What’s the Rationale behind Microsoft 365?



What is Microsoft 365?

Microsoft (MSFT) has launched an all-in-one product dubbed Microsoft 365. It brings together Office 365, Windows 10, security for businesses, and enterprise mobility. The tech giant introduced two versions—Microsoft 365 Enterprise and Microsoft 365 Business—for small and medium-sized businesses.

The bundled software offering is an effort to bring dissimilar divisions of the company to work together. Satya Nadella has been pushing for this sort of integration since he became CEO (chief executive officer) of the company a few years ago.

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The company announced this at Microsoft Inspire in Washington, DC, on July 10, 2017. The new bundled approach is reflected in Microsoft’s sales force reshuffling last week. Microsoft is trying to reorganize its sales staff to focus on specific markets such as small and medium-sized businesses instead of discrete products.

Why Microsoft launched Azure Stack

In its continued effort to beef up its cloud computing business, Microsoft launched Azure Stack, an extension of Azure, which brings to the table the swift-paced innovation of cloud computing to on-premises environments and allows entirely new hybrid cloud situations. The company has set a goal of reaching $20.0 billion in revenues by 2018.

As the graph above shows, Microsoft’s Azure has been easily outpacing Amazon’s (AMZN) AWS (Amazon Web Services). However, the latter is comfortably in the lead in the cloud computing market. It has a 31.0% share in the segment. Microsoft’s Azure is at a distant second with an 11.0% market share.


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