Microsoft 2004 Annual Report Download - page 8

BUSINESS DESCRIPTION (CONTINUED)
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fourth quarter of fiscal 2004 a reorganization which, effective July 1, 2004, will include the SMS&P organization in the
Microsoft Business Solutions segment. This change is designed to optimize our focus on delivering business applications
to small and mid-market segment businesses.
Microsoft Business Solutions. The Microsoft Business Solutions segment is responsible for developing and marketing
integrated, end-to-end business applications and services designed to help small and mid-market businesses achieve
success by becoming more connected with customers, employees, partners, and suppliers. The applications provide
integrated, end-to-end automation for financial reporting, distribution, project accounting, electronic commerce, human
resources and payroll, manufacturing, supply chain management, business intelligence, sales and marketing
management, customer relationship management, and customer service and support.
The segment consists of the businesses generated from Enterprise Resource Planning (Microsoft Great Plains,
Microsoft Navision, Microsoft Solomon and Microsoft Axapta – acquired through our purchase of Great Plains and
Navision); Microsoft CRM (Customer Relationship Management); Microsoft RMS (Retail Management System); and other
business applications and services. Microsoft Business Solutions products are sold, implemented, and supported through
a partner network consisting of value-added resellers, systems integrators, consultants, independent software vendors
(ISVs), accounting firms (national, regional, and local), application service providers (ASPs), and eBuilders. Microsoft
Business Solutions partners provide distribution, marketing, training, and support in the business application customer
segment. As described previously, beginning in the first quarter of fiscal 2005, the SMS&P organization, which was part of
the Information Worker segment, will be included in the Microsoft Business Solutions segment.
MSN. MSN is responsible for delivering online services that seek to empower people by bringing them closer to the
people and information that matter most to them. MSN provides personal communications services, such as e-mail and
instant messaging, and information services such as MSN Search and the MSN portals and channels around the world.
MSN manages many of its own properties, including health, autos, and shopping. MSN also creates alliances with leading
third parties for many channels, including top partners like MSNBC.com, a joint venture between NBC Universal and
Microsoft; Foxsports.com, a property of Fox Entertainment Group; Expedia.com and Match.com, operating units of
InterActiveCorp and CareerBuilder.com. MSN provides a variety of paid services resulting in revenue for the segment,
including MSN Internet Access, Premium Web Services (consisting of MSN Internet Software Subscription, MSN Hotmail
Plus, MSN Bill Pay, and MSN Radio Plus), and MSN Mobile services.
The segment generates revenue principally from advertisers on the MSN Web sites, from consumers through
subscriptions and transactions generated from MSN Premium Web Services, and from subscribers to MSN narrowband
Internet access. According to studies performed by Nielson Net Ratings and comScore Media Metrix, MSN Web sites are
among the most popular on the Internet, visited by more than 350 million unique users every month. MSN Hotmail is one
of the world’s largest e-mail services with more than 187 million accounts, and MSN Messenger is one of the world’s
largest instant-messaging services with more than 135 million accounts.
Mobile and Embedded Devices. The Mobile and Embedded Devices segment is responsible for the development and
marketing of products that extend the advantages of the Windows platform to many types of devices, including mobile
devices that incorporate voice, personal information management, and media capabilities, and a wide variety of other
devices designed to improve people’s personal and work lives. Microsoft’s vision for mobile devices is rooted in the
convergence of the computing and wireless industries, which brings new opportunities to improve communication and
information access for customers. We see software as a key differentiator in making smart devices and wireless data
services valuable to customers through rich experiences such as location-based services, media, and speech recognition.
We are working closely with mobile operators, hardware and ISV partners to accelerate the development and availability
of smart devices and services, and to provide a broad range of choices for customers. Further, the segment is responsible
for managing sales and customer relations with device manufacturers and with network service providers, including
telecommunications, cable and wireless companies, and host and network equipment providers.
The segment consists of the Windows Mobile software platform, the Windows Embedded device operating system
family, MapPoint, and Windows Automotive. The Windows Mobile software platform provides a familiar and integrated
customer experience that is the basis for specific products like the Pocket PC, Pocket PC Phone Edition, Smartphone,
and new Portable Media Center. Windows Embedded, including Windows CE and Windows XP Embedded, is a family of
embedded device software platforms used in non-PC computing devices. Windows Embedded software is used widely in
advanced consumer electronics devices, including digital televisions, Internet Protocol (IP)-based set top boxes, network
gateways, and portable media players, as well as in enterprise devices such as industrial controllers, retail point-of-sale
systems, and voice-over-IP phones. The MapPoint family of location-enabled products and services includes the
MapPoint Web Service, a hosted programmable XML Web service that allows developers to integrate location intelligence