Microsoft's money

I read article on Communications of the ACM February 2007, Volume 50 Number 2
"What road ahead for Microsoft the Company?" by Michael Cusumano (Professor at the MIT Sloan School of Management and author of the Business of Software, Free Press, 2004).

Microsoft revenue breakdown:
FY06 sales = $44.3 billion, Op.Income = $16.6billion (37%)
Corporate expenses = $5 billion (11%)
R&D expenditure = $6.6 billion (15%)

o Client (Windows): $13.2 billion revenue, $10.2 billion op income
o Office+:$11.8 billion revenue, $8.2 billion op income
o Server and Tools: $11.5 billion revenue, $4.3 billion op income
o Business Solutions: $919 million revenue, $24 million op income
o MSN: $2.3 billion revenue, -$77 million op income
- 30% access
- 10% suvbscriptions and transactions
- 60% advertising
o Mobile and Embedded: $377 million revenue, $2 million op income
o XBox, PC Games: $4.3 billion revenue, -$1.3 billion op income


How Microsoft makes money:
o Products (91%) + MSN (5%), Services (4%)
- Sales: Windows (30%), Office (27%), Servers (26%)
- Gross Profits: Windows (47%), Office (38%), Servers (20%)
- Gross Margins: Windows (77%), Office (70%), Servers (37%)
o OEM Software Revenues = 34% of sales
- 80% Windows, 20% Oiffce, 10% Servers, 100% mo/emb
o Enterprise Software Revenues
- 50% Office, 90% servers, 100% BizSolutions
- Multi-year software licenses = 24% of total sales (50% servers, 50% Office)
o Consumer Software Revenues = 27% of sales
- 40 % Office, 20% Windows, 100% Home/Entertainment