Microsoft announced a new financial reporting structure on Wednesday, collapsing its three operating segments into two as artificial intelligence reshapes how the company organizes its business. The change takes effect in fiscal year 2027.
The two new segments are Agents and Infra, and Devices and Consumer. Those three categories — Productivity and Business Processes, Intelligent Cloud, and More Personal Computing — dated to 2015, according to CNBC.
Agents and Infra will include Azure cloud infrastructure, Microsoft 365, GitHub, productivity and server licensing, industry solutions, and frontier and support services. Devices and Consumer will cover search and advertising, Xbox, Windows operating system licenses, and device sales. The restructuring brings Microsoft's advertising businesses together under one segment, the company said.
"There's no question AI represents a profound shift in both technology and business," Chairman and Chief Executive Officer Satya Nadella wrote in the presentation. "It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models."
As part of the changes, Microsoft will begin reporting quarterly Azure revenue figures — a disclosure it has not previously made. Under the new, narrower definition of Azure, which excludes GitHub cloud services, developer cloud services, the Security Copilot **** istant, and healthcare and life sciences cloud products, Azure revenue grew 42% to $29.42 billion in the June quarter. That compares with 43% growth under the old Azure and other cloud services metric. Azure represented roughly 33% of Microsoft's total revenue in that period.
#Services #agents
The two new segments are Agents and Infra, and Devices and Consumer. Those three categories — Productivity and Business Processes, Intelligent Cloud, and More Personal Computing — dated to 2015, according to CNBC.
Agents and Infra will include Azure cloud infrastructure, Microsoft 365, GitHub, productivity and server licensing, industry solutions, and frontier and support services. Devices and Consumer will cover search and advertising, Xbox, Windows operating system licenses, and device sales. The restructuring brings Microsoft's advertising businesses together under one segment, the company said.
"There's no question AI represents a profound shift in both technology and business," Chairman and Chief Executive Officer Satya Nadella wrote in the presentation. "It is changing what we build and how we operate, and it is blurring the boundaries between our products and reshaping our business models."
As part of the changes, Microsoft will begin reporting quarterly Azure revenue figures — a disclosure it has not previously made. Under the new, narrower definition of Azure, which excludes GitHub cloud services, developer cloud services, the Security Copilot **** istant, and healthcare and life sciences cloud products, Azure revenue grew 42% to $29.42 billion in the June quarter. That compares with 43% growth under the old Azure and other cloud services metric. Azure represented roughly 33% of Microsoft's total revenue in that period.
#Services #agents
3 days ago
