Microsoft 2010 Annual Report Download - page 15

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Select licensing
Designed primarily for medium-to-large organizations (greater than 250 licenses), this program allows
customers to acquire perpetual licenses and, at the customer’s election, software assurance over a specified
time period (generally three years or less). Similar to the Open program, the Select program allows customers
to acquire licenses only, acquire licenses with software assurance, or renew software assurance upon the
expiration of existing volume licensing agreements.
Enterprise agreement licensing
Enterprise agreements are targeted at medium and large organizations (greater than 250 licenses) that want to
acquire licenses to software products, along with software assurance, for all or substantial parts of their
enterprise. Enterprises can elect to either acquire perpetual licenses or, under the Enterprise Subscription
program, can acquire non-perpetual, subscription agreements for a specified time period (generally three
years). Online services are also available for purchase through the Enterprise agreement and subscriptions are
generally structured with three year terms.
Online
Although client-based software will continue to be an important part of our business, increasingly we are delivering
greater value to customers through cloud-based services. We have an expanding portfolio of products, services, and
solutions that we market and distribute online. We provide online content and services to consumers through Bing,
Windows Live Essentials suite, Microsoft Office Web Apps, our MSN portals and channels, and Xbox LIVE. We
provide content and services to business users through the Microsoft Online Services platform, which includes cloud-
based services such as Windows Azure, SQL Azure, Microsoft Dynamics CRM Online, SharePoint Online, Exchange
Online, and Office Communications. Other services delivered online include our online advertising platform with
offerings for both publishers and advertisers, as well as Microsoft Developer Networks subscription content and
updates, periodic product updates, and online technical and practice readiness resources to support our partners in
developing and selling our products and solutions.
CUSTOMERS
Our customers include individual consumers, small-sized and medium-sized organizations, enterprises,
governmental institutions, educational institutions, Internet service providers, application developers, and OEMs.
Consumers and small-sized and medium-sized organizations obtain our products primarily through distributors,
resellers and OEMs. No sales to an individual customer accounted for more than 10% of fiscal year 2010, 2009, or
2008 revenue. Our practice is to ship our products promptly upon receipt of purchase orders from customers;
consequently, backlog is not significant.
EMPLOYEES
As of June 30, 2010, we employed approximately 89,000 people on a full-time basis, 54,000 in the United States and
35,000 internationally. Of the total, 35,000 were in product research and development, 25,000 in sales and
marketing, 15,000 in product support and consulting services, 5,000 in manufacturing and distribution, and 9,000 in
general and administration. Our success is highly dependent on our ability to attract and retain qualified employees.
None of our employees are subject to collective bargaining agreements.
AVAILABLE INFORMATION
Our Company Internet address is www.microsoft.com. At our Investor Relations Web site,
www.microsoft.com/investor, we make available free of charge a variety of information for investors. Our goal is to
maintain the Investor Relations Web site as a portal through which investors can easily find or navigate to pertinent
information about us, including:
• our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any
amendments to those reports, as soon as reasonably practicable after we electronically file that material
with or furnish it to the Securities and Exchange Commission (“SEC”);
• information on our business strategies, financial results, and key performance indicators;
• announcements of investor conferences, speeches, and events at which our executives talk about our
product, service, and competitive strategies. Archives of these events are also available;