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Factors Influencing Microsoft’s Office 365 Growth

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Microsoft’s different Office 365 suites

The growing demand for Microsoft’s (MSFT) Office 365, categorized as E1, E3, and E5 based on features, continues to boost the company’s overall business. E1 is the lightest version, followed by E3 and E5. Its commercial and consumer products and cloud services have maintained stable growth each quarter, as shown in the graph below.

E5 prioritizes security

Unlike E1 and E3, Microsoft’s E5 comprises additional security features such as Advanced Threat Protection and Customer Lockbox, and Microsoft’s Business Intelligence tools, which analyze data. It allows Skype to be combined with a traditional phone system.

GDPR could be a driver

As mentioned in the previous part, the GDPR (General Data Protection Regulation), implemented in Europe as of May, may boost demand for the company’s E5 Office 365 suite, which could help businesses comply with the regulation. To promote the E5 suite, Microsoft is offering discounts, which could boost demand. As large players such as IBM (IBM), Oracle (ORCL), and Amazon (AMZN) continue to launch innovative products and services to gain market share, Microsoft’s E5 could keep it competitive.

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