Microsoft and Apple Facing Off Over Office for iOS Subscription Revenues, Not SkyDrive

[Rocketman]

Why?

Corporations have customer bases and their own old school ecosystems they want to defend. However they are confused by trying to defend an old system in the midst of a new system.

When interacting with a "new" ecosystem, there is considerable resistance.

Apple resisted selling Macs at high prices when the industry was targeting the lowest common denominator. Almost killed them. Now they have profits of all other competitors combined in all markets.

Non-intuitive.

Rocketman

[simongoldring]

Originally Posted by walnuts

OR go online and save 30% off the subscription price!"

Of course, it would save about the consumer about 23%, not 30%.

[BaldiMac]

Originally Posted by AppleScruff1

Right.

Originally Posted by TOYSTER17

NotSureIfSerious

I thought you can't do real work on an iPad. Now you imply that most people need Microsoft Office on an iPad. Which is it?

[sinsin07]

Originally Posted by KingofGotham1

I typed in Angry birds and see 4 free versions of Angry Birds...I don't know why, but I keep hearing people say this...its simply not true.

Don't worry, it's not you. This angry bird myth has been passed around Android fans as a rallying cry. Maybe Google search don't work so good on android.

[Liquorpuki]

Originally Posted by Ryth

Dear Microsoft

We have run the #s for you. Here are your options.

Option 1: You can have 70% of profits off of iOffice for the iOS market which consists of the iPad, iPad mini and iPhone. This amounts to hundreds of millions of devices/users out there that your app(s) can reach and hundreds of millions of revenue for you over the next few years at least.

Option 2: Nothing. You can have 0% of profits by not putting out office on iOS.

Hope this helps you with your decision making.

-Apple

Or they can maintain the pricepoint of Office by keeping it off iOS until they absolutely have no choice. Not like corporations worldwide are converting to iWorks anyway

[walnuts]

Originally Posted by bungiefan89

Probably serious. I'm a college senior majoring in journalism, and I really don't like/need Microsoft Office. The applications take far too long to start up and are filled with bells and whistles I don't need at all or don't use the vast majority of the time.

In fact, I've been a heavy writer since my early days in high school and since then I've used TextEdit almost exclusively and OpenOffice.org when I needed something like a word count.

I really love Power Point, but it doesn't deliver anything I need that I can't get for free from Google Drive.

And Excel is fine for the people who really need it for data entry and stuff, but I find the application very unfriendly to new users like me. And if you're SERIOUS about making a graph for a presentation, you should really be using Adobe software, instead of Excel which can knock out a graph really quick but is incredibly restrictive when it comes to adorning your graph with labels.

Basically, Microsoft Office is good software, but there are many people out there like me who've found perfectly feasible work-arounds that don't require giving more money to Microsoft and still satisfy all of our needs just fine.

Yes- you are right, but unfortunately, you miss the compatibility point. I think there are many of us who work for companies that use MS Office products as a standard. If I need to make edits on a report for work, nothing less than perfect compatibility is acceptable, leaving my only option to use MS Office products for this. There just isn't a good workaround. Sure, you could copy-paste text elements here and there, but any file conversions between different software packages will at a minimum destroy some formatting. Heck this happens between different versions of Office!

Personally, I would pay top dollar for a minimized version of MS Office, even if it only allowed just text edits, if only it promised full compatibility with desktop versions.

[babyj]

Originally Posted by Futurix

According to rumours the main issue is that until Microsoft starts to pay the aforementioned 30% - Apple refuses to publish any Office apps, even with purchase links removed (a la Dropbox).

In any case, 30% is a ridiculous amount of money for this as Apple is not going to be delivering any content apart from app download and they are not handling any subscription fees.

Apple have always been consistent, remove the links and you're good to go so I find it very hard to believe they would block Office even with the links gone.

You might think 30% is a lot but you're wrong. Microsoft already pay out 12% or so to resellers for Office 365 and those resellers do a lot less than Apple would be doing for their 30% and sell a very small number of units in comparison.

