Service provided by Microsoft in seven segments:

Client, Server and Tools, Information Worker, Microsoft Business Solutions, MSN, Mobile and Embedded Devices, and Home and Entertainment.

Major competitor for Microsoft in each segment:

The Client segment has overall responsibility for the technical architecture, engineering and product delivery of the Company's Windows product family, and is also responsible for its relationships with PC manufacturers, including multinational and regional original equipment manufacturers (OEMs).

In this segment the competitors are Apple Computer, Hewlett-Packard, Real Networks, Mozilla, IBM and Sun Microsystems.

The Server and Tools segment develops and markets Windows Server products, including Windows Server operating systems. Windows Server products are integrated server infrastructure software that is designed to support end-to-end software applications and tools built on the Windows Server 2003 operating system.

In this segment the competitors are Hewlett-Packard, IBM, Sun Microsystems, Novell, Red Hat, CA, BMC, Oracle, McAfee, Symantec, Adobe, BEA Systems, Borland and Trend Micro.

The Information Worker segment consists of the Microsoft Office system of programs, services and software solutions. The Office system offerings generate over 85% of Information Worker segment's revenue. Approximately 40% of Information Worker segment's revenue comes from multi-year license agreements with large enterprises.

In this segment the competitors are Apple, Corel, Google, IBM, Novell, Oracle, Red Hat, Sun Microsystems, WebEx, Business Objects, Cognos and Hyperion.

The Microsoft Business Solutions segment is responsible for Microsoft Dynamics brand business applications for small and mid-size businesses, large organizations and divisions of global enterprises. It offers financial management, customer relationship management, supply chain management and analytics applications.

In this segment the competitors are Intuit, Sage, Oracle and SAP.

The MSN segment provides personal communications services, such as e-mail and instant messaging, and online information offerings, such as MSN Search, MapPoint, and the MSN portals and channels around the world. MSN also provides a variety of online paid offerings. MSN manages many of its own properties, including health, autos and shopping. MSN also creates alliances with third parties for many channels, including CareerBuilder.com, Expedia.com, Foxsports.com, Match.com and MSNBC.com.

In this segment the competitors are AOL, Google, Yahoo! and Earthlink.

The Mobile and Embedded Devices segment develops and markets products that extend the Windows platform to mobile devices, such as personal digital assistants (PDAs) and phones, and to embedded devices. The segment is also responsible for managing its Company-wide sales and customer relations with device manufacturers and other communication-sector customers, which includes network service providers and media and entertainment companies.

In this segment the competitors are Nokia, Openwave Systems, Palm, QUALCOMM, Research In Motion, Symbian, IBM, Metrowerks, MontaVista Software, Wind River and QNX Software Systems.

The Home and Entertainment segment is responsible for development, production, and marketing for the Xbox video game system, including consoles and accessories, third-party games, games published under the Microsoft brand, and Xbox Live operations, research, sales and support. In addition to Xbox, the Company offers several types of entertainment products, including PC software games, online games, and other devices. The segment also leads the development efforts of its Consumer Productivity Experience Group (CPxG), which includes Microsoft's line of consumer software and hardware products, such as the Encarta line of learning products and services, application software for Macintosh computers, and Microsoft PC hardware products, such as mice and keyboards.
In this segment the competitors are Nintendo and Sony.