Assessing the Role of Microsoft’s Office 365 in Its Cloud Success
Office 365 is the leader
Citing a study done by Bitglass, Techmobile stated that globally, ~59% of the organizations used either Google’s (GOOG) G Suite or Microsoft’s (MSFT) Office 365 in 2016. This percentage does not include the organizations wherein cloud offerings like Slack and Dropbox though are used but not officially sanctioned by an IT (information technology) department.
Notably, Office 365, which Microsoft launched in 2010, continues to be a leader in cloud productivity space.
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Office 365 increasing adoption
Office 365 has also reported the highest growth in adoption. Office 365 is deployed in more than one-third, or 34.8%, of organizations in 2016, compared with 25% in 2015. G suite was used by 24.5% of organizations in 2016, compared with 23% in 2015.
Still, given the increasing market share of G suite, the threat posed by G suite cannot be ruled out. The difference between these two productivity suites has been shrinking over time.
In the SaaS (software-as-a-service) space, ERP (enterprise resource planning) and collaboration reported the largest growth in calendar 4Q16. Collaboration is the largest segment in the SaaS space, in which Oracle (ORCL) and Google reported the highest growth. It was G Suite collaborative apps that propelled Google’s growth story.
Microsoft’s dominance in the collaboration sector helped it achieve a leadership position in SaaS. As both players are aggressively aiming for growth in this space, competition is bound to heat up.