I'm not sure why Microsoft would make a big issue out of this. Their new subscriptions are multi-platform, pay once run everywhere (all major mobile and desktop platforms) so I'd have thought the number actually subscribing via iTunes and the App Store will reduced as a result. Plus it gets people using their platform making them easier to convert in the future, it really isn't in Microsofts interest for it not to be on iOS.

It wouldn't surprise me if Microsoft are just using this to see how far they can push Apple and what other concessions they can get in return.

[pearvsapple]

What's next. Subscription based Windows?

[Rocketman]

The death of Office has a simple and intuitive solution. Re-release XP, the only MS OS ever endorsed by Apple. People will PAY for XP.

Rocketman

[Konrad9]

Originally Posted by Speedy2

Microsoft is dead.

Yeah, not like ~85% of all desktop computers (home and office) are Windows...

[sinsin07]

Originally Posted by Stella

If MS Office on a mobile device turns out to be a killer application (especially for businesses ) and gains traction for mobile windows then its in microsoft's favour.

If business adopts windows mobile for whatever reason you can be pretty sure consumers will follow.

Sure, the uptake isn't great at the moment, but that can change in a short space of time... given the right strategy.

A lot can happen with IF, like what if there mobile turns out to be another Vista?

[MacDav]

Rules, what rules? We are Microsoft...Everyone else pays 30%? Too bad...We are Microsoft.

[KPOM]

I don't blame Microsoft for trying. Office would help shed the image that the iPad is for "consumption" only, and might help it gain acceptance in the enterprise. Plus, with the Nexus 7 and Nexus 10 (among others), there is increasing competition to the iPad line (not to mention Windows 8/RT devices). If you don't ask the question, the answer is always no.

In the end, I think Microsoft will agree to Apple's terms, or perhaps release a feature-limited version on the App store and separately promote a web app. The Financial Times dropped their App store app and developed a custom web app over this same issue, and have seemed to do well with it.

[babyj]

Originally Posted by walnuts

Yes- you are right, but unfortunately, you miss the compatibility point. I think there are many of us who work for companies that use MS Office products as a standard. If I need to make edits on a report for work, nothing less than perfect compatibility is acceptable, leaving my only option to use MS Office products for this. There just isn't a good workaround. Sure, you could copy-paste text elements here and there, but any file conversions between different software packages will at a minimum destroy some formatting. Heck this happens between different versions of Office!

What versions of Office are you running? I'm guessing not the latest versions or not the latest patches.

Microsoft made a very big thing out of compatibility with the latest versions of Office and claimed to have nailed it. They specifically claim the formatting is the same, though there could be differences in printing due to external factors.

[AppleScruff1]

Originally Posted by BaldiMac

I thought you can't do real work on an iPad. Now you imply that most people need Microsoft Office on an iPad. Which is it?

I never criticized what could be done on an iPad. My criticism is usually of Apple the company.

[sinsin07]

Originally Posted by KPOM

I don't blame Microsoft for trying. Office would help shed the image that the iPad is for "consumption" only, and might help it gain acceptance in the enterprise. ...

You"re not up to date.

[Liquorpuki]

Originally Posted by Risco

This is not 1997, where Apple had to do a deal to ensure Office came to their platform for the foreseeable future as they were on their knees. This time I agree with Apple, if they back down for Microsoft, then all the other big companies such as Google will want a concession.

Microsoft will lose this battle, iOS has decent enough penetration in the business market without having Office. Considering how little MS Windows Mobile is now used in business, I would say Microsoft need them more than Apple need MS.

There's a distinction between desktop and mobile here. On desktop, Apple needs the Microsoft ecosystem which is why they let users bootcamp Windows onto its computers. Windows has the superior third party library and enterprise solutions and Apple can't duplicate it.

On mobile, people don't see it yet but Apple placed itself at a disadvantage by making its app market so cheap/commoditized and isolating its mobile ecosystem from its desktop ecosystem. Microsoft is taking advantage of this by merging mobile and desktop and it's gonna be interesting to see how this plays out in the future

[ThatsMeRight]

Originally Posted by Ryth

Dear Microsoft

We have run the #s for you. Here are your options.

