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Can Microsoft's core business adapt to the new economy?
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In late April, two weeks before Microsoft announced the biggest batch of layoffs in its history, the company experienced a lesser-noticed milestone that may have signaled even more about the state of its business. For the first time in Microsoft’s history, revenue in its Server & Tools division — which makes behind-the-scenes corporate systems and programming software — surpassed revenue in its Windows Client division, which makes the PC operating system responsible for much of the company’s past success.
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