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What the Microsoft 365 Launch Says about the Company’s Strategy

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Jul. 26 2017, Updated 7:36 a.m. ET

Microsoft 365 is Microsoft’s latest bundled offering

Earlier in this series, we discussed the recent launch of Microsoft’s (MSFT) Azure Stack. Earlier this month at its Inspire conference, Microsoft launched Microsoft 365. Office 365, Windows 10, Enterprise Mobility, and Security for Businesses are bundled together to form Microsoft 365, which would be available as a subscription offering.

As the PC market shrinks, Microsoft is seeking ways to boost its Windows 10 and Office 365 subscriptions. Although these offerings are invariably dependent on the PC market, they are also instrumental in the company’s success in the cloud space. Windows 10 is Microsoft’s latest OS while Office 365 is its cloud productivity suite.

By enabling the availability of Microsoft 365 as a subscription plan, Microsoft is trying to retain its customers by providing a single fixed monthly cost for the software needed to run their businesses.

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Microsoft’s integration strategy

There are two versions of Microsoft 365—Microsoft 365 Enterprise and Microsoft 365 Business for SMB (small and medium-sized businesses). The recently launched offering also reflects the company’s effort to include different divisions of the company to work together.

Microsoft employed the same strategy with Dynamics 365. It bundled CRM (customer relationship management), ERP (enterprise resource planning), PowerApps, Flow, and other cloud business application platforms to form Dynamics 365 and made them available through a single subscription. Office 365 suite was also a result of bundling various separate products.

Looking at these launches, including the recent Microsoft 365, it is clear that Satya Nadella, Microsoft’s CEO, is aiming to align separate products and offerings into a mainstream integration.

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