Cost of Revenue: A Comparative Analysis

Microsoft vs. Western Digital: A Decade in Review

Over the past decade, Microsoft Corporation and Western Digital Corporation have showcased contrasting trajectories in their cost of revenue. From 2014 to 2024, Microsoft's cost of revenue surged by approximately 174%, reflecting its expansive growth and strategic investments. In contrast, Western Digital's cost of revenue remained relatively stable, with a slight decline of around 7% over the same period.

Key Insights

• Microsoft's Growth: Microsoft's cost of revenue increased from $27 billion in 2014 to an estimated $74 billion in 2024, highlighting its aggressive expansion in cloud computing and software services.
• Western Digital's Stability: Despite fluctuations, Western Digital's cost of revenue hovered around $10 billion, indicating a focus on maintaining operational efficiency amidst market challenges.

This analysis underscores the divergent paths of these tech giants, offering valuable insights into their strategic priorities and market positioning.