For the First Time, Microsoft Got More Revenue From Office 365 Subscriptions Than From Traditional Office Software Licensing (axios.com)
Ina Fried, reporting for Axios: Shares of Microsoft hit record territory in after-hours trading on Thursday, topping $75 a share, after the software giant's better-than-expected financial results. As has been the case for the last several quarters, strength in Microsoft's cloud business, including Office 365 and Windows Azure, was the key to the company's growth. Of note, Microsoft CFO Amy Hood told analysts that, for the first time, Microsoft got more revenue from Office 365 subscriptions than from traditional Office software licensing. Why it matters: Microsoft has shown an ability to grow its business even as the PC market has stalled, reflecting moves the company made in the cloud both since Satya Nadella took over as CEO as well as some that were in place before he took over the top spot.
Because they practically force MS-Cloud down your throat. They know you need MS-Office to be compatible with all your existing MS documents, yet you can't go to another vendor if you want reasonable desktop pricing.
Table-ized A.I.
98% of the people who use office simply type letters and notes, maybe make a simple spreadsheet or two. Openoffice is entirely up to the task.
I really have to give Microsoft credit, figuring out a way to make people pay rent on something as simple as a word processor.
Weaselmancer
rediculous.
I ended up converting last year and it is actually a better deal all around. If you work in the business world you inevitably have to deal with MS Word documents and MS Excel spreadsheets and MS Powerpoint sludge.
What I like is that I can install multiple legal copies on different devices including family members.
Although it is an annual rent which is going to turn off a lot of people I now consider it a regular business related sense such as dry cleaning or a commute-capable car or for that matter taxes on income. If you want to be a grown up there are things you have to pay for.
I'm beginning to think that Microsoft is posting 'facts' like the people and governments in the subject line post 'facts'.
your a doo$h
are born every second.
We switched to Office365 this month from 2010, and our end users are sick of it. They complain about re-authentication, along with bugs and other issues. Many people are switching back to our Google webmail instead.
For us, the price point is higher than where we want to be, given all the SaaS crap we are stuck with. I expect a defection inside a year.
Microsoft is irrelevant and dying.. oh wait..
If we want good, open, free alternatives, it helps a lot to donate to the projects.
I donate to Debian, KDE, LibreOffice, GnuPG, and more.
Even for OSS projects, being able to fund developers makes a big difference. Put your money where your mouth is. Stop giving money to Microsoft, start giving money to OSS. At least the latter will respect your rights (*) and not treat you as the enemy.
(*) insert systemd joke here.
It can do everything Office 365 can do, and more. It's also free.
If you really must have Office, just pirate it.
My company and previous company switched to Office 365 only because it's easier to administer via the web interface than it is through the traditional profile/domain configurations. MS has touted that as cheaper to the company than boxed software which is true in the short term (the only thing that matters to beancounters anymore) but is a win for MS in the long term as companies continue to pay annual subscription fees (as opposed to holding off migrating to the next version of office) See Adobe moving all their software to annual subscriptions as well. Software "ownership" is rapidly becoming a thing of the past.
you actually never owned the s/w - it's always been a rental - just look at the agreements in any EULA...all we've done is go to a monthly recurring model
nothing to see here - move along
Before paying good money for a one year Microsoft subscription, take 15 minutes and try AbiWord. It is a GREAT word processor.
https://www.abisource.com/
It's free in every way, but if you feel a need to pay, give where your money supports a good cause. Don't be a chump!
The fact that MS got more revenue from Office 365 subscriptions, I think, is a sign that traditional licensing may come to an end for Office. It is an easy way to make more money, and people are going for it. MS might confident enough to pull the plug in the next few years.
"Microsoft Office Has Collapsed So That Even Office 365 Subscriptions Produce More Revenue Than Traditional Office Software Licensing"
Meanwhile, regular users happy with Google Docs and LibreOffice.
Microsoft, no shit you made more money this way.
You didn't give customers an actual choice, you fackin' wankers.
Face it, you don't need to own things.
You don't own your cellphone, you lease it for a small monthly fee.
Even if you "purchase it", you are only granted a limited license to use it, for limited usage, such as the owner of the software sees fit.
In the near future, you will not "own" your storage, you will simply use the cloud.
You will not "own" your formerly "personal" computer, you will lease a "computing appliance" for a small monthly fee.
