About that 1 billion Microsoft Office figure ...

By | June 16, 2010, 8:29am PDT

One statistic that Microsoft officials cited on June 15, the day Office 2010 began selling via retail, seemed off to me. According to Microsoft (based on comScore numbers), there are 1 billion copies of Office installed across the globe.

Hmmm. Aren’t there also just over 1 billion Windows PC users out there? Does that mean every single Windows user also has Office on her/his machine?

I asked Microsoft Business Division Senior Vice President Chris Capossela about the data during the Office 2010 consumer launch party in New York City last night. (To see some shots from the party, check out blogger Long Zheng’s pictures of the orange-themed event.)

Capossela said Microsoft and comScore aren’t claiming there are 1 billion Office users out there. Instead, the company is now saying they believe there are about 750 million of them worldwide. (That’s up from the 500 million figure that Microsoft’s Office team has been touting for the past couple of years.)

ComScore is estimating the total number of PCs upon which Office has been installed, which means it includes PCs where Office trialware that may or may not have been upgraded to a full-fledged copy is part of the count, he said. The 1 billion figure also includes pirated versions of Office, as well as situations where individual users have Office running on more than one PC.

“They’re doing extrapolations,” Capossela said. There’s no way they’ve actually gone and counted what’s running on 1 billion PCs, he added.

The comScore Tech Metrix service, which the company launched in 2007, is like the other measurement services. It monitors information from individuals who agree to share tracking data with comScore. The measured Tech Metrix hardware data includes system manufacturer, processor name/type, operating system, service pack, CPU, RAM, hard drive size, CD or DVD drive, screen resolution, video and sound cards, and more. The software tracking includes installed programs and version number, interactive duration, default browser and browser settings, number and size of data files, and multimedia file types.

Other new numbers shared by Microsoft this week include the Redmondians’ prediction that more than 100 million consumer and small business PCs will ship with Office 2010 over the next 12 months. That figure includes new PCs preloaded with Office Starter 2010, which is the replacement for Microsoft Works. Capossela said that Works was installed on about 40 million consumer and small business PCs in a typical year.

Another statistic Microsoft is touting is the speed at which Office 2010 users will be able to install the new suite, as compared to previous versions of Office. Using the new “Click-to-Run” streaming technology, customers who decide to install any of the full SKUs will have to wait only one or two minutes to start using Office 2010 (as the rest of the bits stream onto the user’s PC behind the scenes). That’s a lot quicker than the 15 minutes to hour-plus that Office customers had to wait when installing previous Office releases, including Office 2007.

One last point worth mentioning again: Microsoft said earlier this year it was doing away with cheaper upgrade SKUs with Office 2010.  I agree that it seems crazy counter-intuitive that Microsoft isn’t offering its existing Office user base any kind of real deals/incentives to stick with Office in the face of more competition from Google Docs, etc., as well as from the “the Office I have is good enough” syndrome. But that’s what the Softies are doing. You’ve got to hunt a bit for an Office 2010 deal, as my ZDNet colleague Ed Bott noted, but there are some out there.

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

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Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

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Talkback Most Recent of 31 Talkback(s)

  • I'm confused.
    Microsoft knows how many licenses it has sold, right? I mean, isn't that a fairly accurate number with which to begin your calculations?
    ZDNet Gravatar
    tricktytom
    16th Jun 2010
  • RE: About that 1 billion Microsoft Office figure ...
    @tricktytom

    I don't think it's that simple. You have to account for installed older versions on new computers, which is tough to account for, especially on older versions which do not require activation.

    And do you count 60 day trials as "installed" versions? According to this article they are. And what about Mac versions of Office? And what about computers that were retired or destroyed after 2 years of use, how do you count them?
    ZDNet Gravatar
    Michael Kelly
    16th Jun 2010
  • I too wonder...
    Why Microsoft wasn't queried by the blogger to get a handle on how many licenses they have sold, and to compare that against ComScore's "approximation." But hey, this is zdnet where clickbait is "the thing" to do.
    ZDNet Gravatar
    zkiwi
    16th Jun 2010
  • The only figure that counts
    "Microsoft knows how many licenses it has sold, right?"

    But MS needs a win, making up inflated numbers for a press release is all they have.
    ZDNet Gravatar
    Richard Flude
    16th Jun 2010
  • RE: About that 1 billion Microsoft Office figure ...
    "Another statistic Microsoft is touting is the speed at which Office 2010 users will be able to install the new suite, as compared to previous versions of Office. Using the new ?Click-to-Run? streaming technology, customers who decide to install any of the full SKUs will have to wait only one or two minutes to start using Office 2010 (as the rest of the bits stream onto the user?s PC behind the scenes). That?s a lot quicker than the 15 minutes to hour-plus that Office customers had to wait when installing previous Office releases, including Office 2007."

    That figure is believable. The install experience of "click-to-run" is very fast, and I'm pretty sure it's because it installs a bare-bones version and continues downloading features as the user uses them.

    The install from a DVD also seems very streamlined - it's not much more than selecting a couple of options and waiting for a progress bar. The whole "wizard" idea with the eternally clicking "next" on many screens is pretty much gone.

    I'd say Office's installers should be setting the new standard for any application that needs an install. It's about time we got away from crazy 10-page wizards.
    ZDNet Gravatar
    CobraA1
    16th Jun 2010
  • Unless you actually want to install it to run off the hard drive...
    @CobraA1
    "as the rest of the bits stream onto the users PC behind the scenes"...

