Microsoft Office 365 Home Premium: 3.5 million subscribers

Microsoft Office 365 Home Premium: 3.5 million subscribers

Summary: Microsoft is continuing to grab consumer customers for its Office subscription business at a rapid clip.

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Microsoft's Office 365 Home Premium subscription business is continuing to grow steadily, and is now at more than 3.5 million subscribers.

o365homepremiumsubs

The latest tally was reported by Microsoft as part of its second quarter fiscal 2014 numbers.

In October 2013, Microsoft officials said there were more than 2 million Office 365 Home Premium subscribers, up from 1 million in May of last year.

Office 365 Home Premium revenues are reported through Microsoft's "Devices & Consumers Other" category under its new reporting structure; the rest of Office 365 reports into a different segment, the "Devices and Services Licensing." (Here's my feeble attempt to explain Microsoft's new reporting structure.)

Microsoft officials conceded that strong Office 365 Home Premium sales are impacting its Office Consumer business. Office Consumer revenues were down 16 percentage points this quarter "due to the shift to Office 365 Home Premium," officials said.

Microsoft officials also noted that Azure seats, like Office 365 ones, grew "triple digits." Microsoft didn't provide Azure subscriber numbers as part of its earnings materials.

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.

On the devices side of the house, Microsoft officials said Surface revenues reached $893 million for the quarter, up from $400 million the previous quarter. Overall, the company reported second quarter earnings of $6.56 billion, or 78 cents a share, on revenue of $24.52 billion. Non-GAAP earnings for the second quarter excluding various revenue deferrals were 81 cents a share.

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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23 comments
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  • Microsoft Office 365 Home Premium: 3.5 million subscribers

    Microsoft shouldn't be too worried about the decrease in consumer Microsoft Office. They should be proud people are continuing to use Microsoft Office even if its the web version. The customers are there and they will quickly make up that dip in revenue.
    Loverock.Davidson
    • It's not the online version

      The $99 annual subscription is for Office 365 Home Premium that you can install on up to five devices -- the article is NOT talking about the online version. Honest. We've got Office 365 Home Premium installed on our three computers -- because the subscription cost beats the heck out of the "purchasing" cost when you have more than one computer and expect to upgrade regularly.,
      dl@...
  • Happy with MS Office 2011 for Mac

    At present and the near future we do not see us moving to 365, while Office 2011 serves us quite well. We are now using iWork more than MS Office. You are correct it is not MS Office not as powerful, does not have the myriad of features of Office. iWork does have 99% of what we need and use. When we need some specialize feature of MS Office we have it, but rarely find that occurring. Oh, we are using both the iWork '09 and the new one.

    Use the tool that best suite you and your business. For many folks Note Pad or Text Edit is all they need.
    BubbaJones_
  • Office 365 makes no sense

    There is a huge ecosystem of add-ons and tricks to make the traditional desktop versions of Office do what you want, more or less, but Office 365? "Unresolved Issues" are likely to remain forever unresolved (as Cornell is finding out.)
    JustCallMeBC
    • What's with Cornell?

      Haven't heard anything about it using Office 360 and involving problems
      markbn
    • ???

      Have no idea what you're talking about.
      Rann Xeroxx
      • There's this thing called "Google"

        And sometimes magical things will happen if you ask it to search on items of interest, like, say, "Office 365 unresolved issues Cornell".

        Gawd....
        JustCallMeBC
    • Switching to 365 for business

      This includes SharePoint and Exchange. Yes, you lose the ability to install your own programs on your servers, but that functional gap is being closed by an app model. The SharePoint apps in particular are starting to take shape and are very useful.
      frankwick
      • why?

        Now WHY would someone flag the comment I just made?? It was very factual and deals with my every day job.
        frankwick
        • They're not flagging you or your comment, they're flagging your

          chuzpah for even using a MS product or service.
          adornoe
    • Office 365 allows

      You to locally install the office program locally on your PC too. You get the best of both worlds with a subscription.
      Sam Wagner
  • I feel forced...

    I have office for mac 2011 and tried to get it registered on my new iMac... after hours on the phone on hold/on auto help/on foreign live help... over 3 days I give up and am on the 365 trial because I needed to get up and running... and may end up throwing in the towel and paying for 365 which is the same office 2011 I paid for all ready.
    Reminds me of why I switched to mac so many years ago when I had Lotus Smart Suite office that I loved and buying a new PC I was required to Buy MS Office bundled in when I absolutely didn't want to- I wanted to just use my lotus suite.
    swenk
    • SmartSuite user here

      Actually more of a fan of Ami Pro than any of the other tools. Fired it up on a VM the other day just to reminisce. I felt like I was the only Ami Pro user in the world when everyone was moving from WordPerect to Word for Windows.
      frankwick
  • 3.5 million others apparently were forced, as well.

    When people speak, nostalgically of course, about ancient applications such as Lotus Smart Suite, AmiPro, etc., then it is clear to me that this is a person without the capacity or will to comprehend that *everything* in technology advances.

    If it were not for MS, Apple, and other for profit technology companies Open Source would still be in the 1990's. For profit businesses must compete for customers, as such they must innovate.

    Now, you may not like what Microsoft or others offer, and that's perfectly fair. But if there were no standards, and no profit motive, where do you think we'd be?

    Hell, I miss my Amiga. Ah, the good old days of 4096 colors. Now that was cutting edge.
    Raid60
    • amiga ?

      My atari beat your amiga :p
      ThinkFairer8
      • Atari 800xl user here

        Just talking about that to my kids. I told them the concept of upgrading the UI never crossed my mind because all I had was a command prompt.
        frankwick
        • Ah, an Atari 800 with 48K

          I even had the Action programming language. Those were the days. Though I got tired of execute a poke 82,0 to set the left margin over those two spaces!
          Raid60
  • Office 365 is a good deal!

    I think Microsoft offers a very attractive deal with Office 365 Home Premium. At only $99.00 per year for 5 PC's or Mac's its a no-brainer. Think about it, full office cost $220 a copy (PC or Mac). Why would I want to pay $880 to have office on my Win 8.1 Pro desktop, laptop and tablet as well as my wife's MacBook Air when I can pay $99/yr for office on all our devices that's always current and up to date? For people with multiple devices and need office its a spectacular deal. Plus I get an additional 20GB of SkyDrive, OneNote, 60 mins. of Skype! Works for me!
    jgfoley
    • Mr. jgfoley,

      It is not a good deal because you will be paying that $99 per year forever!

      I am still using Office 2003 and it works just fine. Assuming an initial cost of $100 back then, I will have paid $10 per year. That means that you are paying an additional $89 per year, and are probably not using all those "extras."

      As to your claim that it is worth it so you can have "...always current and up to date," what good is that if the basic package does all you want it to? I write novels for a living and Office 2003 works just fine, thank you.

      Sounds to me like you've been brainwashed by MS into accepting their massive push to force all of us to rent software from them rather than buy it once.

      Doc
      Doc.Savage
      • For those that like to keep their software up to date

        and have multiple pcs, it is indeed a good deal. For you it isn't, but they do still allow you to buy a traditional license if you want to go that route.
        Sam Wagner