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Through a glass darkly: Microsoft's new financial reporting format

Juan Carlos Perez | Oct. 1, 2013
Analysts worry CIOs and enterprise IT leaders will struggle discerning the sales performance of specific products.

"The new financial reporting structure will provide our company with more transparency, great accountability and better execution, not only for today but also for the long term," Brod said during a webcast to discuss the changes.

The new format was also designed to better reflect Microsoft's reorganization. Announced in July by CEO Steve Ballmer, the restructuring's goal is to make Microsoft function in a more unified, cohesive manner. Ballmer said it will make it more agile in responding to market opportunities as it evolves from a packaged software focus into a provider of hardware devices and cloud services.

As part of the restructuring, Microsoft dissolved its five business units — the Business Division, which housed Office; Server & Tools, which included SQL Server and System Center; the Windows Division; Online Services, which included Bing; and Entertainment and Devices, whose main product was the Xbox console.

It replaced them with four engineering groups organized by function, around operating systems, applications, cloud computing and devices, and by centralized groups for marketing, business development, strategy and research, finance, human resources, legal and operations.

 

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