Microsoft hits 2 million-plus Office 365 Home Premium subscriber mark

Microsoft hits 2 million-plus Office 365 Home Premium subscriber mark

Summary: Nine months after launching its Office client software as a service, Microsoft officials say Office 365 Home Premium has reached the 2 million-plus subscriber mark.

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Microsoft has more than 2 million Office 365 Home Premium subscribers, the company disclosed on October 24, up from 1 million in late May of this year.

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Office 365 Home Premium is a subscription version of Microsoft's Office client software. It is key to the company's mission to reinvent itself as a devices and sevices, rather than a pure software company.

The company launched Office 365 Home Premium on January 29. For $99.99 per year, Office 365 Home Premium allows users to install Office client apps on up to five PCs and/or Macs in total. Users who subscribe rather than buy the single-use Office 2013 complement outright, also are supposed to receive regular feature updates and synchronization capabilities by signing in through Office.com.

Microsoft Office 365, as a whole,  is operating at a $1.5 billion annual run rate, officials said earlier this summer. In April this year, Office 365 was at a $1 billion run rate.

If you're trying to figure out where Office 365 Home Premium sits in Microsoft's new reporting structure, it falls under the "Devices and Services -- Other" category, along with Bing, MSN and first-party video games. The growth of Office 365 Home Premium came, partially, at the expense of "Office Consumer," which means Office preinstalled on new PCs (I believe). Office Consumer is part of a different business unit in the new structure: It falls under "Devices and Services -- Licensing."

Microsoft's Q1 FY2014 earnings were solid at $5.24 billion, or 62 cents a share, on revenue of $18.53 billion. Enterprise products and services were particularly strong (as usual) during the quarter.

Topics: Cloud, Collaboration, Microsoft

About

Mary Jo has covered the tech industry for 30 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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36 comments
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  • 9 months after release

    MS still makes Mac users pay for price for a suite of products that mostly don't work on a Mac.
    1,2,3
    • Idiots can flag the comment as much as they want

      but I notice that not one person has the guts to suggest that it is in any way incorrect . . . because each and every one of them knows that it is absolutely correct!
      1,2,3
    • Why is that a problem?

      Mac owners are used to paying a premium for stuff that works better elsewhere, and for less.
      ScottCarmichael
      • @ ScottCarmichael

        You put in a very funny comment.

        Mac owners always like to think that they own a premium Apple product. Money saved from not purchasing all Apple products (Mac, iPod, iPhone, iPad, iOS apps, Mac apps, a lot of accessories) could be put into buying a new car to replace an old car (like a new Honda Civic for $16K in 2013 to replace older Honda Civic bought for $15K in 1994). Which is what I did.

        I also saved money from never owning an iPhone. My estimate was that I saved atleast $2.5K (including carrier contract costs, bandwidth costs and accessory costs and of course app costs etc) upto $5K every year. I must have saved a cumulative total of $15K so far starting 2007 from not owning an iPhone. I use a $20 feature phone made by LG with Symbian OS on it and use prepaid model for about $20 per month for 1500 minutes to enable me to talk to all of my family (mother and sister's family talk needs). I also negotiate a deal where I do not have to pay any taxes on the above $20. So I saved about $50 per year from this discount.

        I also have never bought a Mac. I estimate my cost savings to be about $3K to $5K from adding up Mac costs, hardware upgrade costs, genius bar costs and importantly unbelievably high accessory costs.

        For a PC (on which I type now), I bought a used 1999 IBM PC (back then Lenovo did not own IBM's PC division yet) with 80 GB hard disk and 2 GB RAM for $250 after tedious negotiation. It was a very costly PC then. The original seller got it for $5000 without accessories back then. But I bought it and upgraded the CPU using a used mother board to the new iCore CPU back in 2007. I also upped the memory DRAM size from 2 GB to 16 GB using daughter slots on the tower.

        I watch my movies using a daughter video card that I inserted onto the tower to the PCI bus. My cumulative savings from never buying an iPod must be atleast $2K to $4K (including possible song purchases from iTunes store). I inserted an new audio card into one of the daughter slots and changed the driver settings to allow the audio chip to perform hi-def and room auditory algorithmic modulation. This cost me about $50 on the whole.

        So now my PC has built-in speakers that almost match the Mac speaker capabilities as well as any other explicit PC speaker device (like from Logitech).

        I got a used IBM preferred pro keyboard and that has served me well so far for the last decade.

        I also purchased a $129 or so Microsoft Windows XP SP3 OEM license in 2004 from Ebay. That served me well till 2012. I then bought a brand new Microsoft Windows 7 OEM license which still serves me well though it was costlier than $129.

        Essentially from my PhD in mid-90s till my time now, I probably spent a total of $900 or even lesser on my PC. I spend about $200 to $220 per year on my feature phone. I switch it off when I am on my vacation and the prepaid model allows me to turn off the subscription if I don't want it and then turn it on again later with a new number or same old number for a $10 price (using a different SIM card though which I have to get). But I did manage to convince the carrier customer service folks once to reuse my older SIM card.

