Microsoft Offers Important Office 365 Growth Metrics at Its SharePoint Conference 2014

Jared Spataro, General Manager, opened the Microsoft®SharePoint® Conference, 2014 with news about Office 365, Microsoft’s cloud bundle offer of SharePoint, Lync, and Outlook: the business has grown by 500% and is now the fastest growing product in Microsoft’s history. Spataro also informed a massive audience awaiting the core of the keynote presentation (to be delivered by no less a luminary than President Bill Clinton) on sales performance for the product — Office 365 produced approximately $1.5 Billion for the company last year.

The core component of the Office 365 Software as a Service (SaaS) offer is SharePoint. Anyone interested in learning more about the year over year sales performance for SharePoint quickly got their answer. By achieving its position as the fastest growing product in Microsoft’s history, Office 365 had displaced SharePoint, itself, which had produced “double digit growth, consequently, for each of the last 18 quarters” (precis of comment made by Jared Spataro during his Keynote presentation at the Microsoft SharePoint Conference 2014).

So it doesn’t take a lot of math to put together an approximate picture of combined revenue into the company of some where well north of $2.7 Billion for a combination of on premise SharePoint sales and Office 365 subscriptions. My approximation is likely to be conservative as I’ve simply added $1.2 Billion to the approximate $1.5 Billion Spataro publicly presented (disclaimer: I have no verified statistics to support my approximation beyond the $1.5 Billion mentioned during the Keynote for this fiscal year).

The numbers didn’t stop here. Prior to Jared Spataro reaching the podium to kick off the Keynote, Microsoft presented a multi screen video show for the audience purely composed of some staggering statistics: SharePoint hosting, literally, hundreds of thousands of blogs, massive numbers of newsfeeds (combining statistics from its very popular Yammer with the core SharePoint newsfeed feature), and lots and lots of implementations of the product as an internal Intranet for business consumers.

The public relations timing of the opening of the SharePoint Conference, 2014, the announcement of Mark Hurd’s promotion to the position of Chief Strategy Officer for Microsoft (it’s worth noting Hurd served as the core pollster for President Bill Clinton, and, later, Secretary of State Hillary Rodham Clinton), and, finally, the interview with John Thompson, Chairman, on Bloomberg TV, is near perfect.

I can only conclude Microsoft is “smoking”, right now, and doesn’t look to cool off anytime soon.

Ira Michael Blonder

© IMB Enterprises, Inc. & Ira Michael Blonder, 2014 All Rights Reserved

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