Sizing up the NW200

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NW200 fun comparisons
IBM employs a small city …

329,001 = IBM worldwide employees

313,619 = Population of Toledo, Ohio

Microsoft stockpiles a whole lot of cash …

$34.7 billion = Microsoft’s cash horde

$28.5 billion = The U.S. Department of Housing and Urban Development (HUD) 2006 operating budget

(Source: HUD)

Verizon owes more than Australia …

$31.8 billion = Verizon’s long-term debt

$30 billion = Approximate 2005 credit card debt for consumers in Australia

(Source: Reserve Bank of Australia)

The NW200 nets what

Americans spend online …

$82 billion = NW200 2005 profits

$82.3 billion = U.S. online retail sales for 2005

(Source: comScore Networks)

Canada is only slightly more

productive than the NW200 …

$919 billion = NW200 2006 revenues

$979.8 billion = Gross Domestic Product of Canada, 2004

(Source: Most current World Bank stats, released July 2005)

While Oracle has yet to integrate and account for all the new assets, the company's revenue was up 22% on a TTM basis to $12.8 billion.

Profits were actually down 2% (presumably because of some of the acquisitions) to $2.8 billion, but even with that dip Oracle still mustered a profit margin of 22%. While impressive, that doesn't hold a candle to Microsoft's 32% margin.

For the fourth year in a row, Microsoft generated more profits (on a TTM basis) than any other company on the NW200, including companies twice its size. In fact, Microsoft's $13 billion in net income is close to the combined profits of IBM, HP and Dell.

Microsoft isn't known for acquisitions, but it does make a handful a year and one of the more meaningful ones last year was of Groove Networks. Besides getting its hands on Groove's peer-to-peer collaboration technology, which it is building into various office tools, Microsoft captured Ray Ozzie, one of the creators of Lotus Notes. Ozzie became CTO reporting to Bill Gates.

While 2006 is still young, consolidation across the industry continues. Oracle, for example, has scooped up Siebel Systems (No. 54 in '04) and Alcatel plans to merge with Lucent (No. 23). By this time next year we might be down to the Network World 100.

Next story: Avaya bets on Web services >

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Copyright © 2006 IDG Communications, Inc.

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