Microsoft’s Strategy on its Office 365
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Regardless of which cloud service provider, their main goal is to create revenue with their services. This means that they are going to make steps that will force people to pay more for them. Microsoft is quite good with this in terms of their marketing of their Office 365.
Considering that Microsoft owns the majority of desktop PCs, they can easily force the use of Office 365. However, they are not going to push it too hard but rather only up to an extent of justifiability. This is to ensure that customers are getting an equal amount of return for their expenses and do not feel cheated. Microsoft understands that if they take too much advantage of their leverage, they might experience a significant decrease of loyal customers.
There are other alternatives to Office 365 that are still under Microsoft, however, they are nowhere near as flexible despite being cheaper. This includes the conventional set of applications like Exchange, SharePoint, Word, Excel, and many more. As a matter of fact, customers pay 80 percent more on Office 365 compared to the traditional approach. This means that an Office 365 subscription of $80 per year is more expensive than a box of software that could averagely last about 3 years.
This is because there are limited-functionality Web applications in Office 365 that allows people to work other people’s computers. In addition, it also greatly favors the use of Microsoft OneDrive cloud storage, making all the documents accessible from one location without the hassle of bringing anything with you. In general, it is described as a hybrid cloud model that is unlike Google Apps but more like Apple’s iWork.
Though, Microsoft is not really forcing their customers to use the more expensive Office 365, as a matter of fact, there are a lot of third-party apps that are Office-compatible. However, this opens the possibility of certain issues now or later, something that not everybody is willing to risk. As a result, Microsoft is giving its market the perception that it has alternative choices, when in fact, they are also giving it limitations.
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