    Yeah... real useful... If you want to be forced into keeping the install disc in your PC at all times...

    In the real world, this is as useless as Microsoft.
    ZDNet Gravatar
    i8thecat
    16th Jun 2010
  • RE: About that 1 billion Microsoft Office figure ...
    @CobraA1

    The only Microsoft installers I've used that are actually worth the code they're written with are the Windows 7 and Office 2007 "Blue" Edition that was floating around on the internet for a while; Windows 7 just asks a couple of questions and goes along it's merry way, and that Office 2007 copy would INSTALL EVERYTHING without asking.

    If the installer would automatically install everything without asking first, then maybe the Wizard could finally retire. Until then, truly easy installs are relegated to the Mac (when the Registry and Package Manager go away, then maybe Windows and Linux users can enjoy drag and drop installation and uninstallation...)
    ZDNet Gravatar
    nix_hed
    16th Jun 2010
  • who wants to install every feature they wouldn't use...
    @nix_hed If they want to send a free terabyte hardrive then i could see that happening.
    ZDNet Gravatar
    dougogd@...
    16th Jun 2010
  • With a grain of salt
    Our company got some sort of deal (hup.microsoft.com) where I bought a legitimate Office 2010 copy (even before June 15th, odd) for 10 bucks as well as a Visio copy for 10 bucks. I must say, I haven't even installed it, yet, it seemed like such a deal. Given that it appears to me Microsoft is a bit desperate to reclaim the market. (Isn't it at least $399,- for the full-blown package)? Again, this wasn't some sort of shady site but directly from Microsoft. Do they believe that corporate users are somehow going to rip off a company copy anyhow and thus give it away for quasi-free? It struck me as highly unusual.
    ZDNet Gravatar
    rernst99@...
    16th Jun 2010
  • RE: About that 1 billion Microsoft Office figure ...
    @rolf.ernst@...
    This is a common option (home user program) for employees of companies and organizations (HP, US Military, etc) that have large volume licenses for Microsoft products. This isn't a new desparate attempt to reclaim market share either, as it's been around for several years (and many iterations of MS software). I have the same deal through work, as does my wife.

    I have to agree, it is a great program to get people using MS software, and is one of the key reasons I use MS software rather than a free version. happy
    ZDNet Gravatar
    kevsor1@...
    16th Jun 2010
  • RE: About that 1 billion Microsoft Office figure ...
    @rolf.ernst@...

    It is a great deal when you can take advantage of it, but ...

    As kevsor says, variations of the HUP have been around for a long time. I first ran into it when my office was upgrading to Office 97. People who had taken advantage of the program in the previous version were suddenly SOL. The HUP was no longer valid for Office 97 and officially, since the company site license had been upgraded the home users were no longer licensed and if they wanted to continue running Office at home they were supposed to buy a full version. In other words, at that point in time it became a "bait and switch".

    Note: if you ever leave the company according to MS rules you will no longer be allowed to run that HUP copy, you too will have to buy your own full license. But, till then it is a great deal.
    ZDNet Gravatar
    Ron_007
    18th Jun 2010
  • Bulk Discount "Bargain-Barn" MS Office
    The biggest reason asking MS for a count won't work is because most MS software products are volume licensed desktops. A company can buy a license to install 1000 or 10000 Windows and/or Office installs for all of their office machines. There isn't a requirement to actually install all of those licensed. Call it a "desktop copy-charge". Company I work for has a 5000 unit license(s) for Windows Vista and MS Office 2007. We don't have that many desktops but its cheaper sometimes to buy more than needed just to have the flexibility. The more you buy, the cheaper per unit it is to install. Sometimes its cheaper to buy a "bulk license" than exactly what you need. It might also keep you from getting BSA audited.
    ZDNet Gravatar
    mileswade
    16th Jun 2010
  • RE: About that 1 billion Microsoft Office figure ...
    Maybe the reason MS do not offer a discount to upgrade to Office 2010 is because they are attempting (under competitive pressure) to move away from the traditional software purchase model to usage models that in the long term may continue to fill their coffers?
    ZDNet Gravatar
    napierwi
    16th Jun 2010
  • RE: About that 1 billion Microsoft Office figure ...
    I guess the moral of the story is "Never believe statistics unless you falsified them yourself".

    The corollary to this is "Another useless statistic is fabricated every three seconds, including this one!"

    Why don't they just say Microsoft Office still is the predominate office productivity suite on the market and leave it at that. Quoting fabricated statistics just makes them look bad.

    Not offering an upgrade incentive for Office 2007 licensed users also makes them look bad... or does it?

    The productivity boosts my people got from moving from action menu based Office 2003 to process ribbon based Office 2007 was huge and the time saving meant the ROI was only a matter of weeks. If we can see the same kind of gains in time saving and additional functionality again, then Office 2010 will be worth every penny and doesn't need to offer a special discount (essentially cheapening and devaluing their own product).
    ZDNet Gravatar
    jbmetrics
    16th Jun 2010
  • They don't need an incentive.
    It looks as though the vast magority of people want MS over "competing" apps, regardless.
    ZDNet Gravatar
    John Zern
    16th Jun 2010

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