Sign up with GoogleArthur
Honorary Master
Please explain. Wrong where? The last time I checked 30% of $0 is exactly $0.00 recurring.
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Microsoft Office for iPad launched
- Thread starter Jan
- Start date
Arthur
Honorary Master
Hehe. Of course they're paying Apple 30%, so Apple doesn't have bifurcated App Store rules.
30% of a free download is very healthy margin to be making. But the revenue itself is, er, smaller than miniscule.
30% of a free download is very healthy margin to be making. But the revenue itself is, er, smaller than miniscule.
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Fudzy
Guest
30% of a free download? So if somebody signs up for Office365 through the app, Apple will make $33? I hope Microsoft drops the price by at least the same amount for people who don't go through the app.
I bought my office 365 subs directly from Microsoft, so Apple don't get any cut from me.
The majority of these are bought from MS directly
Fulcrum29
Honorary Master
MS and Google is on the verge to drop pricing.
They have to keep the price offered in the in-app subscription the same as the lowest price offered elsewhere
Arthur
Honorary Master
Here's the game plan:
Office on the iPad isn't very compelling for most users, except those who already use Office in business, and who want some sort of Office capability on their iPads. So, Msft will focus on getting the businesses signed up on Office 365 and take the revenue there.
Microsoft expect a very, very tiny percentage of Office for iPad users to actually buy an Office 365 subscription through the app. Ands that's fine. The cannibalisation of Office revenues is expected to be insignificant.
These things are very hard to track and report on, but I hear that the firm expects direct O365 sales via the iPad app to be in the tens of thousands in the first year - a barely-registerable blip on the sales needle. The overwhelming majority will simply apply their already existing O365 subscription to cover the iPad version. In Year 2, almost all renewals are expected to be directly with Microsoft ... <2% of iPad O365 users are expected to renew via the App Store app.
By year-end, expect to see a slew of articles about "disappointing" sales of Office for iPad, being "much lower than expected", etc, etc. These will all be Apple-driven and Apple-seeded articles, and the media will soak them up. They will be contrasted by Microsoft's brief remarks that Office for iPad sales have "met or even exceeded expectation" and are "bouyant". They'll both be right. Apple can only report on sales through its App Store, which will be "disappointing". It is also strategically interested in decoupling iPad value from Office value, so will underplay the role of Office for iPad. Microsoft will know the real usage through the O365 activations for iPad. And the usual combox/forum wars will rage, with much more heat than light.
Office on the iPad isn't very compelling for most users, except those who already use Office in business, and who want some sort of Office capability on their iPads. So, Msft will focus on getting the businesses signed up on Office 365 and take the revenue there.
Microsoft expect a very, very tiny percentage of Office for iPad users to actually buy an Office 365 subscription through the app. Ands that's fine. The cannibalisation of Office revenues is expected to be insignificant.
These things are very hard to track and report on, but I hear that the firm expects direct O365 sales via the iPad app to be in the tens of thousands in the first year - a barely-registerable blip on the sales needle. The overwhelming majority will simply apply their already existing O365 subscription to cover the iPad version. In Year 2, almost all renewals are expected to be directly with Microsoft ... <2% of iPad O365 users are expected to renew via the App Store app.
By year-end, expect to see a slew of articles about "disappointing" sales of Office for iPad, being "much lower than expected", etc, etc. These will all be Apple-driven and Apple-seeded articles, and the media will soak them up. They will be contrasted by Microsoft's brief remarks that Office for iPad sales have "met or even exceeded expectation" and are "bouyant". They'll both be right. Apple can only report on sales through its App Store, which will be "disappointing". It is also strategically interested in decoupling iPad value from Office value, so will underplay the role of Office for iPad. Microsoft will know the real usage through the O365 activations for iPad. And the usual combox/forum wars will rage, with much more heat than light.
