Microsoft Upgrades Office 365; Adds Sharing Features & Mobile Support
Microsoft (NASDAQ:MSFT) is one of the largest enterprise software makers, and almost completely dominates the office productivity software market with the Office software suite. It was relatively late to the cloud computing party, and launched a cloud based version of Office – Office 365 – only recently, to compete with offerings like Google (NASDAQ:GOOG) Docs, Zoho Office etc. Office 365 has seen a lot of traction, especially when it comes to small businesses.
Since Office accounts for around 30% of Microsoft’s Trefis price estimate, Office 365 is a crucial product for Microsoft. Our current $32 Trefis price estimate for Microsoft stands nearly 25% above its current market price.
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Microsoft Upgrades Office 365 to Beat Other Cloud Based Competitors
Microsoft has added around 30 new features to Office 365 to enhance collaboration, communication, sharing and file management of Office 365 users. It has added Lync enterprise chat support for Mac, new Sharepoint connectivity services and support for mobile platforms like Windows Phone 7.5. It has also enabled one-click sharing with SkyDrive, its cloud storage offering, for Office and added support for social networks like Facebook and LinkedIn to it. [1] It is also working to make Office 365 and its other cloud services compatible with other mobile and tablet platforms to increase the reach of Office 365 in the enterprise and stem the marginal decline in Office’s market share by piggybacking off of the growing popularity of mobile devices in the enterprise. [2]
Office currently has around 95% share in the productivity software market, which is expected to decline marginally to around 92% by the end of the forecast period due to the growing popularity of cloud based offerings like Google Docs and Zoho Office.
With Office 365, Microsoft is aiming to gain a dominant market share in the cloud based office software market. Microsoft is also working on the next version of Office – Office 15 – which will be launched in 2013.
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Notes:- Microsoft Cloud Services Get Major Service Updates, New Customers, Press Release [↩]
- Microsoft boosts mobile reach of Office 365, Rethink Wireless [↩]