Business Models Podcast by FourWeekMBA.Business Strategy Book Bundle By FourWeekMBA.
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