Microsoft Nabs A Giant, 100,000-User Contract For Its Office 365 Cloud

Business Insider

Microsoft has announced another big win for its cloud version of Office, Office 365.

This time it's a 100,000-seat deal with the State of Texas.

This follows news in recent months of a 600,000-seat contract with the Department of Veterans, a 200,000-seat contract with Toyota, and various other deals.

Office 365 is Microsoft's answer to Google Apps. It's a cloud-based version of its Office productivity apps including Word, Excel, PowerPoint, Lync, etc.

All of these big contracts make Microsoft look like it's killing it with its cloud. But execs still won't reveal how much revenue Office 365 is generating, and that's not a great sign.

Office 365 isn't exactly a brand new product. It's been up-and-running for nearly two years, launching in June, 2011. (Before that, it was known as the Business Productivity Online Suite.)

We've pressed Microsoft to comment on revenues and have been consistently told no comment.

We do know that last quarter, Microsoft Business Division posted $5.69 billion of revenue, a 10% decrease from the prior year period.

MBD is the unit responsible for Office 365 as well as the regular Office software. Microsoft says when you eliminate certain short-term items, like its Office Upgrade Offer, the unit posted non-GAAP revenue growth of 3%.

But it credits that growth to Microsoft's regular software, noting that these server products experienced double-digit revenue growth.

Where does that leave the Office cloud? In a fog.

Note: Don't confuse "Office 365" with the confusingly named " Office 365 Home Premium edition." Home Premium is not a cloud version of Office. It is the latest version of the Office software, known as Office 2013, paid for on an annual subscription basis.



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