Microsoft: Office 365 Home Premium now has 3.5 million subscribers

Microsoft launched its consumer oriented Office 365 Home Premium service just under a year ago and now it appears that the subscription service has done very well in its first year. Today, as part of its financial report for its last fiscal quarter, which ended December 31st, Microsoft said it now has 3.5 million subscribers for Office 365 Home Premium.

The updated numbers show a rather big boost in new users compared to the one million subscriber milestone in May 2013 and the two million mark which was achieved in September 2013. Office 365 Home Premium costs $9.99 a month or $99.99 a year and offers users access to Word, Excel, PowerPoint, Outlook. OneNote, Access, and Publisher on up to five Windows or Mac PCs and up to five smartphones.

The shift from using retail software to a subscription business model for an Office product does have a drawback, Microsoft also said that revenues from its Office Consumer division were actually down 16 percent last quarter. The company said that was "due to the shift to Office 365 Home Premium" by its customers. Still, the 3.5 million account number in less than a year is an encouraging sign as Microsoft slowly but inevitably moves away from selling stand-alone software.

Source: Microsoft | Image via Microsoft

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Got Office 365 Home Premium last month.... I was hesitant at first, but now I see the true value of it and I absolutely love it. The fact that I can use it on so many devices now with my family, and getting frequent updates (at least once a month) is awesome too.

3 million users vs 120 million users who use the free Google Docs in Google Drive? Uh....gotta do the math.

This bit of news is both GOOD and BAD for Microsoft. The Good is that less than 20% of Office users to switch. The BAD news is that 80% have not.

Sometime in this quarter in the users' in the final hour of the users 365th day of using Office 365 if they will pay a grand total of $198 for it's use.

VictorWho said,
3 million users vs 120 million users who use the free Google Docs in Google Drive? Uh....gotta do the math.

This bit of news is both GOOD and BAD for Microsoft. The Good is that less than 20% of Office users to switch. The BAD news is that 80% have not.

Sometime in this quarter in the users' in the final hour of the users 365th day of using Office 365 if they will pay a grand total of $198 for it's use.

1) Google just counts the number of users of one service, and claims that all services has that same number of users. 120 million users of GMail? That means there are 120 million users of Google Docs, Google Drive, Google+, Youtube, etc.
2) Google Docs is the same as Microsoft's online Office apps? If you think you can compare Google's offerings to Office 365, you have no idea what Office 365 is.
3) Microsoft sells millions of copies of standalone Office as well as business Office 365, in addition to Office 365 ***Home Premium*** (the topic of this article). Claiming that Office has only 3 million users is like saying that Chevy beat Ford in sales because Ford sold only 20,000 white F-150s while GM sold a total of 10 million cars, therefore GM wins!
4) Where are you getting that $198 figure from? It says right up there that it costs $99/year.

OFFICE 365 HOME PREMIMUM dude... this does not count the hundreds of millions of people using the standalone Office suites and business suites as well. Google Docs isn't doing that great at all TBH compared to Office. No one can even compare. Office is definitely one of Microsoft's strongest products/services.

VictorWho said,
3 million users vs 120 million users who use the free Google Docs in Google Drive? Uh....gotta do the math.

Yes, do the math. How many of those 120 million Google users are paying to use Google Docs?

How does that number compare to Office 365 users + Office boxed copy users... all paid users? And how does it compare when you add in free users of Office web apps?

VictorWho said,
3 million users vs 120 million users who use the free Google Docs in Google Drive? Uh....gotta do the math.

This bit of news is both GOOD and BAD for Microsoft. The Good is that less than 20% of Office users to switch. The BAD news is that 80% have not.

Sometime in this quarter in the users' in the final hour of the users 365th day of using Office 365 if they will pay a grand total of $198 for it's use.

In addition the math corrections others have offered, the 3 million also does not include the people use the Web version of Office, which is the direct competitor to Google Docs. The thing is, Office users aren't forced to 'only' use the Web version.

So if you guestimate that 10% of Windows users probably use the Web version of Office, that is about 150 million to add to the 'premium' subscription sales and the millions of copies of Office standalone sold.

Go to e.g. Facebook. I don't know why, but if someone post a table, it's normally a Google doc. I not really "use" Google Docs, if I simple view it or enter a value.

warwagon said,
I use kingsoft office

You are absolutely right and it is feature rich program which cost fraction of money for perpetual license and can cater the needs of over 90% of users.

trojan_market said,

Chinese software? no thankyou. we have enough Chinese hardware

Yeah, Like your Made in America Software had not been breached for snooping. You keep paying MS inflated perpetual fee then.

