The plan is working! Microsoft took the long route in moving customers away from the traditional way they used its products with services like Office 365 and Microsoft 365.
And this strategy is clearly paying off.
Redmond has a good thing going with its Microsoft 365 bundle, which is a collection of Windows, Office, enterprise mobility and security point products. The company has worked to get more of the businesses to buy into this single subscription bundle, rather than as separate products.
And as Mary Jo Foley notes, this play is working rather well.
In fact, the company says that more than 25% of the Office 365 licenses it now sells are sold through Microsoft 365.
This new statistic comes straight from Microsoft Corporate Vice President of Microsoft 365 Marketing Jared Spataro, who shared these numbers during his appearance at the Goldman Sachs Technology and Internet Conference on February 12.
Microsoft has done a swell job of using the individual components of the suite like Windows 10 Enterprise, Office 365 and Intune, as a foot in the door. Office 365 is, after all, the biggest piece of the company’s commercial cloud revenue bracket.
Last fall, Office 365 hit the milestone of 200 million commercial monthly active users. Though the software titan is yet to share the number of licenses or seats, nor has it not released any real Microsoft 365 sales or usage figures.
That said, Spataro also said that Microsoft is happy with how it’s selling its Teams group chat and collaboration tool, which he labels as a canvas of projecting the best of Office 365.
Solid wins, all round.