Slashdot Mirror


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.

12 of 250 comments (clear)

  1. Vendor lock-in stick by Tablizer · · Score: 4, Insightful

    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.

  2. Absolutely baffling by Weaselmancer · · Score: 5, Interesting

    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.
    1. Re:Absolutely baffling by vux984 · · Score: 4, Informative

      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.

      The issue is that 98% of people who use office exchange documents with the other 2%.

      The other issue is that office 365 includes outlook, which open office does NOT match in any capacity. And the subscription includes a decent mailbox, with alll the bells and whistles - webmail/calendar/contact
        mobile sync, windows active directory integration, etc... its a hell of a lot more than 'renting a word processor'.

    2. Re:Absolutely baffling by Anonymous Coward · · Score: 5, Informative

      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.

      Openoffice is unfortunately a pretty dead project and should probably not be touched or recommended to anyone who do not know what they are doing.
      Instead, go with LibreOffice (a fork of Openoffice) that is maintained and have a good amount of developers behind it.

    3. Re:Absolutely baffling by MangoCats · · Score: 4, Informative

      Sorry, I have (been forced to) used Office and recently Office 365 - they are no prize whatsoever. 3+ years ago I worked at a shop that used Google's office suite, it works better, faster and more reliably. I haven't used "local" POP3 mail clients for over a decade, but when I did, Thunderbird and Eudora ran flaming rings around Office.

      The only reason I see to prefer Office to any other mail and calendaring solutions is because it's integrated into the company directory, and if the company would divorce its personnel directory from office, that advantage would disappear too.

    4. Re:Absolutely baffling by MangoCats · · Score: 5, Funny

      I talked with an engineer in ~2005 who "wanted to try Linux" - he asked how he would do things like Word, Excel (Open Office) Photoshop (GIMP), Internet Explorer (Firefox), etc. in Linux. I told him about the equivalent software, his response:

      "You mean I'd have to learn new names and icons for the programs? I don't think I'm up for that much effort..."

  3. Re:No surprise there by cayenne8 · · Score: 5, Insightful

    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.

    It is precisely THAT kind of thinking that is going to possibly eventually *doom* us all to perpetual, rental of software, rather than ownership (perpetual license if you're picky)...and that is NOT a good thing for consumers.

    Once the companies have you trapped in rental..they really have no incentive to improve and innovate now do they?

    We've seen it with Adobe's Creative Cloud rental system....you haven't seen any truly breakthrough improvements to date. Yes, they roll out some nice things here and there, but nothing that is earthshaking. I've certainly not found I miss anything by still using my CS6 apps I bought.

    And we've seen problems with Adobe CC...they will roll stuff out that breaks on peoples systems, and well....you're SOL till they can get an online fix out, meanwhile, you lose business.

    There are also people who've lost out by having their registration get lost in the system or broken, and again...they are SOL till customer service can help, and well, I think with most of these places we know the terms "customer service" and "help" are mutually exclusive terms.

    I can see it going this way with ANY software rental.

    The best way to avoid this is to pay with your wallet.

    --
    Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  4. Not sure it will last... by aaarrrgggh · · Score: 4, Interesting

    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.

  5. Re:No surprise there by imidan · · Score: 5, Interesting

    I ended up converting last year and it is actually a better deal all around.

    Okay. I bought a retail boxed copy of Office 2010 Home some years ago. Let's say 2012, since otherwise it would be Office 2013. It specifically allows me to install it on multiple computers (three to five, I can't remember; I only have it one two). I don't remember exactly what I paid anymore, but let's pretend it was $150 (that's what a standalone copy costs now). That means I've had use of this software for five years at an amortized cost of $30/year. That cost per year continues going down every year that I still use 2010--and I will, because at the moment, I don't perceive that there have been any great advances in word processing technology in the last 7 years. The cost of Office 365 Home is $100 per year. That really doesn't sound like a better deal to me.

    If you want to be a grown up there are things you have to pay for.

    And if you want to be a smart grown up, you don't pay more for things than you need to, especially by paying over and over again for things you can just pay for once.

  6. if you don't like it, *donate* to LibreOffice by Anonymous Coward · · Score: 5, Insightful

    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.

  7. Re: No surprise there by guruevi · · Score: 4, Interesting

    I explicitly convert everything down to a common standard.

    Last time a legal department sent me a Signed PDF which wanted to open some JavaScript and talk to Adobe servers and then I should create an account with Adobe while Adobe held onto my public/private key for signing.

    I opened the PDF in a non-Adobe product, saved and signed it with a copy of my real signature (which the app happily took from the camera), sent it back. It thoroughly broke their automatic processing but they went on with it (insert Johnny Tables reference here) because nobody at the office understood why it wasn't working (it looked like I signed it after all).

    --
    Custom electronics and digital signage for your business: www.evcircuits.com
  8. Re: No surprise there by jon3k · · Score: 4, Insightful
    The only reason this is being pushed is because it's getting harder and harder to convince people they need to upgrade Office. I'd argue that most people could get by with Office 2003 and almost guarantee they could get by with Office 2007 which was released over 10 years ago.

    and is equal or less in cost when amortized against one-off purchases of boxed software

    Maybe if you're upgrading every year? Which we all know is completely unnecessary. Office 2016 Home & Student is $149 and Office 365 Personal is $6.99/mo. That means if you keep your office version for two years, it is cheaper to buy a boxed copy than pay for a subscription. No one would argue you could easily use the same version of Office for TWICE that period of time.

    This is rent seeking, plain and simple. They're trying to structure it in such a way to increase your cost unnecessarily and force you to make purchases you wouldn't have otherwise needed.