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New Office 365 subscriptions for consumers plunged 62 percent in 2016

Gregg Keizer | Jan. 31, 2017
Rolls neared 25M, but additions slowed significantly

Microsoft has rarely provided information on Office 365 revenue; Computerworld stopped extrapolating sales in 2015 after it became apparent that rounding errors may have skewed the results. Last week, Microsoft only said revenue from the consumer side of Office -- a bucket that included not only Office 365 but also the perpetual licenses sold at retail -- was up 22% in the December quarter.

The increase, the largest of 2016, was not as stupendous as at first glance, however: The comparable quarter -- the fourth of 2015 -- saw a revenue decline of 14% from the same period in 2014. Over a two-year span, then, from the December quarter of 2014 to the same period in 2016, the consumer Office revenue climbed by a less impressive 5%.

office365 new subs  

Additions to the consumer subscription rolls for Office 365 slumped in 2016 to 4.3 million, a 62% decline from the year before. 

 

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