Leasing means stricter control. Picture no viruses, malware, spamware, etc, because everything is tightly controlled.
Only because they trick people into thinking Office 365 is real Office.
LibreOffice is way better. Everybody sane uses it.
Here is how you make revenue for Office365 go up - change your pricing.
I would venture that most of this comes from companies. They simply bundle the two together, of course requiring that you buy both. Maybe your costs are the same, or maybe they go up a little, but the ratio is probably heavily weighted towards office365. Microsoft can then say the revenue for 365 goes up, traditional license revenue goes down. But you still have to have both. Maybe they can push just 365 on new clients, but i think that would be a hard sell.
Then once their subscription numbers are up, they can just let the client-version wither and die.
At work we have Office365, but everyone I know uses the traditional installed version. It is buggier than it used to be, because it has to phone-home to mothership365. Store docs to OneDrive, view them in the cloud (which I never really do), or log in and use the 365 calendar/outlook, which I try to avoid at all costs. Many many times Office applications will hang now that they are 'integrated' with 365.
Nobody will care about 365 until they take away the client version, then productivity will tank. By that time though, the frog will be boiled.
My beliefs do not require that you agree with them.
Seems like Outlook is just a really crappy version of Thunderbird with a Gmail account and IMAP over SSL. I particularly like Gmail's anti-SPAM, the infinite email addresses via '+', and the way I can autofilter incoming emails to different folders.
OpenOffice & LibreOffice are just amazing!
It must be nice to have money you can throw away on Microsoft...
The move to Office 365 was entirely predictable as Office 365 is simply the next version of Office.
Any medium to large size enterprise that was using Office was already "renting" their software from Microsoft in the form of Software Assurance. Many businesses have become accustomed to annual license/support fees - from networking, to backup to productivity software - almost all of it in production in a decent size enterprise requires annual licensing and support.
Most enterprises that I've seen deploy Office 365 are deploying local copies of Office 2016 and taking great pains to prevent storage of their data in Microsoft's cloud.
This isn't some new paradigm shift to cloud/rental software - it's already been here for many years.
It fucking rocks.
It handles MS documents and PDFs with aplomb. Way better than LibreOffice.
It is CHEAP in comparison to MS Office, O365 or traditional install, like half the price or less.
It's fully backward/forward compatible for at least the last six versions, probably more. Meaning it's no problem to use WP5.1 documents within X8 and it is no problem to use X8 documents within X3.
Reveal codes!!! How does MS Office still not have this?
Guess what the first thing that will be canceled when the economy goes sour. Car payment or Office 365 payment?
In related news, the number of stupid people making decisions for their businesses is increasing. If my company had paid their rate for 365 since we bought office 2003, it'd be over $1000. We paid like $180 per seat.
It's amazing how people will pour more money into speculation of profits through a method that screws the entire public (including themselves) because it will make them a little more money short term. (It's not like stock holders get a free subscriptions to Office 365).
There is of course LibreOffice (http://www.libreoffice.org) as well as OpenOffice (http://www.openoffice.org) and for those that want an internal intranet based solutions (or "cloud" on the open Internet) there is OnlyOffice (http://www.onlyoffice.org). I've used LibreOffice/openOffice for 5 years now and I have no complaints except for complex tables in the Spreadsheet application. Some have said that in other languages the grammar/spell check is incomplete but the public can always fix that if they are so inclined.
The best part: no spyware (MS is collecting the data from the installed clients as well as the Internet folks) and no lock in. Even no fees (but donations for the work would be nice folks). It's about time we started thinking outside the marketing box. There have been no serious function additions in years so this is just paying MS money we don't have to because we get too lazy to look for an option.(MS May try to block Libre/Office installs if it gains tractions however unethical (or even illegal it may be), but there is Linux or MacOs in that case)
"Imagination is more important than knowledge" - Einstein
If you want to be a grown up there are things you have to pay for.
What the hell does that mean?
If you want to be wealthy, play a good offence and a good defence. Maximize your earnings while eliminating as many recurring costs as possible. For instance:
-Cable Bills. Don't pay between $100 and $200 per month for TV. Put up an antenna. If you can't live without it, use a service such as NetFlix, Prime, or Hulu.
-Phone Bills. This includes cellular phone bills. Use Google Hangouts and web based services when possible. Use an Ooma for VOIP.
