News

The Great Reckoning

The numbers are in. And they stink.

Think this year's been tough? Microsoft's numbers for its fiscal year ended June 30 demonstrate in detail what a brutal environment Microsoft partners have been operating in for the last 12 months. Here's how other areas of Microsoft's business changed compared to the 12 months ended June 30, 2008:

CategoryChangeRevenues
Client-13%$14.7 billion
Server+8%$14.1 billion
Business Division-<1%$18.9 billion
Total*-3%$58 billion
* Includes business units not listed

Other notes:
• Microsoft Dynamics Billings were off 7 percent for the year.

• Don't look for any extraneous -- or even previously core -- spending from Microsoft in the current fiscal year. Last year, and in 2008, operating expenses were $38 billion. For the year ending June 30, 2010, Microsoft is telling the financial community its operating expenses will fall between $26.6 billion and $26.9 billion.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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