SharePoint is 'Facebook for the enterprise'

Make no mistake. Microsoft's big development push this week is around Windows, but Office and supporting software, such as SharePoint, are more important at the bottom line. During today's Microsoft Financial Analyst Meeting, COO Kevin Turner said that the Business division "is 32 percent of the company". Windows is 27 percent and Server and Tools is 24 percent.

Microsoft typically holds FAM during July, within weeks of closing its fiscal year on June 30. But this year Ballmer and his team delayed the annual event until this week's BUILD developer conference. That's smart, because Wall Street analysts have a chance to see some new Microsoft's products, Windows 8 in particular.

During the Day 2 keynote, Ballmer made clear that Microsoft is in a process of reinvention around Windows. So the venue clearly is deliberate for financial analysts. But the pitch is interesting, considering Business division's role against Windows & Windows Live.

Turner highlighted some milestones that marks the Business division success:

* Office 2010 is the most successful version of the software.

* SharePoint is the most successful Microsoft product ever -- "fastest to $1 billion" revenue, Turner said. He called it "Facebook for the enterprise". In the cloud, Microsoft has sold 5 million Office 365 seats, with more than half of them deployed.

* Not surprisingly, businesses are Microsoft's most successful combined segment by revenue: Enterprise 37 percent; OEM 24 percent; 21 percent small and medium business.

Turner said that in his six years at Microsoft, he has never spoken about "operating momentum" before, particularly as the company cuts costs and maximizes profits. Microsoft's revenue per head grew from $630,000 in fiscal 2009 to $744,000 in FY 2011.

Microsoft operates in 191 countries around the world, supported by 690,000 channel partners.

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