Microsoft company
Microsoft is a multinational technology company whose headquarter is in Redmond, Washington. Its primary role is to support, manufacture, and license and sells computer software and electronics. The company is well known for software products such as explorer, Microsoft office suite and windows. The hardware products include Xbox video game and Microsoft surface line up. The company was formed in the year 1975 by Bill Gates and his childhood friend Paul Allien. The company has made significant strides to rise to the top. It’s a leading company globally. In the beginning, in the year 1975, the company had total revenue of $16,000.
Currently, the company has advanced to critical areas referred to as cash cow. The business productivity focuses mainly on the Microsoft office. This product offers tools such as PowerPoint, Excel and Word. Other products under this category include communication tools such as teams and skype, OneNote and Power BI. The following primary source of revenue is services and server products. This product contains Microsoft SQL and Microsoft server. Their rate of growth is slow but earns a handsome income. The two types of revenue bring on the table more than half of total revenue. Windows brings about a quarter of revenue while the other revenue comes from gaming and search.
Currently, in the year 2020, Microsoft recorded a colossal growth of 14% and collected a revenue of $ 143bn. The revenue increased by $ 17.2bn, and the 40%increase came from revenue collected from Azure. Azure is a cloud platform with many products and cloud services. About the 14% growth, the expenses growth was under control. This enabled revenue growth. The net income recorded an increase of $ 5bn in comparison to the previous year. $ 38bn was paid out as dividends out of the $45bn cashflow.