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Microsoft Says Windows 10 is No Longer a “Cornerstone” Product as Focus on Cloud Continues

In its 2019 Form 10-K report, Microsoft shows Windows 10 growth is slowing and the service is no longer a cornerstone driver of company-wide growth.


has used its 2019 Form 10-K report to highlight its transition away from Windows as its business focus. The company has previously referenced as “the cornerstone” of its mission to create a more personal computing experience.

The previous wording in the 10-K report said:

“Windows 10 is the cornerstone of our ambition, providing a foundation for the secure, modern workplace, and designed to foster innovation through rich and consistent experiences across the range of existing devices and entirely new device categories.”

In the 2019 report, which was published last week in a U.S. Securities and Exchange Commission filing, now places Windows within a wider strategy:

“We strive to make computing more personal by putting users at the core of the experience, enabling them to interact with technology in more intuitive, engaging, and dynamic ways. In support of this, we are bringing Office, Windows, and devices together for an enhanced and more cohesive customer experience.

Windows 10 continues to gain traction in the enterprise as the most secure and productive operating system. It empowers people with AI-first interfaces ranging from voice-activated commands through Cortana, inking, immersive 3D content storytelling, and mixed reality experiences. Windows also plays a critical role in fueling our cloud business and strategy, and it powers the growing range of devices on the “intelligent edge.” Our ambition for Windows 10 monetization opportunities includes gaming, services, subscriptions, and search advertising.”

Image: GeekWire

Slowing Growth

Of course, Windows 10 remains a massive revenue source for Microsoft and is used on hundreds of millions of machines globally. However, as we have seen in recent years, cloud driver by Azure is now Microsoft core growth area.

For those of us who have been following Microsoft long enough, the company was always “the Windows company” such was the influence the operating system had on Microsoft's rise to the top of the software market. Windows was the fuel behind the rise of the PC but is now just one part of a wider Microsoft picture.

Speaking of that picture, Microsoft breaks down revenue across product lines more accurately in its 10-K report than its quarterly earnings posts. Specifically, the company offers a more accurate revenue update for single products and not broad company divisions.

Through this breakdown we can see Windows is now growing more slowly that other major businesses, among them Office and Azure. Still, Windows still gained a 4 percent growth during fiscal 2019, adding to $20.4 billion in revenue for the year. So, growth is still there by in previous years Windows was recording double-digit growth.

Luke Jones
Luke Jones
Luke has been writing about all things tech for more than five years. He is following Microsoft closely to bring you the latest news about Windows, Office, Azure, Skype, HoloLens and all the rest of their products.

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