Microsoft 2013 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2013 Microsoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 87

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87

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. Forward-
looking statements may appear throughout this report, including without limitation, the following sections: “Business,”
“Management’s Discussion and Analysis,” and “Risk Factors.” 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 risks and uncertainties that could
cause actual results and events to differ materially from such forward-looking statements is included in the section titled
“Risk Factors” in our fiscal year 2013 Form 10-K. We undertake no obligation to update or revise publicly any forward-
looking statements, whether because of new information, future events, or otherwise.
BUSINESS DESCRIPTION
GENERAL
Microsoft was founded in 1975. Our mission is to enable people and businesses throughout the world to realize their full
potential by creating technology that transforms the way people work, play, and communicate. We develop and market
software, services, and hardware devices that deliver new opportunities, greater convenience, and enhanced value to
people’s lives. We do business worldwide and have offices in more than 100 countries.
We generate revenue by developing, licensing, and supporting a wide range of software products and services, by
designing and selling hardware devices, and by delivering relevant online advertising to a global customer audience. In
addition to selling individual products and services, we offer suites of products and services.
Our products include operating systems for computing devices, servers, phones, and other intelligent devices; server
applications for distributed computing environments; productivity applications; business solution applications; desktop and
server management tools; software development tools; video games; and online advertising. We also design and sell
hardware devices including Surface RT and Surface Pro, the Xbox 360 gaming and entertainment console, Kinect for
Xbox 360, Xbox 360 accessories, and Microsoft PC accessories.
We offer cloud-based solutions that provide customers with software, services, and content over the Internet by way of
shared computing resources located in centralized data centers. Examples of cloud-based computing services we offer
include Microsoft Office 365, Microsoft Dynamics CRM Online, Windows Azure, Bing, Skype, Xbox LIVE, and Yammer.
Cloud revenue is earned primarily from usage fees, advertising, and subscriptions. We also provide consulting and
product and solution support services, and we train and certify computer system integrators and developers.
We conduct research and develop advanced technologies for future software, hardware, and services. We believe that we
will continue to grow and meet our customers’ needs by delivering a family of devices and services for individuals and
businesses that empower people around the globe at home, at work, and on the go, for the activities they value most. We
will continue to create new opportunities for partners, increase customer satisfaction, and improve our service excellence,
business efficacy, and internal processes.
OPERATING SEGMENTS
During the periods presented, we operated our business in five segments: Windows Division, Server and Tools, Online
Services Division, Microsoft Business Division, and Entertainment and Devices Division. Our segments