Microsoft Office 365 Subscription Reaches 2 Million Mark

It seems that Microsoft is going back to its good times. The latest report from the company show that it’s newly released product Microsoft Office 365 has reached the milestone of 2 million customers. This is a hundred percent increase from May 29.

Microsoft Office is an innovative online service from the software giant that allows users access to different Office services. The advantage of the service is that users can access their documents or use the platform from any part of the world. The predecessor of the program is called Business productivity Online Suite. With the new service, Microsoft takes its users to the latest cloud technology. The online services include Exchange, SharePoint, Lync, SkyDrive etc. You will also have access to all Office applications with the subscription.

After the release of the online service, Microsoft was able to find 1 million customers for the program, just after 100 days of its release. Now, it has been another 113 days after it reached the one million mark and since the number of customers has doubled, we can conclude that the program is gaining much popularity among the customers and maintains the growth graph.

Now, 2 million customers mean that the program has generated revenue of $200 million a year. It has also become the faster Microsoft service to generate revenue of $1 billion. However, according to the company, it is going to witness a shortfall in revenue as it has changed its business model from licensing to subscription method. This loss of revenue is likely to continue until 2017, or much longer. The company says that even though it would see a loss of revenue in the short term, the decision is going to bring positive impacts in the long run. The company also believes that the new business model would help them, as their already successful ‘software in a box’ approach is showing decline in business.

Another application that changed its business structure is Adobe. It has moved from single license sales to subscription service, and the reports suggest that it has seen a drop in the revenue. This is no wonder as the company has expected this loss of revenue after the transition of the business model. According to the COO of Microsoft, Kevin Turner, the company has “made a very graceful transition from our traditional enterprise agreements and licensing agreements” and “those agreements and customers into the cloud.”
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