Cloud compliance company Skyhigh Networks reports that Microsoft’s Office 365 has seen explosive growth over the last two years, and in the last 9 months went from being used by only 6.8% of corporate employees to 22.3%. 91.4% of companies now has 100 or more users using the service, generating 80% more revenue for Microsoft compared to the usual single software purchase system.
The data was generated by an analysis of 27 million employees, with the company finding OneDrive for Business having the highest penetration rate with 79.1% of organizations possessing at least 100 users, with 18.6% of all enterprise employees actively using it. Exchange Online has the second highest penetration rate – 66.9% of enterprises have at least 100 users. While Skype for Business is used by fewer enterprises, more users are using cloud-based Skype for Business than Exchange.
The report notes that Satya Nadella’s vision for remaking Microsoft into a subscription company where customers rent rather than buy software appears to be a resounding success, and that the swiftness and scale of the company’s pivot under Satya Nadella’s leadership was impressive.
While Microsoft has not fared as well in the consumer market, it is clear that they are strongly doubling down on an area where their dominance is much more assured.
The full report can be read here.