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BARCELONA, CATALONIA, SPAIN - 2019/11/19: The Microsoft company logo during the Fair.First day of ... [+] the Smart City Expo World Congress which exists to empower cities and collectivise urban innovation. More than 400 international experts and 844 global companies joined the congress which will take place from 19 to 21 November 2019. (Photo by Paco Freire/SOPA Images/LightRocket via Getty Images)

Microsofts (NASDAQ: MSFT) Intelligent Cloud business is expected to contribute $41.9 billion to Microsofts 2020 revenues (ending June 2020) representing 31.2% of Microsofts $290.4 billion in expected revenues for the year. More Personal Computing, and Productivity & Business Processes segments are expected to contribute 35.1% and 33.7% respectively to Total Revenue making the relative contribution of all the 3 reporting segments to Microsofts top line nearly identical. Notably, Microsoft is expected to add $37.8 billion in revenue between 2017 to 2020, out of which the Intelligent Cloud segment is expected to provide $14.5 billion, or 38.3% of the total expected increase. In fact, it is the strong growth in Microsofts Intelligent Cloud segment revenues that has been primarily responsible for the 200% jump in the tech giants stock since 2017. While the segment has considerable growth potential, its higher profit margins have unlocked sizable value over recent years. We discuss Microsofts valuation analysis in full, separately.

Below we discuss Microsofts business model, followed by sections that review past performance and 2020 expectations for Microsofts revenue drivers and competitive comparisons of its revenue with Apple and Oracle. You can look at our interactive dashboard analysis ~ Microsofts Revenues: How Does Microsoft Make Money? ~ for more details.

Microsoft Business Model

What does Microsoft offer:

Has 3 major Operating Segments:

What Are The Alternatives?

Microsoft competes with:

What Is The Basis of Competition?

Details about how Microsoft revenue changes over recent years compare with competitors Apple and Oracle are available in our interactive dashboard.

Whats behind Trefis? See How Its Powering New Collaboration and What-Ifs ForCFOs and Finance Teams|Product, R&D, and Marketing Teams More Trefis Data Like our charts? Exploreexample interactive dashboardsand create your own

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How Important Is The Intelligent Cloud Segment To Microsofts Stock? - Forbes