3 ms·
Who's to say they're doing anything wrong? Microsoft is a huge company that can subsidize products using their profits from other products. They book Office 365
by rgbrenner 7y ago
Who's to say they're doing anything wrong? Microsoft is a huge company that can subsidize products using their profits from other products. They book Office 365 revenue as cloud revenue, and they're eager to grow that portion of their business to make Azure look good. So they're basically giving away services and throwing money at it to pad growth for Azure.
If anything, it's likely Dropbox's prices are closer to the true cost of providing the service.
- scarface74 7y agoMicrosoft separates Office and Productivity from Cloud https://www.zdnet.com/article/microsofts-commercial-cloud-revenue-hits-38-4-billion-run-rate-in-q3/ https://www.zdnet.com/article/microsofts-commercial-cloud-re... Commercial cloud revenue was $9.6 billion in the third quarter, up 41 percent from a year ago. Revenue in Microsoft's productivity and business processes unit was $10.2 billion as commercial Office revenue grew 12 percent.
- Wowfunhappy 7y agoOkay, so the problem isn't Dropbox's original business model was inherently flawed, but that they have a competitor who is behaving unsustainably.
- scarface74 7y agoYou really think that Microsoft is losing money on Office 365 subscriptions?
- Wowfunhappy 7y agoThat's what the GP said, not me. "They're basically giving away services and throwing money at it to pad growth for Azure."
- scarface74 7y agoI posted a link showing that MS does split off Office revenue from cloud revenue.
- rgbrenner 7y agoThat's not what I said. This was a comparison with Dropbox. I was comparing drop box with one drive.