Microsoft - Little Known Revenue Streams Have Big Potential
by Sneha Shah
Microsoft (MSFT) stock has been rising despite a sharp slowdown in PC unit shipments. The company's new version of Windows operating system is facing problems with users finding it difficult to adjust to the new Metro interface. The stock is going up because the company is just not a Windows seller, but has large diverse revenue streams which most investors don't know of. Its server software, Office suite and Xbox products generate billions of dollars in revenue each quarter. They are also equally if not more profitable than the Windows OS segment. Microsoft is an enterprise software giant playing a critical role in enterprise IT. Products from other technology companies such as Google (GOOG) and Apple (AAPL) are highly visible as they are consumer technology companies. But Microsoft is more of an enterprise technology company. Microsoft has one of the biggest R&D budgets in the technology industry spending almost ~$10 billion annually. While a lot of the R&D spending is focused towards maintenance and development of existing products, a large percentage also goes into the development of new products. In the past few years, Microsoft has developed large new revenue streams from areas like cloud computing. read more »
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