Auditor said,

Yeah, Like your Made in America Software had not been breached for snooping. You keep paying MS inflated perpetual fee then.


You can enjoy your free buggy office, I pay for my office. I get support, you don't. again in America nobody forces you to do anything. Its not china. Its land of free.

trojan_market said,

You can enjoy your free buggy office, I pay for my office. I get support, you don't. again in America nobody forces you to do anything. Its not china. Its land of free.

So your reasoning is using better alternative from some other country should invoke patriotism. That was the lamest excuse and by the way who said that was buggy office, i have been using it for past 2 year and it never crashed me on once. And remind you I am regular user of office product.

In America, the land of free, it is only perception that it is land of free. If you want to live in that delusion then good for you.

Auditor said,

So your reasoning is using better alternative from some other country should invoke patriotism. That was the lamest excuse and by the way who said that was buggy office, i have been using it for past 2 year and it never crashed me on once. And remind you I am regular user of office product.

In America, the land of free, it is only perception that it is land of free. If you want to live in that delusion then good for you.


if it works for you, good for you. keep using it. as I said earlier I prefer to get support. I don't know how is it patriotism when you can use your common sense. free software is free, it has bugs, maybe you won't notice it but what kind of company give away awesome product as you describe it, for free? when I say land of free means government donot block products, donot block internet. you can use whatever you want. you got problem with that go to china where internet is regulated and blocked by firewall. you cannot use softwares outside of communist party defined category.

trojan_market said,

if it works for you, good for you. keep using it. as I said earlier I prefer to get support. I don't know how is it patriotism when you can use your common sense. free software is free, it has bugs, maybe you won't notice it but what kind of company give away awesome product as you describe it, for free? when I say land of free means government donot block products, donot block internet. you can use whatever you want. you got problem with that go to china where internet is regulated and blocked by firewall. you cannot use softwares outside of communist party defined category.

Do you even know what you are talking about. I don't know what kind of Office do you need that you need a support. For most of the average users they don't need a support as Office is not an overly complicated customized product. But If you do need a support then it is up to you.

By the way free does not mean buggy and feature less. I am sure you even haven't tried it. There are two versions free and paid and believe me overpriced crap does not mean it is always good.

Last it does not matter where the software is coming from as long as it is working fine. And one thing, China might be not land of free as the openly block thing but I will take it anytime that US spying on me without me even knowing it.

Auditor said,

Do you even know what you are talking about. I don't know what kind of Office do you need that you need a support. For most of the average users they don't need a support as Office is not an overly complicated customized product. But If you do need a support then it is up to you.

By the way free does not mean buggy and feature less. I am sure you even haven't tried it. There are two versions free and paid and believe me overpriced crap does not mean it is always good.

Last it does not matter where the software is coming from as long as it is working fine. And one thing, China might be not land of free as the openly block thing but I will take it anytime that US spying on me without me even knowing it.


two things and I won't reply anymore, first support is not only for helping you using softwares it has many benefits if you or your employees work with that software alot. do some research. second, I have used similar softwares before and the best office alternative is LibreOffice (former open office) which is OK but has many features missing. some formats are propriety. like it or not Microsoft wanted to make sure it remains on top so some features and formats are belong to MS office, so if you get these alternatives you cannot work with some documents. Macros might not work because it is using VB Microsoft's own language. If you're average user you can use any of these free products, but if you are serious or have company, employess, you spend too much on other things than worry about somemoney to increase people's productivity.

Mandosis said,
I don't even use Office anymore. Google Docs does just about everything I need it to do.

Where in the article was Google or Google docs mentioned?

WhatTheSchmidt said,

Where in the article was Google or Google docs mentioned?

Yeah, comes under the categories of "nobody asked you" and "nobody cares".

rfirth said,

Yeah, comes under the categories of "nobody asked you" and "nobody cares".

There are a few people who make sure that you do not deviate from anything the article says. I just wanted to let Mandosis know before those people show up and start yelling at him like they do to everyone else.

Mandosis said,
I don't even use Office anymore. Google Docs does just about everything I need it to do.

Cool. My nephews prefer crayons to Office also.

WhatTheSchmidt said,

Where in the article was Google or Google docs mentioned?


he's probably just upset office 365 is doing so well, so he's trying to make himself feel better by dismissing the positive 365 boost by pumping his chest of his google docs preference over office 365.

