Microsoft has released its results for the last quarter of 2014 (aka Q2 2015) with their push towards Office 365 subscriptions/rental annual fees growing strength.
According to the company, there are now over 9.2 million people who have moved from the ‘single pay’ Office option to the heavily pushed Office 365 Home or Office 365 Personal annual payments. Microsoft says that’s “up 30% sequentially over the last quarter”.
That’s not surprising since it’s hard to find any other Office option in most stores.
Microsoft hasn’t released similar numbers for sales of Office 2013 to consumers or businesses, making comparison difficult.
They have said that “Office Commercial products and services revenue declined 1%” because of the move to Office 365 business products. Cloud services to businesses (Office 365, Azure and Dynamic CRM Online) grew a whopping 114% with annualized revenues of $5.5 billion.
The company is divided up in ways that make it difficult to see the performance of individual product groups. Office 365 non-business sales are grouped under ‘Devices and Consumer’ with sales of smartphones, Surface machines (up 24% in Q2 and topping a billion $ for the first time), Xbox hardware and even advertising revenue from Bing. That makes it hard to figure out how Microsoft’s major products are doing, aside from the carefully worded bullet points in the press release.
You can read the rest of the report online. As usual it’s hard to wrap your head around the enormous numbers involved (‘a billion here, a billion there’).