Microsoft Corporation Presents at Morgan Stanley 2015 Technology, Media & Telecom Conference, Mar-02-2015 08:00 AM - NasdaqGS:MSFT

NasdaqGS:MSFT

**- Clarity and Strategy: Microsoft has a clear focus on being a productivity and platform company, emphasizing cloud-first, mobile-first strategies.

• Leadership Focus: The company is driving clarity, alignment, and intensity across business lines, ensuring all units are aligned with the new strategy.

• Performance Highlights:

  • Commercial cloud business growing at triple digits for 6 consecutive quarters, expected to exceed $5.5 billion in annualized revenue.
  • Office Home and Personal subscriptions reached 9.2 million subscribers, growing at a 30% quarterly rate.
  • Annuity business shows strong customer confidence in future innovations.
  • Search business growing at 23% year-over-year, expected to reach profitability in the next fiscal year.

• Future Strength: Building new capabilities in R&D, go-to-market, and sales to drive user adoption and consumption in cloud-based businesses.

• Cloud and Mobile: Emphasizing vertical integration to unlock end-user value through hardware, software, and services. Microsoft remains committed to its own mobile OS and devices while also making services available on other platforms like Android and iOS.

• Office 365 Growth:

  • Focusing on driving adoption and consumption in the cloud, integrating user and IT experiences.
  • Innovations like Sway and Delve enhance user productivity and document sharing.
  • Plans to increase lifetime value by accelerating innovation, expanding productivity to mobile devices, and adding compliance and security features.

• Skype for Business: Represents significant growth opportunities by removing meeting friction and enhancing communication intelligence. Synergy with consumer Skype is being leveraged to create a unified experience.

• Economic Model: Transitioning to a subscription-based model to enable smoother customer migrations and continuous innovation.

• Search Business: Investing in world-class experiences that integrate work and life, prioritizing work scenarios to differentiate Microsoft’s offerings. Windows 10 adoption is crucial for integrating smart search and driving economic growth.

• Partnerships and Coopetition: Working with partners like Dropbox to enhance customer experiences while competing in core areas. Acquisitions focus on acquiring great products and talent to accelerate growth.

• China Operations: Microsoft is the first multinational with a public cloud offering in China, working with 21Vianet. Early adoption and growth are strong, especially among China-based multinational companies. Moving to cloud services helps combat piracy and better monetize usage.**