The move will fold its two weakest, youngest divisions into better-performing groups, and will shift over $1bn in revenue into one of them.
Starting July 1, the beginning of Microsoft’s fiscal 2007, the company will report in five segments: Client, Server and Tools, Online Services Group, Microsoft Business Division, and Microsoft Entertainment and Devices Division.
The Business Division sees the Office-heavy cash cow Information Worker unit, which reported $3.11bn revenue in the third fiscal quarter, merged with the Microsoft Business Solutions segment, somewhat lighter at $214m.
Revenue from Exchange client access licenses – the non-software per-seat revenue associated with Exchange sales – will be moved to this new segment too. This will lead to about $1.3bn of revenue from the first three quarters of fiscal 2006 shifted over to MBD.
The Entertainment and Devices Division sees the mobile segment, which reported $81m revenue last quarter, merged with the Xbox-heavy entertainment division, which reported $1bn revenue in the third quarter.
The other segments will report as before, except Server & Tools, which loses the Exchange client access license revenue.
