By releasing a new version of the office, Microsoft unexpectedly got me in the spotlight. It seems not such a big deal. However, all the media wrote about the update. And I was really happy, deciding that there are many, tasty and interesting. However, the event, as it turned out upon closer examination, is not so significant, because, for example, in Office 365 ProPlus, which I have been using for several years, all the updates of Office 2020 have long been. I started using some two years ago. And if you look at the page with updates on the official blog of Microsoft, it becomes decidedly unclear where all the fuss came from. Microsoft is probably experiencing a double sensation right now. On the one hand, they, of course, are certainly glad that they were in the spotlight. The media write about updates, bloggers are filming the story of how Office has conquered the world, and stuff like that. On the other hand, it is obvious that Microsoft does not like Office 2020 and released it only because it was indecent to pull further.
Microsoft understands that not one-time sales are important, but a stable cash flow. After all, whatever one may say, Office at the moment remains the largest source of profit.
Comment on the chart below. In Microsoft terminology: More Personal Computing is Windows and games, and the Productivity and Business section is Microsoft Office and Linkedin.
Microsoft’s financial future
Microsoft has published the results for fiscal year 2019. And the graph shows that Microsoft’s financial future rests on two pillars – cloud computing and office software. By the way, cloud computing has already surpassed Windows in net profit and almost equaled the income from Office, and a year ago the lag was much more noticeable.
Since the summer of 2011, when Office 365 was first introduced, Microsoft has been steadily pushing its relevance. Office 365 is a subscription service, that is, you can use it while you pay money. But independent versions of Office, the so-called standalone, are, in fact, users lost for business. They paid the money once and disappeared from the radar, since the basic needs of the office majority are more than covered by Office 2010. For example, when discussing the topic, Roman Belykh said that he enjoyed Office 2003 with great pleasure until he started to fail on Windows 10.
However, there are fewer people like Roman, and users around the world are slowly getting used to and crawling to the subscription model, since 300 rubles a month, or 1 kg of chicken fillet for sale, or two hamburgers are not so much money for most. In the case of the Office 365 subscription, the trick for psychology also works – giving each month 269-330 rubles (depending on the version from 1 to 5 installations) is morally easier than immediately forking out 5,209 rubles (for 1 installation). This is evidenced by the figures from the annual report. The entire Office category grew 10% over the year, while Office 365 soared by 38%. The total number of subscribers has reached 31.4 million.
Microsoft tried to make the “one-time” Office an ugly duckling that you won’t want to buy. To begin with, finding a separate version of Office on the official Microsoft website is a small quest. For example, this is what the main Office page looks like. Not a single mention that there is such a product:
Office 365 tariff plans
To find out that there is a version that provides for a one-time purchase, you can only fall into Office 365 tariff plans. However, looking at the tariff plans, I don’t feel like buying a separate office. Very much he looks scanty. The package does not even have Outlook. It says in red that Office 365 is getting better, and this one just mentioned that services are not supported. It is curious that a separate office is not offered at all for business. Probably, by the way, because of this, such a percentage boost occurs on Office 365. Companies around the world are gradually updating, and they have to fork out.
Next is a comparison between office suites. I don’t know why this happened, but the font is much smaller in comparison than on other pages. Thus, the user is more likely to focus on friendly green ticks, the absence of which in the third column seems to hint that the product is so-so. I was especially pleased with the wording that technical support via chat and phone is provided within 60 days after purchase. It’s not enough that when buying a window pops up with the inscription “Well, don’t! Do not buy, please! Let’s get a better subscription!