Oh yeah, I am so upset that a product is selling so well that I am going to get mad for no reason what so ever. When you go over the numbers its not even doing that great. That is a small subset of office users actually using office 365.

Mandosis said,
Oh yeah, I am so upset that a product is selling so well that I am going to get mad for no reason what so ever. When you go over the numbers its not even doing that great. That is a small subset of office users actually using office 365.

They are still making gobs of money from Office 365 Home Premium, Office 365 for businesses, Office boxed copies, and the online version that compares to Google.

Got to find some twisted way to downplay any positive number, don't you?

No I was simply saying the truth. This will eventually overtake the desktop version in the future but it will be a bit before this catches on and have a long way to go to get there.

WhatTheSchmidt said,

Where in the article was Google or Google docs mentioned?

Where is article it says.. you can't mention alternative competitive product.

Mandosis said,
No I was simply saying the truth. This will eventually overtake the desktop version in the future but it will be a bit before this catches on and have a long way to go to get there.

What truth? If you realized how many businesses were blocking Google services because it creates legal issues, you might not be so confident.

Google admits to data mining GMail and GDocs. This violates secrecy of communications and other laws that falls back on the companies that would allow users access to these services.

Just EMAILING a customer with an @Gmail email address often violates several company policies and also breaks laws in most places in the world.


I'm glad you like GDocs... I personally like not having a company use the contents of my stored documents to calculate trends and sell information.

Mandosis said,
I don't even use Office anymore. Google Docs does just about everything I need it to do.

I like competition simply because it benefit users. but google Docs (which is not Docs anymore is called Drive) replacing Office is like Bing will replace Google. Is that crazy

trojan_market said,

I like competition simply because it benefit users. but google Docs (which is not Docs anymore is called Drive) replacing Office is like Bing will replace Google. Is that crazy

You generally cant beat the paid product but Docs (It is still called Docs, Its integrated into drive) it can actually replace office and for free. It does everything office does in regards to word processing and slideshows (power point basically) and for free. If I had access to Office 365 I would probably use that.

Mandosis said,

You generally cant beat the paid product but Docs (It is still called Docs, Its integrated into drive) it can actually replace office and for free.

Except you get data mined. Don't use it for anything sensitive.

If I had access to Office 365 I would probably use that.

You have free access to Office Web Apps, which is the Google Docs equivalent, not Office 365. Free Word, PowerPoint, Excel, and OneNote. Even online Excel surveys.

Mandosis said,

You generally cant beat the paid product but Docs (It is still called Docs, Its integrated into drive) it can actually replace office and for free. It does everything office does in regards to word processing and slideshows (power point basically) and for free. If I had access to Office 365 I would probably use that.

As someone said above there are hundred of free alternative for office, free is not always good. look at linux. its a good OS but free stuff killed it. most free softwares lack features, are full of bugs and visually not appealing. google docs (which is not totally free because you have to pay for premium service and more space as you use) might have 20% of capabilities of MS Office. Its just a tool for those who don't work seriously, if you have a small business, you don't want your employees work with google docs. a) because it doesn't have many features b) its a free product, is there for casual use not professional use. c) doesn't support all document types. so 9 bucks a year worth not working with the top tool? its up to you to decide.

It's such a great deal for the best Office suite in the world, essentially $8 a month. Make me wish Adobe Creative Cloud was cheaper.

Completely agree. Love my Office 365 and it has awesome value! :-)

Adobe REALLY needs to take some queues from MS if they want to stay in business. I still can't believe Adobe expects people to pay $50/month for Creative Cloud. People are going to stick with CS6 or their older versions forever or go with competitors if they don't put a drastically lower monthly price or add various subscription options.

Enron said,
It's such a great deal for the best Office suite in the world, essentially $8 a month. Make me wish Adobe Creative Cloud was cheaper.

totally worthless when u can buy home premium for around $180 and be with it for 3 years when the next update comes out.

I get free subscription to 360 because i have msdn and yet I dont use it because it not that great

justin76 said,

totally worthless when u can buy home premium for around $180 and be with it for 3 years when the next update comes out.

I get free subscription to 360 because i have msdn and yet I dont use it because it not that great


I would of agreed with you, but since MS restricted the licensing for Home and Student to 1 PC (from 3) it works out cheaper to get 365 then to get 3 "standard" versions of the software (as I have more then 1 PC to install it on).