[thefreehunter]

I wouldn't say they're not succeeding there. They're not #1, but servers have never been one of their main focuses. I'm sure they would love to be #1, but Windows on the desktop and Microsoft Office makes them oodles of money already.

[xradionut]

Really? Have you ever looked at their quarterly earnings reports? They have a itty-bitty segment called "Server and Tools" that posted $4.25 billion in first quarter revenue.

[anamax]

Microsoft's total revenue in the quarter that just ended was $17.4B.

I don't have the server and tools breakout, but $4.5B is less than 26%.

$4.5B is a large number, it's even large enough to be significant to microsoft (however, it wouldn't be significant for walmart), but it's not essential.

[kooshball]

4.5B out of 17.4B is 25.8% of total revenue. What business are you in that 25% of revenue is not essential?

For others who haven't seen the numbers, here is their latest 8K http://idc.api.edgar-online.com/efx_dll/edgarpro.dll?FetchFi...

  Three Months Ended September 30, Revenue

  Windows & Windows Live Division             $  4,868
  Server and Tools                               4,250
  Online Services Division                         625
  Microsoft Business Division                    5,622
  Entertainment and Devices Division             1,963
  Unallocated and other                             44

  Consolidated                               $  17,372

[anamax]

> 4.5B out of 17.4B is 25.8% of total revenue

And 25.8% is "less than 26%", as I said.

> What business are you in that 25% of revenue is not essential?

Lots of biz have 30% variations in revenue. In fact, it wasn't so long ago that MS' revenue was 30% less that it is today. It was even less long ago that Google's revenue was 50% less than it is today.

If that revenue was essential, neither company would be alive today.

Yes, both are happier with that revenue, but it wouldn't kill them to lose it.