-Insurance. Shop around every year, but make sure that the agency is highly rated.
-Rent. Buy a house that you can afford and pay it off quick. Buying a home for 1/2 the price that the Realtor suggested and paying extra resulted in a 10 year mortgage. This has saved me over $700 per month for over a decade.
-Leasing. Buy a used car and pay it off quick.
-Debt. Don't run a balance on credit cards. If it can't be paid off in the next month, you can't afford it.
-Software. Use Free and Open Source software along with Web based apps for business. Nobody that I know can tell that I am using Linux when examining my work.
If you are typical business owner, remember that IT is an expense. Generally it does not add value to most products or services. You can save massive amounts of money and time by minimizing exposure to malware, scams, as well as many other trivial maintenance issues by not using Windows. The dirty little secret of IT technicians is that Windows always seems to need hand-holding to continue running.
LibreOffice is the stand-alone office suite of the nineties, sans a broadly useful integrated messaging and calendar applications like Outlook .and Skype.,
Office 365 is an integrated office system with online and offline components and customized versions for federally compliant medical record applications and so on.
We switched from in-house MS-Exchange and (crappy) SharePoint to Google's G-Suite for enterprise, so now have unlimited storage on Drive + plus MDM and video chat built-in.
The efficiency gains with Google docs (sheets, slides and docs) when co-authoring drafts or working on budgets is amazing.
We activated 2FA and some SAML integration with Salesforce. Since we sync/provision accounts within our internal AD, this works well when onboarding/revoking accounts for internal as well as third party Cloud solutions.
Bottom line, moving away from Microsoft was the best option for our company (with ~4000 staff in US, EU and Japan) all at a fraction of the cost for licenses for internally hosted Exchange (which lacks many of the other collaboration features we now get).
is what makes Office so successful. It states that 80% of your users only use 20% of your application's functionality, but for each user it's a _slightly_ different 20%.
Basically, everybody has that one cool feature they can't live without that their entire workflow is dependent on (spacebar heating anyone?). That's how Microsoft gets lock in. You can't leave without taking a major hit.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
you get application hosting. You get apps that work as long as your web browser does, and if your web browser breaks you can wipe the computer and start over and not lose a damn thing. Yes, you're giving up privacy and control, but most people don't need that or care. They care about losing everything when they crash their PC for the 10th time. They care about spending $1k on a PC instead of $200 because then need a fractional amount more reliability.
You and I are computer enthusiasts to some degree. Most people view them as a means to an end and a rather annoyingly complex tool.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
because you break your computer a few times a year and it's expensive to fix it. Office 365 doesn't break unless your browser does. It works in 3 different browsers so if one breaks you can switch to another. And if all else fails you can switch computers and get to your files.
It's kinda like being a mechanic and driving a Jaguar. You can get away with it when you can fix it on your own.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
When PCs and Very Small Minis (System 23s, Radio Shack Model 16s) first became common (a few years before IBM came out with The PC), a primary focus was bringing the computing in-house, where it would be under the control of the (usually small) business or individual. Networking PCs wasn't a Thing yet, though there were some networks around (I seem to recall Corvus or somebody like that networking Apple IIs to a huge (5 MB?) hard disk in an educational lab environment?). The small and Very Small mini's could sometimes handle a few VT100 (or the like) terminals for office automation. Otherwise, at the time, if you weren't big enough to have your own mainframe or large mini, you bought timesharing by the connection minute, CPU second, I/Os, and storage space. Even with the capital investment of buying the PC and related system stuff, and hiring or contracting for somebody to take care of it, you often came out ahead, or at least felt like you were.
Jump ahead 40 years. People are voluntarily downgrading their (now all networked) PCs to "thin clients" connected to datacenters and "the cloud" (other people's computers; functionally equivalent to timesharing). Why? Has the cycle gone completely around, to where nobody wants to have control over their processing and data any more, and is willing to pay for it in various increments of processor time and storage? What ever happened to the PC as a concept, not as just a small business machine marketed by IBM?
Seems like Outlook is just a really crappy version of Thunderbird with a Gmail account and IMAP over SSL. I particularly like Gmail's anti-SPAM, the infinite email addresses via '+', and the way I can autofilter incoming emails to different folders.
OpenOffice & LibreOffice are just amazing!
It must be nice to have money you can throw away on Microsoft...