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The initial download is free. If you want to create docs or edit, it is an in-app subscription. Of which Apple get the standard 30% commission
Arthur
Honorary Master
Well, not quite to stark.
Of course there is an In-App option to take out an Office 365 subscription if you don't already have one. And of course some Apple iPad users might well do that. But the overwhelming majority will apply an existing Office 365 subscription, taken out directly with Microsoft and completely bypassing Apple, and in these cases (ie the vast majority) Apple's revenue will be $0.
I already have an Office 365 subscription. I can now download the full version of Office for iPad on my iPad and use it fully. Apple get R0.00.
What's really interesting is how many of the real Office users only have an iPad, and how many also use Office professionally on a Windows machine? Microsoft thinks that by far the largest market for Office for iPad is business users who already use Office on PCs at work. And they are being targeted in any cases with an Office 365 subscription. Which is amazingly good value. And for which Apple get 30% of $0, and that covers the iPad version on 5 devices and 5 PCs. And the Android version can't be far off. It's been ready for quite a while.
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You seem wrong so far. MS Word for iPad is the 7th highest grossing app on the App Store
Very, very few people already have a 365 subscription. If I remember correctly, it is less than 4 million subscribers
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Fudzy
Guest
Why though? Is it watered down compared to the standalone app? If so what is the point if the already established Office apps do a good job at viewing and doing simple changes? Microsoft seems have got the party too late... again.
It is much better than the existing Office Online (and their old crappy mobile versions).
It is closer to the desktop versions of their apps than their old mobile versions
Arthur
Honorary Master
Maybe you don't realise that Office 365 includes everything you already know and have as MS Office - fully installed on your desktop PCs, with full local applications just as you've always known Office for the past twenty years.
It also includes the online cloud-based versions of the apps, so you can access you mail and read/edit/create/manage your documents from any internet-connected PC anywhere on the planet.
And if you have the business versions of Office 365, you get hosted Exchange. Which means that your Outlook mail is accessible from anywhere anytime, on any PC, any device, or even from any browser. Plus you get Lync and some other stuff businesses like.
So, if you're a regular Joe user of Office apps (Word, Excel, PowerPoint, Access, Publisher, Outlook, etc), pick the Office 365 subscription that suits you. In all cases you still get the full installable code (like always) that can be installed on FIVE PCs, five devices (and iPad is now covered as of the 27th). It includes free upgrades to the latest versions as they become available, so you're always at the latest level. Plus it includes 24x7 support.
Don't see Office 365 as the online-only version. It's everything you know, plus online, plus free upgrades, for at least 5 PCs AND 5 devices per single subscription.
It also includes the online cloud-based versions of the apps, so you can access you mail and read/edit/create/manage your documents from any internet-connected PC anywhere on the planet.
And if you have the business versions of Office 365, you get hosted Exchange. Which means that your Outlook mail is accessible from anywhere anytime, on any PC, any device, or even from any browser. Plus you get Lync and some other stuff businesses like.
So, if you're a regular Joe user of Office apps (Word, Excel, PowerPoint, Access, Publisher, Outlook, etc), pick the Office 365 subscription that suits you. In all cases you still get the full installable code (like always) that can be installed on FIVE PCs, five devices (and iPad is now covered as of the 27th). It includes free upgrades to the latest versions as they become available, so you're always at the latest level. Plus it includes 24x7 support.
Don't see Office 365 as the online-only version. It's everything you know, plus online, plus free upgrades, for at least 5 PCs AND 5 devices per single subscription.
No one was questioning that. We said that very few people are already subscribed to it. So much of the future subscriptions could well come through the App Store (And judging from the Top Grossing charts, that has started happening)
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Fudzy
Guest
What's the catch though?
Fulcrum29
Honorary Master
The home user package is open with Word and Excel, but limiting Powerpoint. You don't need to pay to utilise these two mobile services (applications).
There's no catch. It's a pretty great subscription
Considering the price that's hardly surprising.