Microsoft’s Enterprise Software Business Is Way Bigger Than Windows And Extremely Healthy

steve ballmer microsoft

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Despite all the attention given to Microsoft’s consumer products like Xbox, Bing, and Windows Phone, the company’s real moneymaking engine are its varied lines of enterprise software.And those businesses are booming.

For the first time, the company’s Server and Tools business was bigger than Windows. In the fiscal year Microsoft just finished, it saw $18.7 billion in revenue for S&T compared to $18.4 billion for Windows. 

Server and Tools is the division that sells server versions of Windows, database software, Azure cloud services, software-development tools, system-management products and enterprise services.

Now, Windows was far more profitable, at $11.5 billion compared to S&T’s $7.4 billion.

But wait, there’s more. A lot more.

Microsoft’s Business Division, which sells Microsoft Office, is also bigger than Windows this year AND more profitable. It brought in $24 billion in revenue and posted $15.8 billion in operating income.

Those two business units cover more than half of Microsoft’s revenues and most of the company’s profit. Plus, most of Microsoft’s Windows revenues come from businesses, too.