Microsoft reorganizes reporting segments to highlight AI and cloud infrastructure
Microsoft will reorganize its corporate reporting into two primary segments: "Agents and Infra" and "Devices and Consumer." The "Agents and Infra" division will encompass Microsoft’s AI models, GitHub, Azure, and Microsoft 365, which currently features Copilot features.
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The "Devices and Consumer" division will cover Xbox, Windows, search, and advertising, including Bing and LinkedIn. CEO Satya Nadella stated that AI is changing the structural boundaries within the company. The "Agents and Infra" segment is projected to generate approximately $75 billion in revenue for the first quarter of next year, while the "Devices and Consumer" segment is projected to generate about $15 billion. Additionally, Microsoft will begin disclosing standalone Azure quarterly revenue. This new disclosure format shows that Azure is closer in size to Google Cloud than to Amazon Web Services. The gap between Azure and Amazon Web Services is nearly three times the size of Azure's lead over Google Cloud. Amazon Web Services reported $42.23 billion in revenue with 36.7% year-over-year growth, while Google Cloud reported $24.77 billion in revenue with 82% growth.
Sources
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Microsoft, Famous for Culty Jargon, Is Naming Half Its Organization ‘Agents and Infra’
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