        All this points out one thing - Apple is a highway robber. Stay away from it. That is, if you want your retirement.
        calahan
        • you know

          You can save even more money, if you don't buy a car. And a PC. You can save even more money by not buying a home and living in the woods.

          The question that remains is, what will you do with the so much money you saved.
          danbi
          • @ danbi

            You got it right!

            The current Fed policies cannot favor inflation. Inflation rates or 2nd order inflation growth appoximations have grown much in the past decade primarily due to currency and gas price fluctuations. Which are again related (the big O of macroeconomics).

            It remains to be seen if the new Fed chair Dr. Yellen will favor higher inflation rates. But I doubt it considering their credibility and reactive functions. Still it remains to be seen.

            Why is the above important?

            Because house prices cannot breach their 2008 threshold anytime soon. Asset price cyclicality rides the housing market at the moment along with artifical props from QE rounds. But the Fed's QE rounds are ballooning their balance sheet. So a taper is necessary now or in the near future.

            When the taper starts to happen, mortgage bonds will take a beating. And correlatedly house prices will decline again (marginally). That may be a better time to buy.

            Finally I dont see housing prices going too high in an bubble like manner without QE support. So expect them to be range bound.

            This can also explain why I am in no hurry to buy a house. Money saved can always go to three kinds of wills, right! Trust for philanthrophy or trust for next generation. So money saved or money earned through career can always have some purpose. No hurry to spend it if you know what I mean.
            calahan
        • Wow

          All of those are bullcrap, one hundred percent bullcrap.
          Michael Alan Goff
          • @ Michael Alan Goff

            What do you mean by bullcrap?

            I really have the machine that I said I have.

            And I only invest in treasury and high grade corporate bonds for income flow.

            But your response is what I get when I tell people that I don't own new age electronics.

            But to each his or her own belief system.

            I believe in minimalism as a philosophy. Of course, my PhD in Computer Science has helped me to get to high level engineering positions. But I really think there are better uses of alogrithmic thinking than to use it to build products for a company.

            I know I have wasted 15 years of my professional life and am moving away from technology industry in many ways.
            calahan
    • Easy solution

      If you plan to do real work on your computer, just get a 500$ PC and you will then be able to do all the real work you can't do on your 2000$ Apple.
      SylvainT
    • No one is making Mac owner do anything.

      I assume Mac users still have free will and can pick or choose whatever software they want to purchase and use.

      They could have always bought iWorks for much less and used that. iWorks is free now, so you will not have to cry any more tears over the prices Microsoft is asking.
      Emacho
    • eh?

      The core apps (the ones people mainly want, i.e. PowerPoint, Excel, Word, and Outlook) work just fine on a Mac. Heck, if anything, they're slightly better than their Windows counterparts.

      Sure there's no Publisher or One Note.... One Note would be nice to have, but Publisher is not a serious program, and not something anybody would miss.
      Mac_PC_FenceSitter
  • Happy days for Office 365...

    Google apps and other competitors including the fruit company products are a joke.
    Owl`Net
    • That's fair

      MS needs at least one success, given how few they have had over recent years. Surface, Surface Pro, Windows Phones . . . geez, how does one company get it wrong so often!
      1,2,3
      • Success

        Interesting that you focused on three products where the hadn't the results they would like. But you fail to mention the success from products like Xbox, Windows Server, SQL, Exchange System Center, Azure, Windows and Office / Office 365. Did you notice that the have more successful products than failures?
        dvm
      • That's fair.

        After all they've done right, there should be some mess-ups in the middle.

        I mean the Xbox is a powerful 3rd-player, the Surface Pro is an excellent machine, and Windows is doing well, so that's three accomplishments to count.

        Of course everybody makes mistakes.

        Apple has iWorks and Apple TV to refine, whereas Google has Chrome OS and G-TV to take care of.

        Companies can't always be successful, you know.
        ForeverCookie
        • And you completely missed the sarcasm

          directed at one of ZDNet's worst trolls!
          1,2,3
      • I used to rag on the Surface RT 'til I got one.

        Now I think it's amazing. As soon as they get the real apps in Metro (like Photoshop) and Desktop goes away, I think it'll be pretty darn amazing.
        ScottCarmichael
        • They will never do this

          Metro's WinRT programming framework just isn't powerful enough to host something like full Photoshop.... too sandboxed, too limited, too many necessary win32 and .NET calls that will keep your app from being approved.
          Mac_PC_FenceSitter
        • keep dreaming

          What made Windows so "successful" was the abysmal security model, that let anyone write "some" software without much discipline. Ask those developers to follow more disciplined programming model and they start looking elsewhere. The "relaxed" security of Windows came to eventually bite Microsoft back, but there is no such thing as free lunch.

          While WinRT by itself is a fine idea, it has no future being called "Windows". It does not have enough "features" to support a complex software system like Photoshop. Not impossible to write one, but it will not be sharing the same architecture with Photoshop and many might not find it usable.
          danbi
    • Fruit company?

      Owl'Net, when you use terms such as, fruit company, your credibility, authority, respect, and the like become flushed. However, I doubt you care.
      BubbaJones_