Microsoft Corporation is a multinational technology company that provides a wide range of products and services to individuals and businesses worldwide. The company’s core business involves the development and sale of software, hardware, and cloud-based solutions.
In recent years, Microsoft has also become increasingly involved in app development, particularly for mobile devices and gaming platforms.
Microsoft’s Software Business: An Overview
Microsoft is undoubtedly one of the world’s largest software companies. The company’s flagship product, Windows, is used by millions of people around the world and has been a major driver of Microsoft’s growth over the years.
Other popular Microsoft software products include Office Suite, Microsoft Edge, and Internet Explorer, which was once the most widely used web browser in the world.
Microsoft’s Windows operating system has been particularly successful, dominating the desktop computing market for decades. The company has also made significant investments in cloud-based solutions, such as Azure, which allows users to host their applications and data on Microsoft’s servers. This has enabled Microsoft to tap into the growing demand for cloud-based services and compete with other major players in the industry, such as Amazon Web Services and Google Cloud Platform.
In addition to its core software products, Microsoft also provides a range of other services and solutions that are used by businesses and organizations around the world. These include enterprise applications, such as Dynamics 365, which is used for business operations management, as well as gaming and entertainment solutions, such as Xbox Live.
Microsoft’s App Development Business: An Overview
In recent years, Microsoft has become increasingly involved in app development, particularly for mobile devices and gaming platforms. The company has developed a range of popular mobile apps, including Office Lens, OneDrive, and Skype, which are used by millions of people around the world.
Microsoft has also made significant investments in gaming, developing its Xbox platform, which includes a range of games, services, and hardware. The company has also partnered with other major players in the gaming industry, such as Electronic Arts and Ubisoft, to develop exclusive games for the Xbox platform.
Comparing Microsoft’s Software and App Development Businesses
To determine whether Microsoft should be classified more as a software company or an app developer, we need to compare the two aspects of its business model. In terms of revenue, Microsoft’s software products have historically been much more significant than its app development business.
However, the growth of Microsoft’s app development business has been significant in recent years. According to a report by Sensor Tower, Microsoft’s mobile apps generated over $5 billion in revenue in 2020, up from around $1 billion in 2017.
In terms of user base, Microsoft’s software products have always been much more popular than its app development business. According to Statista, as of 2021, Windows is still used by around 75% of all personal computers worldwide, while Microsoft Office is used by around 68% of businesses.
When it comes to innovation and product development, both Microsoft’s software and app development businesses have been highly successful. Microsoft has consistently released new versions of its Windows operating system, as well as new features and updates for its Office Suite and other software products.