Microsoft 2008 Annual Report Download - page 15

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BUSINESS DESCRIPTION (CONTINUED)
Select licensing. Designed primarily for medium-to-large organizations (greater than 250 licenses), this
program allows customers to acquire perpetual licenses and, at the customer’s election, Software
Assurance, which consists of rights to future versions of certain software products, support, tools, and
training over a specified time period (generally three years). Similar to the Open program, customers can
acquire licenses only, acquire licenses with Software Assurance, or renew Software Assurance upon the
expiration of existing volume licensing agreements.
Enterprise Agreement licensing. The Enterprise Agreement is targeted at medium and large
organizations that want to acquire perpetual licenses to software products for all or substantial parts of their
enterprise, along with rights to future versions of certain software products, support, tools, and training over
a specified time period (generally three years).
Online. We distribute online content and services through Live Search, Windows Live, Office Live, our MSN
portals and channels, the Microsoft Online Services platform, which includes offerings for business, and other
online channels. OSB delivers Internet access and various premium services and tools to consumers. OSB also
delivers online email and messaging communication services and information services such as online search,
advertising, and premium content. EDD operates the Xbox Live service which allows customers to participate in
the gaming experience online with other subscribers. We operate and deliver the Microsoft Small Business Center
portal. This portal provides tools and expertise for small-business owners to build, market, and manage their
businesses online. Other services delivered online include Microsoft Developer Networks subscription content
and updates, periodic product updates, and online technical and practice readiness resources to support our
partners in developing and selling our products and solutions.
CUSTOMERS
Our customers include individual consumers, small and medium-sized organizations, enterprises, governmental
institutions, educational institutions, Internet service providers, application developers, and OEMs. Consumers
and small- and medium-sized organizations obtain our products primarily through resellers and OEMs. No sales
to an individual customer accounted for more than 10% of fiscal year 2008 or 2007 revenue. Sales to Dell and its
subsidiaries accounted for approximately 11% of fiscal year 2006 revenue. These sales were made primarily
through our OEM and volume licensing channels and cover a broad array of products including Windows PC
operating systems, Microsoft Office, and server products. Our practice is to ship our products promptly upon
receipt of purchase orders from customers; consequently, backlog is not significant.
EMPLOYEES
As of June 30, 2008, we employed approximately 91,000 people on a full-time basis, 55,000 in the United States
and 36,000 internationally. Of the total, 35,000 were in product research and development, 26,000 in sales and
marketing, 17,000 in product support and consulting services, 4,000 in manufacturing and distribution, and 9,000
in general and administration. Our success is highly dependent on our ability to attract and retain qualified
employees. None of our employees are subject to collective bargaining agreements.
AVAILABLE INFORMATION
Our Internet address is www.microsoft.com. There we make available, free of charge, our annual report on Form
10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports, as
soon as reasonably practicable after we electronically file such material with or furnish it to the Securities and
Exchange Commission (“SEC”). Our SEC reports can be accessed through the investor relations section of our
Web site. The information found on our Web site is not part of this or any other report we file with or furnish to the
SEC.