Office 365 grabs quarter of Office sales

Office 365 sales have made up 25% of all Office retail sales over the past two months, according to an analyst.

Office 365 grabs quarter of Office sales

While a quarter of US Office 2013 customers are opting for the subscription model of the productivity suite, that hasn’t boosted overall sales.

“Office 365 has accounted for about 25% of the [unit] volume,” said Stephen Baker, an analyst at NPD Group, according to a report in Computer World. “Office 2013 has had about three-fourths of the retail business.”

“The new versions haven’t really changed the trajectory of sales,” Baker added. “Sales compared to the same weeks in 2012 were pretty flat. But that’s understandable when you haven’t spent a lot of money on promotion.”

Office 365 Home Premium costs £80 for a year’s subscription, which includes licences for up to five PCs and the full suite: Word, Excel, PowerPoint, One Note, Outlook, Publisher and Access.

The standard licence for Office Home and Student costs £110. While it can be used perpetually, the licence only applies for a single PC and doesn’t include Outlook, Publisher or Access.

The standard licence for Office Home and Business costs £220, and includes Outlook, Publisher and Access, but again can only be used on a single PC.

Office is a massive contributor to Microsoft’s bottom line, with its Business Division pulling in $24bn in revenue in 2012 – and 90% of that from Office sales.

However, 80% of Office sales are to businesses, so the true test of Office 365’s success will be whether the subscription model takes off in corporations.

Microsoft has yet to release sales data, and is yet to respond to our request for comment.

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