Microsoft 2008 Annual Report Download - page 8

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PAGE 7
Note About Forward-Looking Statements
Certain statements in this report, other than purely historical information, including estimates, projections,
statements relating to our business plans, objectives and expected operating results, and the assumptions upon
which those statements are based, are “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements generally are identified by the words “believe,” “project,”
“expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,”
“will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on
current expectations and assumptions that are subject to risks and uncertainties which may cause actual results
to differ materially from the forward-looking statements. A detailed discussion of these and other risks and
uncertainties that could cause actual results and events to differ materially from such forward-looking statements
is included in the section entitled “Risk Factors” in our fiscal year 2008 Form 10-K. We undertake no obligation to
update or revise publicly any forward-looking statements, whether as a result of new information, future events or
otherwise.
BUSINESS DESCRIPTION
GENERAL
Our mission is to enable people and businesses throughout the world to realize their full potential. Since the
company was founded in 1975, we have worked to achieve this mission by creating technology that transforms
the way people work, play, and communicate. We develop and market software, services, hardware, and
solutions that we believe deliver new opportunities, greater convenience, and enhanced value to people’s lives.
We do business throughout the world and have offices in more than 100 countries.
We generate revenue by developing, manufacturing, licensing, and supporting a wide range of software
products and services for many different types of computing devices. Our software products and services include
operating systems for servers, personal computers, and intelligent devices; server applications for distributed
computing environments; information worker productivity applications; business solutions applications; high-
performance computing applications; software development tools; and video games. We provide consulting and
product support services, and we train and certify computer system integrators and developers. We also design
and sell hardware including the Xbox 360 video game console, the Zune digital music and entertainment device,
and peripherals. Online offerings and information are delivered through Live Search, Windows Live, Office Live,
our MSN portals and channels, and the Microsoft Online Services platform which includes offerings for
businesses such as Microsoft Dynamics CRM Online, Exchange Hosted Services, Exchange Online, and
SharePoint Online. We enable the delivery of online advertising across our broad range of digital media properties
and on Live Search through our proprietary adCenter® platform.
We also research and develop advanced technologies for future software products and services. We believe
that delivering breakthrough innovation and high-value solutions through our integrated software platform is the
key to meeting our customers’ needs and to our future growth. We believe that we will continue to lay the
foundation for long-term growth by delivering new products and services, creating new opportunities for partners,
improving customer satisfaction, and improving our internal processes. Our focus is to build on this foundation
through ongoing innovation in our integrated software platforms; by delivering compelling value propositions to
customers; by responding effectively to customer and partner needs; and by continuing to emphasize the
importance of product excellence, business efficacy, and accountability.
OPERATING SEGMENTS
We have five operating segments: Client, Server and Tools, Online Services Business, Microsoft Business
Division, and Entertainment and Devices Division. Our segments provide management with a comprehensive
financial view of our key businesses. The segments enable the alignment of strategies and objectives across the
development, sales, marketing, and services organizations, and they provide a framework for timely and rational
allocation of development, sales, marketing, and services resources within businesses. The segments also help
focus strategic planning efforts on key objectives and initiatives across our businesses.
Due to our integrated business structure, operating costs included in one segment may benefit other segments.
Therefore, these segments are not designed to measure operating income or loss that is directly related to the
products and services included in each segment. Inter-segment cost commissions are estimated by management and