Office 365’s features and security saw enhancements
Previously in the series, we discussed that Microsoft (MSFT) has been pushing itself in the enterprise software space through acquisitions, partnerships, and enhancements to its offerings. Microsoft went as far as to bring SQL Server, one its most profitable products to date, to Linux. This was a turnaround for Microsoft, as it has long been known for its proprietary Windows-focused strategy.
In late February 2016, in accordance with its increased focus in the cybersecurity space, Microsoft announced updates to its Operations Management Suite, Cloud App Security, and Azure Active Directory Identity Protection.
According to VentureBeat, the company’s Cloud App Security, expected in April 2016, will allow users to possess more control over the data that is hosted in the cloud. This includes Salesforce.com (CRM), ServiceNow (NOW), Office 365, Box (BOX), and SAP Ariba (SAP). Office 365 will also see upgrades to its security that will be combined with the company’s Cloud App Security.
Office 365 was significantly improved in February 2016. New features include images that can be inserted into documents straight from the camera and documents that can be pinned to the Start menu. Microsoft Excel also received six new functions.
Office 365 reported 70% growth in fiscal 2Q16
Any upgrade or featured enhancement to Office 365 is newsworthy, as Microsoft primarily generates its cloud revenues from Office 365, Dynamics CRM, and Azure, its cloud-computing platform. As customers continue to shift to Office 365, the Office 365 subscriber base has expanded.
In fiscal 2Q16, Microsoft stated that its Office 365 revenues rose by approximately 70%, with its subscriber base rising by 20.6 million. You can read How Microsoft’s Productivity Business Performed in Fiscal 2Q16 to know more.
Investors who wish to gain exposure to Microsoft could consider investing in the Technology Select Sector SPDR ETF (XLK). While XLK invests ~10.6% of its holdings in Microsoft, it also has an exposure of ~38% to application software.