Microsoft: Office 365 Home now has 4.4 million subscribers

Microsoft seems to be establishing a solid business model for Office 365 Home (previously known as Home Premium). The company launched the subscription-based consumer software service over a year ago and today the company announced it now has 4.4 million paid users.

Today's new update, part of Microsoft's latest quarterly financial results, shows that the company's slow switch from using stand alone software for its Office products to a monthly or yearly subscription model seems to be working. Today's numbers compared well to the 3.5 million Office 365 Home subscribers that it announced just three months ago in January.

Today's announcement does not take into account any subscribers that might have signed up for the new Office 365 Personal, the cheaper version of Home that launched earlier in April. Personal has a price of $6.99 a month or $69.99 a year, for access to Office software on one PC and one tablet. Home charges $9.99 a month, or $99.99 for a year, for up to five PCs and up to five tablets. The numbers also don't likely reflect the full impact of the launch of Office for iPad, which happened just a few days before Microsoft's fiscal quarter ended.

Microsoft also announced today that revenues from the business versions of Office 365 grew over 100 percent for the quarter, but specific numbers were not mentioned. It added that commercial seats nearly doubled for the service.

Image Credit: Microsoft

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It is mainly ignorant customers to blame to fall in this trap. I personally know at least 10 people who purchased Office 365 because it came installed on their PC and it gives them option to purchase it for $100. Many don't even know what they are doing or do they really need Office subscription. Their needs are very basic but they keep buying this subscription because they don't know any better.

Financially many of these users will be much better off if they purchase a boxed version rather than this subscription model but whatever its their money and if they are too ignorant to see it through then its their problem.

Horrible trend. Rumor has it we are going to a subscription model for Windows now too. MS isn't happy with users upgrading every 2-3 years, so they are finding ways to milk their customers on an annual basis. I am NOT ok with this, nor Microsoft's direction in general. I, like many many others, are going to find alternatives. Ones that don't come with an "auto-renew" option.

Same here, Mr. Dee - however, it is still a fantastic deal for those that didn't follow our lead. John Nemesh - it's called a choice; not everyone wants or needs the entire one gigabyte-plus of Office Professional Plus. In my case, I downgraded from the even pricier Office Premium (now Office Ultimate) because Plus was made available - I have zero need for Project or Visio (both included with Ultimate) - it's like choosing to buy or lease a vehicle. (Or a computer, for that matter - or a smartphone; you don't HAVE to purchase any of them outright any more.)

Apparently, to some, choice/options are a scary thing.

Office Ultimate SKU was only available during the release Office 2007 and was pretty much equivalent to Office Enterprise edition 2007 with exception of Office Communicator which was not included. Also, Project and Visio have never been included in any of the SKU's, they are always licensed separately, even if you have rights to any of the suites. Visio and Project each cost about $900 per license.

In my case, I have Office as part of my MSDN, so, why not use it? I have Office 2007 Enterprise on my home PC here, came with it (its legal), haven't had any desire to upgrade it. Works just fine.

Finally subscribed to Office 365 Home after rocking the work provided Enterprise versions ever since MS stopped giving me free copies as a beta-tester back in 2006. I feel better being in charge of my subscription and having it available for my family too..

Almost 1 million for just Home Premium in 3 months is not bad at all. I hope they'll mention how many have subscribed from within Office for iPad somewhere down the line.

Proud to be one of them. It is a great value for me. About $8 a month for 5 PCs and some more devices on top of that, runs on Mac and Windows, has mobile apps on all.

I just wish Adobe had more reasonable pricing for their stuff. $50 a month doesn't work for everybody.

Adobe is offering different products though geared particularly towards professionals so it makes more sense for them to charge a premium. Also if you just need one app (Photoshop for instance) I believe it is $15 or $20/month...

Not sure how this is a good deal compared to Office 2007 and Office 2010 "Home and Student Editions" which allowed for up to 5 installs and was only a 1 time cost of $89 - $119 (depending on if you got it on sale). I suppose if you have Macs and Windows machines there is some value there (as previously you would have had to buy separate versions).

Unless MS starts releasing significant updates yearly, I think this is about twice the cost it should be for home users. Two years of Office 365 sub and Office 2013 = ~$200 vs lifetime of Office 2010 Home and Student only costing me $120...

ZeroHour said,
Well old office has no ongoing costs unlike running exchange on o365 as part of the deal. You can still buy old style licenses.

but you get benefits out of it.
1) free space to store your documents on the cloud
2) access document virtually from anywhere, ipad, phone, kiosk browsers, anywhere
3) you always have latest and greatest.

if you ask me its a pretty good deal. and I am already a User and loving it.

Enron said,

I just wish Adobe had more reasonable pricing for their stuff. $50 a month doesn't work for everybody.

I wish Adobe had different versions of Creative Cloud... like they used to with the old CS suites: Design Standard, Design & Web Premium, Production Premium and Master Collection.

Maybe charge $30 a month for access to just the programs in those former suites. And $50 a month for everything.

As it is right now... you can subscribe to one program for $20 a month... which makes subscribing to two programs $40 a month.

Well... for $50 a month... you get all 28 programs.

There are no other options.

I subscribe to Creative Cloud... and I do use many of the major programs. But a lot of them I'll never use.

I still like it though.