Can E5 drive Office 365 business?
Microsoft’s (MSFT) Office 365 products continue to see stable growth driven by demand from both the consumer and commercial spaces. In the last five quarters, both the office consumer and commercial products cloud service businesses maintained double-digit revenue growth. The graph below shows growth of both the units during this timeframe.
Microsoft’s Office 365 has been characterized by Enterprise E1, E3, and E5 brands. The tech giant believes that its Office 365 application has already been adopted by most of its existing clients. Thus, to add value to its Office 365 product suite, the company has added extra security layers to its E5 software compared to its Office 365 Enterprise E1 and E3 suites.
How E5 can tap new business opportunities
Thus, the addition of important security features to E5 such as the Advanced Threat Protection and Customer Lockbox could increase demand from enterprise clients. Moreover, Microsoft also offers a complete package through Microsoft’s Business Intelligence tools, which provide data analysis. In addition, E5 is a premium product, so a demand increase could further boost the Office 365 product margin.
E5 could also gain from the deployment of the GDPR (General Data Protection Regulation) policy, which was implemented in Europe at the end of May 2018. The main focus of the GDPR policy is to secure customer data. The company has a large base of E1 and E3 users. So, the implementation of such a policy could prompt E1 and E3 users to switch to premium E5 software.
E5 is also compatible with Android (GOOGL) and iOS-powered devices. Thus, it may not only provide flexibility to its clients, but it could also allow the company to target different platform users.