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I think the article is potentially misleading. Just because a large number of traditional enterprise customers switched their on-prem exchange/office licenses
by adwf 9y ago
I think the article is potentially misleading. Just because a large number of traditional enterprise customers switched their on-prem exchange/office licenses for cloud licenses, doesn't mean that MS is leading the way. Cannibalising your own market is meaningless.
- gowld 9y agoLast time MS tried not to cannibalize their own market, they failed to show up for the Internet in the 1990s Netscape/Google era. If they are cannibalizing their own market now, it means they have learned how to stay afloat as times change. That's important, especially if you assume that Cloud is where future growth lies, and on-prem installed software/hardware is not. In all this, "Revenue" is a silly word, since in the Cloud world, you've got comingled hardware rentals and software licensing, which have very different profit margins.
- adwf 9y agoI agree, but trying to say that you're a market leader when really you've just exchanged tit for tat is highly misleading. Claiming that you are beating Amazon at cloud when all you've done is move exchange licenses to a hosted solution is hardly amazing.
- mankash666 9y ago"Cannibalising your own market is meaningless" --> No it isn't. Revenues are moving from one BU to another, with the latter forecast-ed to grow exponentially. It is an expected outcome of moving to the cloud.