Division

This is an interesting chart which shows where Microsoft’s profit comes from. And make no mistake, Microsoft is still the most profitable software company in the world.

Its profits are still being generated by the same engines that have driven Microsoft for years: Office, Windows, and its server division. (Meanwhile, its entertainment and devices division is only recently profitable again, and its online division is a money pit.)

This is why Google is increasingly focusing on disrupting Microsoft’s core businesses, including its Google Docs rival to Office; its Chrome OS rival to Windows; and now Google Buzz, an add-on to Gmail that some have compared most closely to Sharepoint, one of Microsoft’s enterprise tools.