Microsoft is reshaping how it reports its business segments to highlight its AI-driven evolution. Starting next fiscal quarter, the company is replacing its three traditional segments—Productivity and Business Processes, Intelligent Cloud, and More Personal Computing—with two new ones: Devices and Consumer, and Agents and Infra. “Devices and Consumer” covers revenue from Xbox, Windows, LinkedIn, and search advertising, while “Agents and Infra” consolidates income from AI models, cloud infrastructure, and Microsoft 365, including Copilot features. This shift will also bring transparency by breaking out Azure’s quarterly revenue for the first time. CEO Satya Nadella explains the change as a reflection of AI’s transformative impact on technology and business operations, emphasizing a connected approach to customer needs beyond individual apps or services. Historically, Microsoft has embraced quirky terminology, such as pioneering the phrase “dogfooding” in the 1980s and managing modern user-coined terms like “Microslop.” This latest naming move continues its tradition of creative corporate language in the AI age.
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