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Exchange Joins Microsoft's Billion-Dollar Club

Microsoft Exchange Server crossed the $1 billion revenue threshold in fiscal 2004, joining Microsoft's enviable stable of products that the software company can rely on for more than a billion dollars in revenues each year.

Microsoft corporate vice president Dave Thompson mentioned the milestone on Wednesday during a series of briefings to update reporters on Microsoft's Exchange business.

Ahead of Exchange in Microsoft's billion-dollar club are the Windows client operating system, Microsoft Office, the Windows server operating system and SQL Server.

Exchange crossed into billion-dollar territory in Microsoft's fiscal 2004, which ran from July 1, 2003 to June 30, 2004. The fiscal year coincided almost perfectly with the launch and first 12 months of availability of Exchange Server 2003.

When Microsoft discussed 2004 financial results in July, chief financial officer John Connors attributed some of the company's gains to increased demand for Exchange Server without providing a specific revenue figure. At the time, Microsoft did say the Server and Tools business segment, which includes Windows Server, Exchange Server and SQL Server, made nearly $8.5 billion in revenues, and that all three of those products saw 20 percent revenue growth.

In all, Microsoft's revenues for fiscal 2004 reached $36.8 billion. The bulk of the revenue came from the Client business segment, which includes the Windows client operating systems, and the Information Worker business segment, which includes Microsoft Office. Client segment revenues were $11.5 billion, and Information Worker segment revenues were $10.8 billion.

About the Author

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