Microsoft CFO: Office 365 Home Premium now has 2 million subscribers

Microsoft launched Office 365 Home Premium, the first consumer version of its cloud-based software subscription service, in late January. In late May, Microsoft said it had signed up over one million subscribers for the Home Premium version.

Today, as part of the company's financial analyst meeting in Bellevue, Washington, Microsoft's chief financial offer Amy Hood stated that Office 365 Home Premium now has two million subscribers. The timing of the announcement would seem to indicate that Microsoft's subscriber based doubled at about the same rate that it took to go from zero to one million subscribers from January to May. Microsoft charges people $99 a year for Office 365 Home Premium.

Having two million subscribers to Office 365 Home Premium shows that there is indeed a growing audience who want to sign up for an office software service, rather than paying for stand alone software products. Microsoft has been pushing to move more of its software releases as cloud-based services and so far it would seem that the general public is moving in that direction as well.

Earlier in the meeting, Kevin Turner, the Chief Operating Officer of Microsoft, stated that Office 365 is now at a $1.5 billion annual run rate.

Source: Microsoft | Image via Microsoft

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28 Comments

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I'm not a fan of SaaS, but I'd be more impressed if Office 365 ran entirely from any standards-compliant browser. That would mean I could use it on virtually any OS, anywhere, anytime I wanted. Of course, that's never going to happen, but oh well.....

Office 365 has better price for companies. Otherwise it is piece of sh***t - useless online services, ofc spying and UGLY Office 2013. Not to mention it won't work on XP/Vista at all.

Office 2010 price rised, no family packs anymore.

That's potentially $200 million per year in revenue for a service that only went to general availability in January of this year. That's pretty impressive.

Got 2010 here and will never go for subscription service for me. But I use kingsoft office now which is much better than Office anyway. And its perpetual licence for only $69.

Auditor said,
Got 2010 here and will never go for subscription service for me. But I use kingsoft office now which is much better than Office anyway. And its perpetual licence for only $69.

LOL...... Mean while the people who want to be productive will keep using MS Office

Auditor said,
Got 2010 here and will never go for subscription service for me. But I use kingsoft office now which is much better than Office anyway. And its perpetual licence for only $69.

haha, kingsoft office. Real funny

Auditor said,
Got 2010 here and will never go for subscription service for me. But I use kingsoft office now which is much better than Office anyway. And its perpetual licence for only $69.

Office has always been microsoft's best product. Comparing office with kings soft is like you compare bently or aston matin to wolkswagon

If I where to pay to get the semi useful version of KingSoft office, I might as well pay a little more to get the real deal, which works far better and more efficiently.

Of course, I still wouldn't get Norwegian language and proofing in KingSoft no matter how much I paid. Which for an office suite is kind of a little bit important.

Besides that I also got 2 years of office 365 for free through expert zone.

I actually paid the extra $50/year for the small business service, because if there's ever a problem, you can actually open a ticket and talk to someone that knows what they're doing.

Spicoli said,
I actually paid the extra $50/year for the small business service, because if there's ever a problem, you can actually open a ticket and talk to someone that knows what they're doing.

Same here, plus you get a "real" Exchange experience with all the optons.

Fritzly said,

Same here, plus you get a "real" Exchange experience with all the optons.

But Small Business Premium only allows one install for $150 per year.

Home Premium gives you 5 installs for $100 per year. You can subscribe to Exchange separately for $50 per user.

TomJones said,

But Small Business Premium only allows one install for $150 per year.

Home Premium gives you 5 installs for $100 per year. You can subscribe to Exchange separately for $50 per user.

O365 Small Business is actually $60 per user, and that's only if you pay annually. Otherwise, it's $6 per month.

If you're risk averse, Home Premium + O365 Small Business would cost $16 / month. Whereas, O365 Small Business Premium costs $15 / month.

TMYW said,

O365 Small Business is actually $60 per user, and that's only if you pay annually. Otherwise, it's $6 per month.

Exchange Online is $4 per month.

TMYW said,

Yup, you get 5 installs per user. You actually save $10 over getting the Home Premium ($99) + O365 Small Business ($60).

I have been using the E1 plan now for almost a year. If I were to switch to the Small Business Premium plan, can you install those 5 licenses on your home computers to be used with different user accounts or would that mean if I wanted my family to have separate login accounts, I would have to set them up as separate users?

It's cheaper to do it through subscription for consumer.. and easier to swallow 99 a year. Plus, i got 1 year of XBL thrown in for free

spudtrooper said,
It's cheaper to do it through subscription for consumer.. and easier to swallow 99 a year. Plus, i got 1 year of XBL thrown in for free

Yes, those 99$ for a 1-year license are far, far cheaper than the same 99$ that could have bought you a full non-expiring license before Office 2013/365 were released.

I don't get the sarcasm. What version of Office could you have purchased for $99 before Office 2013/365 was released? The Home & Student one? I think Office 365 contains a lot more than the home one.

The full version was about twice the price before, though with 5 installs, the new one user version is about the same.

However, 365 is the FULL office package. Heck the box doesn't list all the apps you get, it only lists the ones available on Mac as well. So Windows users get a few "bonus" apps as the MS rep called it