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

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.
Written by Mary Jo Foley, Senior Contributing Editor

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.


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.

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