Microsoft has changed its financial reporting structure, reducing the number of segments to three units from six.
The move aims to reflect the company’s performance in mobile and cloud businesses.
Microsoft is due to report first quarter results on 22 October. The three segments that the company will now segregate its results include productivity and business processes, intelligent cloud, and more personal computing.
The productivity and business processes will feature Office and Office 365 as well as its Dynamics and Dynamics CRM online.
The intelligent cloud segment will include results from public, private and hybrid server products and services such as Windows Server, SQL Server, System Center, Azure, and Enterprise Services.
The more personal computing segment will include results from licensing of the Windows operating system, devices such as Surface and phones, Xbox gaming consoles, and search.
Microsoft will, however, provide revenue and gross margin for the older operating segments for the first quarter results in order to support investors with the transition.
Earlier this year, Microsoft CEO Satya Nadella has set his cloud revenue target of $20bn, three times more than its current cloud revenue.
It was reported in August that Microsoft’s offshore profits have increased 17% to $108bn, due to its continual profits in low-tax foreign jurisdictions.
