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Pssst! Office 365 customers pay Microsoft up to 80% more over long haul

Gregg Keizer | May 8, 2015
Tells Wall Street that when it turns a customer into a subscriber, it gets 1.2 to 1.8 times the revenue compared to old-school licensing.

DeGroot did not disagree. "Switching [customers] to the cloud will save Microsoft the potential for revenue declines and generate a steady, higher revenue stream, no question," he said.

But the increase in Microsoft's revenue from subscriptions like Office 365 comes from somewhere, and DeGroot argued that in most cases it comes from customers' pockets. "Any CIO who goes for this without thorough analysis should resign," DeGroot said. "He/she won't have much to do in the future anyway."

 

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