Option 1: You can have 70% of profits off of iOffice for the iOS market which consists of the iPad, iPad mini and iPhone. This amounts to hundreds of millions of devices/users out there that your app(s) can reach and hundreds of millions of revenue for you over the next few years at least.

Option 2: Nothing. You can have 0% of profits by not putting out office on iOS.

Hope this helps you with your decision making.

-Apple

I don't know who at Microsoft decides what's going to happen, but imagine that there's an executive that says "fine", and "we'll just launch it for free on Android (and Windows Phone)".

I think I would do that if I was in charge of Microsoft. Just to annoy Apple.

Dear Apple,

Thanks for your response. Here are some other options.

Option 1: You can have 20% of the profits and we 80%. We'll be able to reach tens, if not hundreds, of millions of users. We make some money. You make some money.

Option 2: You stay stubborn. You stick to your 70/30 policy. We'll launch Office on Android. For Free. And Windows Phone. For free. Perfect for everybody - except for iOS users.

Hope this helps with your decision making.

- Microsoft.

[nepalisherpa]

Couldn't they just make the app free but require a key to unlock features? They can then sell the key on their website. Apple would get nothing. Microsoft would get everything. No???

[walnuts]

Originally Posted by babyj

What versions of Office are you running? I'm guessing not the latest versions or not the latest patches.

Microsoft made a very big thing out of compatibility with the latest versions of Office and claimed to have nailed it. They specifically claim the formatting is the same, though there could be differences in printing due to external factors.

You are right- I was more referring to say Office 2008 and prior. My point was just that compatibility is key, and even minor differences between older Office versions caused issues... so by comparison Google Docs and Apple's suites are even more off the mark in terms of strict compatibility.

[Scott6666]

Originally Posted by Stella

Well microsoft, use this to your advantage.

Release Office only for mobile windows and leverage that face: MS office available only on microsoft powered phones and tablets, great for businesses and consumers alike. The best compatibility between your desktop and tablet, at a level iOS cannot achieve.

Or just raise the price 30% more that you intended to sell it for on a surface. Then keep the surface apps at that original price and if apple users don't want to be overcharged app-wise buy surface instead of an iPad.

Just have a few feature changes to say its not the same app on 2 platforms.

[drspringfield]

Originally Posted by basesloaded190

It's a slippery slope if you let one developer in with different rules than what the rest are playing by.

Well said. If Apple gave Microsoft a special deal, the developer backlash would pale in comparison to whatever Microsoft can dish out with these intentional leaks to the blogosphere.

[skaertus]

Originally Posted by ThatsMeRight

I don't know who at Microsoft decides what's going to happen, but imagine that there's an executive that says "fine", and "we'll just launch it for free on Android (and Windows Phone)".

I think I would do that if I was in charge of Microsoft. Just to annoy Apple.

Dear Apple,

Thanks for your response. Here are some other options.

Option 1: You can have 20% of the profits and we 30%. We'll be able to reach tens, if not hundreds, of millions of users. We make some money. You make some money.

Option 2: You stay stubborn. You stick to your 70/30 policy. We'll launch Office on Android. For Free. And Windows Phone. For free. Perfect for everybody - except for iOS users.

Hope this helps with your decision making.

- Microsoft.

Agreed.

Apple should consider some concessions here if it wants iOS to become serious in terms of productivity. Or it may stuck with Facebook, Instagram and Angry Birds for being forever just an expensive toy.

[MacDav]

Originally Posted by LiquidSpikes

Microsoft should go to Cydia with it... :P

And start jailbreaking phones at the microsoft store...

Only in your fantasy world. Maybe a parallel universe? Dream on......

[APlotdevice]

Originally Posted by KingofGotham1

I typed in Angry birds and see 4 free versions of Angry Birds...I don't know why, but I keep hearing people say this...its simply not true.

The free versions on iOS are just demos. On Android they offer the full game, albeit with ads. (In fact originally there wasn't a paid-version on the platform.)