Some years ago, I became weary of Microsoft Office's inability to achieve cross platform compatibility between Macintosh and Windows, as well as MSO not being able to open older versions. So I decided to tryo OO. Documents on the PC opened properly on the Mac, and also Linux. So by that time the Ribbon had come out, and now the whole freaking interface was different between the Macs and PC's, and OO and AO would open word documents that MSO wouldn't any more.
The choice was obvious. Except for people that are not quite so concerned about actually doing work.
The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
On PCs with Office installed, VBA is often the only programming language available.
Better than nothing for kids to play around with, like how they played around with QBASIC a generation ago.
Yes, you can create macros in LibreOffice too, but it's not as easy and performance is dog slow.
That that is is that that that that is not is not.
... I got Office 2007 Pro. from an estate sale almost a couple months ago. Before it and in the past, I was still using the very old 2K SR3 and 2003 from others who didn't use them anymore. They worked fine for my basic needs (Word and Excel) with their 2007 converter packs and updates. I also use the updated LibreOffice when needed too which is rare.
I hate the online cloud stuff especially when my Internet isn't reliable. Frak the online clouds and services. I still prefer to do stuff offline and locally!
Ant(Dude) @ Quality Foraged Links (AQFL.net) & The Ant Farm (antfarm.ma.cx / antfarm.home.dhs.org).
"Funny thing is ..."
It's NOT funny. Microsoft has a LONG history of releasing buggy programs.
Microsoft fixed more than 2,403 bugs in Windows XP, before abandoning it.
Is that from a macro viewpoint, the Microsoft vampire is sucking more blood ( $ ) from the global economy than ever while providing no more functionality to its hosts / victims. In other words the ecenomic efficiency of Microsoft's products just got lower.
I'm currently working as an editor. Word is my main tool. And, I gotta say, Word's pile of crap, cloud or otherwise. It's crufty, it falls over, it's still lacking basic functionality like reveal codes and non-breaking character strings (\mbox{} if you know LaTeX). But since it is so embedded in the workflows of major organisations, it would take a nuclear crowbar to rip it out. For example, publication departments invest a lot of time and therefore money in developing pathways to take 'ing Word docs into 'ing InDesign with maximum preserved tagging. Their whole publications division centres on Word -- documents are prepared using custom styles (Word templates), proofed and collaborated over using Track Changes, checked using tools like Grammerly and PerfectIt. Equations are added in using MathType, and so on. Govt depts, businesses of all sizes, they've bought into the proprietary software toolchain from one end to the other. Microsoft and Adobe are the unholy duality. Word and InDesign. The clever thing is that 98% of users don't need 98% of what Word can do, and yet M$ has got them to buy it.
For 20 years, eternity in IT, the biggest competitor for Office has been previous versions of Office. M$ knew they had to move their customers onto a subscription model while they were still so dominant in the market, and they've done it.
Plenty of tools can do what Office does, sure. WordPerfect is still a great product; but nobody in business or govt (unless an OS enthusiast) is going to learn anything they don't have to. M$ relies on that inertia, and the investment already made in Word, and it's going to be a solid tactic for some time to come.
Never
What happens if you miss a payment or stop all-together? Does the program stop working? I'm guessing the cloud storage might stop allowing new files but who knows
Vista had many problems, so many people paid a full price again for Windows 7.
If there are hundreds of millions of current users who lack technical understanding, should it be okay to stop maintaining the software?
It eventually had to happen as sales of MS Office shunk and their massive marketing push of their online version( MS Office 365 ) took upgrades and pre-loads. it doesn't change the fact that the PC market has been shrinking quarter after quarter for a few years now and that means fewer MS Windows users.
How they are getting increasing revenue from a shrinking market share is interesting and eventually will fail. Eventually.
I meant fixes. Each update may have fixed several issues.
Office users know no better and are convinced that they use 100% of office...
What I see is that MS have noticed the significant move to Linux/BSD and have lost a great deal of market as a result.
The business people at MS put their thinking caps on and saw a way to charge people for running Linux, and Azure is the result.
What I've not seen any mention of here, is that Azure itself runs on Linux. So this is a weird situation. MS are guaranteeing TOS for Windows in Azure, which is backed up by rock solid Debian[1] providing the network switching layer, which is much more critical than a single VM.
1: https://www.theregister.co.uk/...
Why UNIX?