I’m always wary of discounting Office: the closer you are to the corporate world, the more you appreciate its reach, but on the flip side, the further away I get from that world the more I appreciate how much of Office’s importance is based on habit rather than need.

Ben Thompson in his April 30th, 2015 newsletter.

Microsoft targeting $20bn cloud business by 2018, currently at $6.3bn run rate

Microsoft Corp. wants to reach annualized revenue of $20 billion in its corporate cloud business in the fiscal year that ends in June 2018.

At the moment, it’s:

The company last week said it has a current run rate of $6.3 billion for the cloud business, which includes its Azure data-center services and cloud versions of Office software and customer management programs.

Microsoft targeting $20bn cloud business by 2018, currently at $6.3bn run rate

Microsoft’s $5.5bn cloud business

Microsoft (MSFT)’s commercial cloud revenue rose 114 percent in the fiscal 2015 second quarter, marking its sixth consecutive quarter of triple-digit commercial cloud revenue growth. The technology giant’s commercial cloud revenue is now on an annualized revenue run rate of $5.5 billion too.

All they have to do is retain and then convert the office crowd. Should be easy. As an old boss of mine used to say, “just don’t fuck it up.”

Ben has a good analysis of Microsoft from a corporate strategy stand point in his recent podcast.

Microsoft’s $5.5bn cloud business

As the new space intended, I’ve formed interesting, unexpected bonds with my cohorts. But my personal performance at work has hit an all-time low. Each day, my associates and I are seated at a table staring at each other, having an ongoing 12-person conversation from 9 a.m. to 5 p.m. It’s like being in middle school with a bunch of adults. Those who have worked in private offices for decades have proven to be the most vociferous and rowdy. They haven’t had to consider how their loud habits affect others, so they shout ideas at each other across the table and rehash jokes of yore. As a result, I can only work effectively during times when no one else is around, or if I isolate myself in one of the small, constantly sought-after, glass-windowed meeting rooms around the perimeter.


That’s what I ended up doing at Dell, except they had a lot of little glass “flex spaces.” I just claimed one each day for a year and half. It was great!

Unlike Office Online and Google Docs, the Dropbox badge doesn’t support real-time editing. That means if you edit a document while someone else is working on it, you’ll still be able to save it locally, but you’ll have to manually figure how you want to merge in your changes.

Everything sounded awesome until I got to that part…

For wider adoption, Chromebooks must unseat the MSFT white collar toolchain

Survey on corporate Chromebook buying

Good assessment of the hurdle for wider Chromebook adoption:

“Every application that businesses use would have to go through that transformation before a Chrome OS device can takeover in the business world,” Campbell said.

From trying to use Chromebooks “at work” over the years, I agree: of you’re work is all in on Google Apps and has dumped the Microsoft white-collar toolchain, you’re set. Otherwise, it’s really hard to interoperable with the Exchange, Word docs, etc. And, switching from desktop Excel to Spreadsheets is tough, as are presentations.

The core toolchain of the “enterprise” is Microsoft Office, and Google has to go unseat that if they want to move more Chromebooks.

I looked at corporate Chromebook adoption and buying in a 451 report earlier this year and came to similar marketshare rates.

For wider adoption, Chromebooks must unseat the MSFT white collar toolchain