I listened to the acquired podcast where they interviewed Steve Ballmer for a few hours. Very nice to get that perspective.
But he commented quite a bit on how office licensing changed and how that made MS filthy rich. Around Office 97 was when they started emphasizing getting the full office suite as a licensing option. Especially for companies this was a big deal because you would just get all the office applications; whether you needed them or not.
And then later around 2011 they figured out that companies really didn't like having to deal with having to buy a lot of office licenses every few years. So it became a yearly subscription instead and at that point the revenue increased again, a lot.
It's the progressive insight that transitioned MS from being windows OEM license dependent (office came with the PC) to being more dependent on recurring SAAS revenue. Companies actually prefer this model. Even though it costs them more.
I've been free from any MS licenses since I started working for startups on a mac. I occasionally use Google docs and gmail. But I haven't really done anything with Word, Excel, Outlook, Powerpoint etc. since 2012. You don't need any of that stuff to run a company. The rare case I deal with a customer that insists on that stuff, they can just give me access to the web version. Or send a PDF. Or one an office file that usually opens fine in drive.
But he commented quite a bit on how office licensing changed and how that made MS filthy rich. Around Office 97 was when they started emphasizing getting the full office suite as a licensing option. Especially for companies this was a big deal because you would just get all the office applications; whether you needed them or not.
And then later around 2011 they figured out that companies really didn't like having to deal with having to buy a lot of office licenses every few years. So it became a yearly subscription instead and at that point the revenue increased again, a lot.
It's the progressive insight that transitioned MS from being windows OEM license dependent (office came with the PC) to being more dependent on recurring SAAS revenue. Companies actually prefer this model. Even though it costs them more.
I've been free from any MS licenses since I started working for startups on a mac. I occasionally use Google docs and gmail. But I haven't really done anything with Word, Excel, Outlook, Powerpoint etc. since 2012. You don't need any of that stuff to run a company. The rare case I deal with a customer that insists on that stuff, they can just give me access to the web version. Or send a PDF. Or one an office file that usually opens fine in drive.